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AXE ECN will launch a new electronic order book and matching engine to trade ASX listed securities. AXE has developed a full continuous auction model to complement its new crossings platform, due to start trading in early 2008. Full trading is expected to commence in the September quarter 2008. This move will introduce competition in trading services leading to increased market liquidity and a new focus on price, technology and innovation in market services.
AXE ECN will boost Australia’s position as a leading global market and provide a competitive offering to the ASX that will win business through a combination of better pricing for customers, better technology and market design.
“ASIC have rejected ASX’s posturing and come out with a sound, well reasoned response. NZX welcomes this process, and welcomes that ASIC have recognised the anticompetitive nature of current ASX rules. AXE has also agreed to move to a full trading platform, offering a full set of trading services, to compete fully with the ASX,” said NZX CEO Mark Weldon.
AXE ECN also welcomed last night’s release by ASIC of its second Consultation Paper on Market Services which focuses on resolving a narrow set of remaining issues and aims to deliver a positive regulatory landscape for market participants.
Following the Australian Securities and Investment Commission’s (ASIC) Consultation Paper (No. 86 – July 2007) on competition for market services showing widespread support for an injection of competition into the market, AXE ECN has refined its market structure and investor compensation arrangements to address some of the concerns raised.
“ASIC’s first round of consultation concluded the Australian market is ready for competition. Since then we have been working through the detail of a narrower set of issues with a view to having a positive regulatory framework across the board,” said CEO of AXE ECN Greg Yanco.
“The decision to bring forward the launch of our new electronic order book and matching engine came out of our discussions with ASIC. There was a clear need for wider competition in market services and this was highlighted in the submissions to the initial Consultation Paper,” Yanco said.
AXE ECN encourages market participants to evaluate ASIC’s Discussion
Paper and to make positive submissions.
“AXE ECN will create value for customers by including features on its
market to overcome structural deficiencies in the existing market or create
new, value adding services,” Yanco said.
ECNs are high-speed, low-cost platforms that separate listing from trading functions and are already available in leading global markets. AXE ECN is a joint venture between NZX, Citi, CommSec, Goldman Sachs JBWere, Macquarie Securities and Merrill Lynch.
