The Australian Securities and Investments Commission has released a consultation paper on the prospect of introducing competition in trading of listed securities and market data.

The ASIC said it is considering separate applications from AXE ECN Pty Ltd. and Liquidnet Australia Pty Ltd. for Australian market licences. Both AXE and Liquidnet propose to operate markets for trading in securities listed on the Australian Securities Exchange, operated by ASX Limited. AXE and Liquidnet also propose to sell data relating to trading activity on their respective markets.

“These applications represent a significant development in Australian securities markets. They raise policy issues that our regulatory regime has not dealt with before’, said the ASIC’s chairman, Tony D’Aloisio.

Chris Pearce, MP and Parliamentary Secretary to the Treasurer, determines the granting of market licences. The ASIC’s role is to provide advice. In order to do that, the ASIC is consulting publicly on the implications of the operation of these markets as part of the process of developing its advice to the minister.

“ASIC would like input from our stakeholders and market users to ensure that the regulatory regime going forward reflects the needs of the market, but overall market quality and integrity is maintained. With the benefit of that input, ASIC will provide advice to the minister,” he added.