Australia passes law to encourage competition for main market operator ASX

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SYDNEY, Sept 6 - Australia passed a law on Wednesday to support competition in post-trade settlement and clearing for financial markets, challenging the near-monopoly status held by ASX Ltd .

That required new legislation, which was passed by the Senate on Wednesday. The legislation also gives the Reserve Bank of Australia and corporate regulator the Australian Securities and Investments Commission greater power to set operating standards and intervene on pricing and access disputes, the government said.

ASX shares closed 0.6% lower on Wednesday, in line with the broader market . The legislative change had been widely flagged by the government. In other major financial markets, clearing and settlement, or confirming the transfer of stock ownership and updating share registries, are managed by separate entities to the market operator.

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