Ex-SFC chief says changes help lift ASX
The listing of a stock exchange is a strategic move which helps to improve the management and transparency of the market, according to the deputy managing director of the publicly listed Australian Stock Exchange (ASX), Robert Nottle.
Mr Nottle was the Securities and Futures Commission chairman from 1992-94.
After leaving the SFC he joined the ASX, which carried out the demutualisation plan in 1997 and publicly listed its own shares in its own market in October last year.
Its next move was to merge with the Sydney Futures Exchange.
The Australian move resembled the SAR Government's proposed market reform announced in the Budget in March, which would demutualise and merge the stock exchange, futures exchange and their associated clearing houses into a new entity.
That entity would be listed in the local market by September next year.
Mr Nottle said the Australian demutualisation brought a fundamental change to the management culture and ownership structure of the exchange.
The demutualisation separated ownership and trading rights, allowing more brokers to access the stock market.
It also allowed the management to run the exchange like a profit-making company to provide better services to its customers - the corporates, investment banks, fund managers and brokers.
'It allowed the ASX to compete with other exchanges and the over-the-counter market in Australia,' he said.