ASIC Approves Cboe to Challenge ASX in Australian Listings

The Australian Securities and Investments Commission (ASIC) has approved Cboe Global Markets' application to operate as a listing market in Australia, enabling it to directly compete with the Australian Securities Exchange (ASX) for company listings. This approval allows Cboe Australia to offer initial public offerings (IPOs) and list new companies, expanding investment options for domestic investors and promoting links to offshore markets. Cboe currently commands 20% of Australia's equity market turnover, representing significant daily trade volume, and its new listing powers are expected to pressure ASX to reduce fees and improve competitiveness. The move comes amid ongoing regulatory scrutiny of ASX following operational setbacks and software upgrade failures, which have raised concerns about its market infrastructure stability. ASIC Chairman Joe Longo highlighted that increased competition strengthens the market by providing more choices for companies and investors, fostering a more adaptive and resilient capital market in Australia. However, some experts believe that ASX's entrenched position and ability to attract investors through index inclusion may allow it to remain the preferred listing venue for many local companies.