The Australian Securities and Investments Commission (ASIC) has enlisted former chief executive Greg Yanco to oversee the sale of alternative exchange Cboe Australia. This move underscores the regulator’s focus on the process’s importance for Australia’s financial markets. Sources familiar with the matter, who requested anonymity, indicated that Yanco’s appointment, after his mid-year retirement from ASIC, reflects the regulator’s need for more dedicated resources during the sale.
Cboe Australia operates as an alternative trading and listing venue, serving as the primary competitor to the Australian Securities Exchange (ASX). Cboe accounts for roughly 20 per cent of Australian share trading. It also lists exchange-traded funds and recently obtained a license to facilitate initial public offerings. Cboe Global Markets, its parent company, initiated the sale process for its Australian and Canadian divisions last month. Barclays is managing the sale on behalf of Cboe’s Chicago-based parent company. Cboe can also rely on former ASIC commissioner Cathie Armour, who is on its local board, as the sale process intensifies.
Potential buyers for Cboe Australia include large superannuation funds, private equity firms, and other global trading venue operators. Any acquisition will undergo close scrutiny and require ASIC approval due to Cboe’s role in critical market infrastructure. The sale occurs as the ASX faces legal action from ASIC and an inquiry into its governance and operating model. Cboe Global Markets’ chief executive, Craig Donohue, has committed to working closely with Australian regulators for “a smooth transition” of the business.
One ETF issuer, ETF Shares, recently shifted its products from Cboe to ASX, citing connectivity issues with broking firms. Its CEO, Cliff Man, stated the connectivity was “not good enough”. David Tuckwell, EFT Shares’ investment chief, suggested federal government intervention might be necessary to foster a viable ASX competitor. Cboe Global Markets bought Chi-X exchanges in Australia and Japan four years ago.
