Chi-X Australia gets government green light

Australia's government has officially granted a license to Chi-X for the launch of a trading platform in the country, finally busting the monopoly long enjoyed by the ASX.

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Chi-X Australia gets government green light

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The decision was confirmed by financial services minister Bill Shorten and treasurer Wayne Swan today, rubber-stamping in-principle approval given last year.

It comes after the government moved to end ASX's monopoly in 2009 by transferring supervisory responsibility for financial markets from the exchange operator to the Australian Securities and Investments Commission (Asic).

The license is "subject to Chi-X meeting strict conditions in relation to resourcing, including the establishment of an adequate compensation fund and robust testing of its technological infrastructure".

Earlier this year Chi-X revealed it could launch its platform as early as October under a timetable set out by Asic.

The introduction of a rival is a second blow to ASX in quick succession, which recently had its proposed merger with the Singapore Exchange blocked by the government on the grounds it was not in the national interest.

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