Cboe Wins Nod to List IPOs in Australia, Ending ASX’s Monopoly

Australia’s corporate regulator has cleared Cboe Global Markets to list new companies on its local platform, breaking the Australian Securities platform’s long-held grip on the country’s listing business.

The approval, announced Tuesday by the Australian Securities and Investments Commission (ASIC), allows Cboe Australia — the local arm of the Chicago-based platform operator — to host initial public offerings and dual listings of foreign entities. It marks the first time in decades that ASX faces direct competition in its most lucrative market segment.

“This move will provide more choice for companies to list in Australia, build more links to offshore markets and create more options for investors,” said. The regulator added that increased competition had already assisted and expand access to platform-traded products.

Cboe Australia, which handles about 20% of the nation’s equity turnover — roughly A$2 billion in daily trades — told Reuters it was “pleased to have received the regulator’s approval.” The firm operates platforms in the U.S., Canada and the Netherlands in addition to its Australian venue.

Pressure on ASX

Shares in ASX Ltd. fell as much as 2% on Tuesday, touching their lowest level since mid-June, before closing down 1.35% at A$58.96. The broader S&P/ASX 200 slipped 0.3%.

The ruling deepens challenges for ASX, which is under regulatory scrutiny later than a string of technology failures and governance lapses. ASIC launched an investigation in June into the platform’s handling of a failed software overhaul that triggered repeated trade-processing errors.

The last month urged ASX to undertake “major cultural and governance improvements” following a 2024 trading settlement breakdown that disrupted market operations.

ASX, in an emailed statement, said it “supports markets” and pointed to its established record in capital raising. “Public markets play a critical role in supporting companies to opportunities, and we’re confident in the strong value proposition that ASX provides,” the company said.

IPO Market Revival

The regulator’s decision arrives amid a tentative revival in Australia’s IPO market later than a subdued 2023. Listings worth A$1.3 billion have been completed so far this year, up sharply from A$382.6 million at the identical point last year, according to LSEG data. However, most of the activity has been concentrated in two deals — Virgin Australia and Gemlife — which together raised nahead A$950 million.

For ASX, listings remain a key source of income. The platform earned A$208 million from listing fees in the last financial year, though IPO-related revenue slipped to A$18.9 million from A$20 million a year earlier.

Cboe’s entry into the primary listings market could chip away at that revenue stream, particularly if it attracts technology or dual-listed issuers viewking lower costs or greater international exposure.

Four platforms Now Licensed

With ASIC’s approval, there are now four licensed markets in Australia authorized to list securities: ASX, Cboe, the National Stock platform of Australia, and the Sydney Stock platform.

Cboe’s arrival as a full-service listings venue brings Australia’s equity landscape closer to that of North America, where multiple platforms compete for both trading and new listings. Whether it can translate that model into meaningful share in a market long dominated by the ASX will depend on how rapidly issuers and brokers embrace an alternative — and how smoothly Cboe’s own systems handle the pressure of Australia’s next large IPO wave.