The ASX Could Be In Trouble For Setting Its Trade Reporting Fees Too Low

The ACCC has begun formally investigating the ASX’s recently reduced trade reporting fees after complaints from rival exchange Chi-X.

John Durie of the Australian reports that the ACCC is looking at the fee that the ASX and Chi-X charges firms for reporting trades that take place on other exchanges or in dark pools.

The investigation was flagged by the Australian Financial Review in May, which noted that the ASX had lowered its trade reporting fees from $8000 to $1000 – a price believed to be “uneconomical” for Chi-X.

“The ASX has received a notice from the ACCC to which we are cooperating fully,” an ASX spokesman told Business Insider today.

The ACCC declined to disclose details, stating only that it did not comment on investigations.

Capital Markets CRC this week reported that the ASX had lowered fees by a total of $7.8 million since Chi-X ended its monopoly in October 2011. “Services such as the opening and closing auctions (which did not face competition) experienced no reduction in fee,” researchers found.

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Now read: CHARTS: Australian Traders Are Saving $215m A Year From The ASX’s Monopoly Ending

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