Despite the low level of companies deciding to go public, the Australian Stock Exchange has cemented its monopoly position, upping its fees and fending off competition from the rivals nipping at its heels.
A Commonwealth Bank investment note released today said it was shifting its rating from neutral to overweight, with the bank’s analysts inspired by what it called “fees, glorious fees.”
“ASX’s ability to raise fees on an industry facing significant volume declines and see off any threat from new entrants highlight the strength of its monopoly position,” the note said.
This chart shows ASX’s fees for market data compared to volume traded, as estimated by Commonwealth Bank’s research team.
“ASX has announced changes to its market data fees, with ASX Users and ASX24 Users fees to increase 22%, while ASX Non-professional fees to decrease 33%.
“Though ASX does not disclose the relative fee contributions of these items, we expect this will have moderately positive implications for ASX,”the research note said.