ASX Competition Good For CFD Traders
The Minister for Financial Services, Chris Bowen MP, announced the Government’s support for competition between share exchanges in Australia. Chi-X, a leading global exchange, has had their licence approved in principal and it is anticipated that further rival exchanges will commence operating in Australia later this year.
CFD trading company IG Markets, Chief Executive Officer, Mr Tamas Szabo says “By the end of this year, the face of shares trading in Australia is likely to change forever. No longer will the ASX be the only exchange on which to trade Australian shares, traders will be able to shop around to find the cheapest prices and best liquidity offered by competing exchanges.”
“So, what does this mean for retail traders? Put simply, this will mean better prices and better liquidity and significantly lower fees to view live data than what is currently available today. For example, if a trader today wanted to buy BHP Billiton as a share CFD, IG Markets would offer a price that mirrors the underlying ASX exchange price. With the introduction of competing exchanges, the same CFD trader would be shown the best buy and sell prices across all exchanges, not just the ASX.”
