ASIC approves Cboe to list IPOs, rival ASX
ASIC will allow Cboe Australia, a subsidiary of Cboe Global Markets, to list new companies on its platform, directly competing with the Australian Securities Exchange (ASX).
ASIC flagged the possibility of an approval in August.
Historically, Cboe Australia could only list exchange-traded funds (ETFs), despite carrying the capability to provide initial public offerings (IPO) listings across other regions, including the US and the UK.
ASIC believes the approval will lead to more investment options, IPOs and dual-listed foreign entities, claiming that the decision reinforces a "vibrant and attractive" local listing market.
Competition in Australian equities markets to date has resulted in trading costs and access to more investment products, particularly ETFs, which are already available under Cboe's existing Australian market licence, ASIC said.
ASIC chair Joe Longo said the approval builds on the discussion paper in February, which explored the changing dynamics in Australia's capital markets.
"Australia's capital markets are strong and resilient, but they must continue to adapt to evolving global market dynamics and meet the future needs of our economy," Longo said.
"This move will provide more choice for companies to list in Australia, build more links to offshore markets and create more options for investors, which is good news for the Australian economy."
Cboe Australia currently accounts for 20% of Australia's equity market turnover, representing nearly $2 billion in daily trades.
This comes as the ASX is looking to fast-track the IPO process to boost listings in June, initiating a two-year trial for eligible entities, following a decline in the number of listings over recent years.
According to the ASX Group Monthly Activity Report for September, there were six new listed entities last month (four in September 2024). Although newly listed entities increased to 26 in the three months to September end, the number of entities de-listed was also substantially greater in FY25 (60) than in FY24 (46) over the same period.
Cboe was contacted for comment.
This article first appeared on Financial Standard
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