POWERED BY MOMENTUM MEDIA
Chi-X launch a 'smooth transition'
The Government has hailed yesterday's launch of a new securities exchange, Chi-X Australia, as an important move in the development of Australia as a financial services centre.
The introduction of a second equities market will create competition that will drive down fees and costs for 'mum and dad' investors, claimed Assistant Treasurer Bill Shorten in a joint statement with the Treasurer, Wayne Swan.
Shorten pointed to the reduction in brokers' costs for trading in the market in 2010-11, which amounted to "approximately $23 million of savings for industry participants".
The software trading firm IRESS announced that orders and trades were being successfully executed on the Chi-X using its technology, with 19 of the 22 brokers connecting to the new market yesterday morning utilising IRESS software.
IRESS managing director Andrew Walsh called the "smooth transition" of Australia to multiple-venue trading a "significant milestone".
However, not all commentators were enthusiastic about the introduction of a new market into Australia. AllianceBenstein head of Asia Pacific trading Emma Quinn warned that too many trading venues in Australia could make markets fragmented, leading to liquidity problems.
"Regulations are dictating that the only differentiating factor between the Australian Stock Exchange and Chi-X will be fee structure, but that there will be no cost benefits to the buy-side firms themselves," she said.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
