Australia’s equity capital markets are slipping behind global competitors on market value, shares traded and foreign listings. That trend is unlikely to change while the ASX is fixing its monopoly clearing and settlement system.
The decline in the international competitiveness of Australia’s equity capital markets over the past decade looks certain to worsen as the ASX’s upgrade of its clearing and settlement system pushes back necessary reforms to market structures and practices.
Almost a year and a half after ASX dumped its attempt to replace the CHESS clearing and settlement system, it is clear that the negative consequences of this software upgrade debacle will go far beyond the $250 million write-down borne by ASX shareholders.
Tony BoydContributorTony Boyd is the former Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter. Email Tony at tony.boyd@afr.com
