On 11 February 2015, the Assistant Treasurer announced that the Review of Competition in clearing Australian cash equities would be conducted by the Council of Financial Regulators (CFR) with the assistance of the Australian Competition and Consumer Commission (ACCC).
On the same day, the CFR released its Consultation Paper. This paper was prepared by the Australian Securities and Investments Commission, the Reserve Bank of Australia, the Treasury and the ACCC. The paper sets out the potential policy approaches for clearing Australian cash equities of competition and monopoly.
This review follows a 2-year moratorium on approving cash equity clearing licences by the former Government in February 2013, which resulted in all ASX-listed cash equities being continued to be cleared through the ASX.
The CFR conducted stakeholder meetings over a six-week consultation period. The closing date for submissions was 27 March 2015.