ASX’s latest blunder shows need for new ownership model
Repeated ASX failures have exposed deep flaws in market governance. Could a super fund-backed takeover of Cboe Australia be the shake-up markets need?
The ASX’s latest operational blunder, mistagging a market announcement and triggering yet another bout of market confusion, underscores the urgent need for radical reform.
However, given the track records of the ASX board, the government and ASIC, meaningful change is unlikely to come from within.
An opportunity for externally driven change may come from an unexpected source: a takeover of Cboe Australia (formerly Chi-X) by a consortium of Australian superannuation funds. Such a move makes increasing sense in light of the pending approval of a variation to Cboe’s Australian Market Licence, which would allow it to offer listing services.
We make no suggestion that superannuation funds are actually considering an acquisition of Cboe. However, such a transaction could represent a return to earlier models of exchange governance, allowing market users — in this case institutional investors — to regain influence over market infrastructure critical to their operations.
