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In April 2007, ASX Limited (ASX) provided an update on Cash Market fees1. In that announcement, ASX detailed a new cash market rebate scheme to commence 1 July 2007: the Large Participant Rebate (LPR) scheme. The LPR will more equitably share the benefits from increased market activity through a gain-share process biased in favour of participants (75:25) above a revenue growth qualification threshold. This announcement contains specific details of LPR-related thresholds. ASX has also clarified that the clearing fee for crossed trades will be capped.
As well as accommodating recent robust trading activity from an operational perspective, ASX has been successful in achieving its merger-related expense saving targets faster than expected. Consequently, ASX will provide an additional increase in cash market rebates for SVIP2 qualifying participants in the current financial year of $8.5 million. This will increase total FY07 cash market rebates from approximately $16 million to over $24 million, and broadly reverses the lowering of cash market rebates that occurred prior to the ASX/SFE merger that was primarily attributable to the capped nature of the SVIP rebate scheme. In effect, this pays rebates to participants as if a 75:25 gain-share in favour of participants had operated since 1 January 2007 mirroring the implementation at that date of a 75:25 top rate gain share arrangement for the SFE derivative market.
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