In the wake of a new stock exchange entering the Australian scene fears have emerged that the cost of trading shares could double.
The Australian Financial Review says stockbrokers will meet Treasury officials today to discuss concerns that increased regulatory payments could offset the benefits of competition.
Approval for Australia’s second stock exchange, Chi-X, is expected from the Australian Government at the end of October.
However, the paper reports that the industry will be slapped with $18 million of fees per year to cover the costs of regulation by the Australian Securities and Investments Commission.
While Chi-X will cover $3 million of this amount under the proposed plan, the AFR says brokers have threatened to pass the remaining $15 million in costs onto investors.
In the 2011 financial year ASX reported a net profit of $352.3 million.
