Friday June 6 2025
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: Australia
On 30th May 2025, the Australian Securities Exchange (ASX) proposed pricing policy for cash equities clearing, settlement and issuer services (CS services) that aims to enhance transparency for the market. The new policy is due to be finalised and take effect from 1st July 2025, and an updated draft was released as part of ASX’s response to feedback on a comprehensive consultation process that began in 2024.
A key component of the new policy is the introduction of the Building Block Method (BBM), a regulatory pricing model widely used across essential infrastructure sectors. The BBM calculates a maximum allowable revenue figure to provide the CS services and this in turn informs pricing. This methodology ensures charges are based on efficient costs and a fair return on capital, aligning pricing with the costs and risks of delivering the service.
The new policy also incentivises ASX to pursue efficiency gains by reducing operating costs over time. This efficiency scheme should strengthen stakeholder confidence in how ASX manages its operating costs. Under the new policy, annual pricing reviews and independent assurance processes will verify costs and returns, and any excess revenue will be addressed through rebates, fee reductions or targeted reinvestment into core systems and services.
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