The corporate regulator stands ready to wield a new rule-making power over the ASX, to ensure its second attempt to rebuild CHESS is pro-competition by allowing new entrants seeking to offer similar post-trading services to directly plug into the new clearing and settlement system.

Calissa Aldridge, executive director of the Australian Securities and Investments Commission’s markets group, said a new law, passed by parliament on September 6, will allow ASIC to create a competitive environment for services provided after an equity trade is made, by ensuring the new Clearing House Electronic Subregister System (CHESS) makes it easy for rivals to enter the space and reduce costs for investors.