SYDNEY (Reuters) - Australia's corporate regulator said on Tuesday the country's stock market operator would be required to publish a comparison of clearing and settlement fees against foreign providers and justify any fee increases, in a bid to promote competition.
The Australian Securities and Investments Commission (ASIC) said ASX, responsible for some A$5 billion ($3.2 billion) of trades a day, must ensure its clearing and settlement services were offered in a transparent and non-discriminatory way.
"This is about limiting ASX's ability to misuse its monopoly power to deter new entrants," ASIC Chair Joe Longo said in a statement.
"The clear and benchmarked pricing structure is intended to reduce competitive barriers to entry for entities unaffiliated with the ASX. This is a key step in ensuring Australians have a fair, strong and efficient financial system."
Longo said ASX must take measures to provide access to its services, including data, and ensure its core technology systems are designed to facilitate third-party access.
The new rules will become effective in three months.
The ASX did not immediately respond to a request seeking comment on the regulator's decisions.
After ASX cancelled a costly overhaul of its trading platform in 2022, the Australian government said it was encouraging competition from new entrants in post-trade settlement and clearing for financial markets, challenging the near-monopoly status held by ASX.
Laws were passed in 2023 giving the ASIC and the central bank, which jointly regulate the ASX, more powers to set operating standards and intervene on pricing.
($1 = 1.5758 Australian dollars)
(Reporting by Renju Jose in Sydney; Editing by Stephen Coates)