Minister for Financial Services and Superannuation Bill Shorten and Parliamentary Secretary to the Treasurer Bernie Ripoll today announced the variations to the APX’s market licence, integrity and operating rules and compensation arrangements.
According to its website, the APX allows growth-orientated companies from the Asia Pacific region an alternative to the Shanghai and Shenzhen stock exchanges through which to raise capital.
Mr Shorten said Australia’s financial services industry can play an important role in China, “for our mutual benefit”.
“This decision means that the Australian-owned APX market will offer stock market listing in Australia for Asian companies, with a particular focus on Chinese companies.
“This will improve access and increase opportunities for Australian investors, including superannuation funds,” said Mr Shorten.
Independent verification of the readiness of the APX’s market technologies will also be required before the exchange can begin operating – along with “confirmation that [the] APX has adequate financial and human resources to operate”, according to the joint statement.
“The APX market will provide Australian investors with greater choice when making the decision to invest and in what products,” said Mr Ripoll.
The changes to the market integrity rules for the APX, approved by the government, recognise changes to the APX market since the original rules were put in place
“The new industry-wide rules relating to protection against the risks of volatility from high-frequency trading, among others, were also incorporated,” said the statement.
The Australian Securities and Investments Commission (ASIC) will work with the AXP “to ensure all requirements are met and a smooth commencement of operation takes place”.
