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.
The central bank has served up a disappointment for punters on Melbourne Cup Day.
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.