ASX plans to sell fully underwritten new shares at A$30 each to retail and institutional investors, according to a statement. The company will use A$200 million to contribute additional equity to ASX Clear (Futures), the exchange’s clearing facility and central counterparty for securities listed on the ASX Trade platform. Unit ASX Clearing Corp.’s A$250 million of unsecured debt will be replaced with equity capital and the remaining funds used for future projects, the statement said.
ASX Chief Executive Officer Elmer Funke Kupper this year successfully won a battle to keep the exchange’s monopoly in the clearing and settlement of equity trades, is expanding its over-the-counter clearing service for interest-rate swaps and has cut fees to fend off competition in stock trading from Chi-X Australia Pty and dark-pool operators.
“ASX is one of the leading exchanges in the world and is making significant investments in Australia’s financial market infrastructure,” said Funke Kupper in the statement. “These investments support our ambition to be globally competitive.”
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