FinClear looks to seize market opportunity as ASX stumbles
An ambitious Sydney market infrastructure provider is looking to capitalise on the ASX’s mistakes and shatter its monopoly in clearing and settlement.
The ASX is fighting the Nasdaq, New York Stock Exchange and now Canada's TSX for premier new listings, and inside Australia it is facing competition for trading volume from CBOE. Now an ambitious Sydney company is looking to attack the bourse from yet another angle: by challenging its effective monopoly on trading and settlement.
Following a string of technology missteps, markets infrastructure and technology provider FinClear senses an opening.
“The ASX acts in the best interest of their shareholders and they've been able to do that for a long period of time, because they virtually have been running a monopoly,” FinClear founder and CEO David Ferrall said. “They need to take ownership of their failures and ownership of the flow-on effects.”
The Australian exchange has suffered repeated delays on the botched replacement for its backend CHESS system, which was originally slated for completion in 2021 but is now not expected to be finalised until 2028 at the earliest.
