ASIC Supervision and Competition Cost Recovery for ASX and Chi-X Participants
As of 1 January 2012, a new market supervision fee model and cost recovery arrangement is in force to allow the recovery of costs from market operators and participants (ie. stockbrokers) for the supervision of Australia’s equities markets.
The new cost recovery regime, which was developed by Treasury and ASIC in consultation with industry, complies with Australian Government cost recovery guidelines. It will see the additional expenditure incurred by ASIC in relation to the cash equities markets from 1 January 2012 to 30 June 2013 recovered from ASX, Chi-X and their participants. In the past, the ASX supervised the market and recovered its costs through the fees it charged to market participants. As ASIC is now responsible for market supervision, it will recover those costs through market operators and participants directly.
ASIC’s supervisory costs in relation to participants of the ASX and Chi-X cash equities markets for the 18-month period, including the deferred costs associated with implementing market competition, are $22.81 million. The costs will be proportionally allocated to each participant to reflect the different drivers (ie. IT and non-IT costs) and based on the number of messages and the number of transactions . Participants will be charged quarterly in arrears, with ASIC sending invoice statements to each participant by post within 10 calendar days after the end of each billing period.
Further details on the process, including information on when payments will be required, the calculation of the quarterly fee, payment methods available and further background information can be found on the ASIC website.
ASIC takes this opportunity to thank industry for its contribution in the consultation process leading up to this change.