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ACCC won't intervene in ASX-SGX merger

ACCC won't intervene in ASX-SGX merger

The ACCC has revealed it does not intend to block the proposed merger between the ASX and Singapore Exchange.

The regulator won't oppose the acquisition of ASX Limited (ASX:ASX) by Singapore Exchange Limited.

A probe into the proposed deal determined that it would not lessen competition for trading facilities in Australia, or deter the entry to the market of potential competitors.

The focus of the investigation was whether the merger would deter the creation of alternative trading pools by trading facility operator Chi-X Global.

Chi-X Global plans to establish a “dark pool” - a trading facility where buy and sell orders are not disclosed - that will list ASX securities, in a 50-50 joint venture with Singapore Exchange.

Chi-X Global subsidiary Chi-X Australia also plans to establish a public trading venue which would compete with the ASX.

“The ACCC found that the joint venture relationship between Singapore Exchange and Chi-X Global would not alter Chi-X Australia's incentives to establish a lit trading venue in Australia,” chairman Graeme Samuel said.

“The extent to which the ASX would compete in relation to dark pool trading services is [also] limited [and] there are a number of dark pool providers who would continue to restrain a merged ASX/SGX.” he added.

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Tags Mergers and acquisitionsASXacccgraeme samuelASX:ASX

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