The Government has hailed yesterday's launch of a new securities exchange, Chi-X Australia, as an important move in the development of Australia as a financial services centre.
The introduction of a second equities market will create competition that will drive down fees and costs for 'mum and dad' investors, claimed Assistant Treasurer Bill Shorten in a joint statement with the Treasurer, Wayne Swan.
Shorten pointed to the reduction in brokers' costs for trading in the market in 2010-11, which amounted to "approximately $23 million of savings for industry participants".
The software trading firm IRESS announced that orders and trades were being successfully executed on the Chi-X using its technology, with 19 of the 22 brokers connecting to the new market yesterday morning utilising IRESS software.
IRESS managing director Andrew Walsh called the "smooth transition" of Australia to multiple-venue trading a "significant milestone".
However, not all commentators were enthusiastic about the introduction of a new market into Australia. AllianceBenstein head of Asia Pacific trading Emma Quinn warned that too many trading venues in Australia could make markets fragmented, leading to liquidity problems.
"Regulations are dictating that the only differentiating factor between the Australian Stock Exchange and Chi-X will be fee structure, but that there will be no cost benefits to the buy-side firms themselves," she said.
Australia’s second largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
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