The Australian Securities Exchange (ASX) has said it is engaging in discussions that will cut its clearing fees for cash equities, as long as the current market structure for equities clearing is extended for five years.
ASX, which is Australia’s sole provider of cash equities clearing services, is consulting with its customers alongside a review by the Council of Financial Regulators about the market structure for cash equities clearing and settlement. The review is expected to be completed in the first half of this year.
A tiered clearing fee structure has been suggested, which will apply to all customers in the event that the Council recommends, and the Government accepts, a five-year extension to the Code of Practice that ASX established in August 2013.
The current pricing is 0.25%. The new fee schedule begins at 22.5 basis points for values up to A$3 billion per day. It then ratchets down on a sliding scale, to 10 basis points for values of over A$5 billion.