The Australian Securities Exchange

What was the client issue?

In February 2013, the Australian government decided to wait two years before making a decision on any cash equity central counterparty (CCP) licence applications. With LCH.Clearnet Ltd waiting in the wings, ASX, the current sole provider of clearing services for cash equities traded in Australia, committed to a code of (good) practice including a promise to commission an independent global benchmarking study of its clearing and settlement services. 

How did we help the client solve it?

Taking a well-established user-profile approach, we compared the costs of using the ASX’s clearing and settlement services against the costs of using services provided by financial market infrastructures (FMIs) across Asia-Pacific, Europe, and the Americas. We analysed the costs for a range of investors and brokers active in the Australian cash equity market, building on the approach we used in similar studies for the Brazil Stock Exchange and Euroclear UK and Ireland.

Why was the outcome compelling for the client?

Answer from Elmer Funke Kupper, CEO at the Australian Securities Exchange
Oxera’s international cost benchmarking report on equities clearing and settlement services in Australia has made a valuable contribution to the debate on an important public policy issue. Their thorough and well-presented analysis helped cut through several complex issues. This provides confidence in the robustness of their conclusions.