ASX consults on new pricing policy for clearing and settlement services
17 September 2024 Australia
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Australia Securities Exchange (ASX) has released a consultation paper proposing a new pricing policy for its clearing, settlement, and issuer (CSI) services from 1 January 2025.
The new pricing policy will introduce the building block method (BBM), a pricing model used across regulated industries, to calculate a revenue requirement reflecting the efficient costs of ASX’s CSI services.
Through an annual review, the pricing policy aims to ensure that ASX recovers no more than those costs, including a “reasonable” return on investment commensurate with the commercial risks involved.
ASX said there will be no change to the structure or level of its CSI services prices upon commencement of the pricing policy.
However, the policy will introduce new processes designed to increase transparency and ensure that users are paying “no more than necessary” for the services.
ASX published the ‘Cash Equities Clearing and Settlement Services: Pricing Policy Consultation Paper’ alongside Q&A on 16 September.
Through the consultation paper, the public company seeks feedback on the key elements of the pricing policy, including reimbursement for excess revenues, and CSI services fee schedules.
ASX requests responses via an electronic form by 25 October 2024.
The new pricing policy will introduce the building block method (BBM), a pricing model used across regulated industries, to calculate a revenue requirement reflecting the efficient costs of ASX’s CSI services.
Through an annual review, the pricing policy aims to ensure that ASX recovers no more than those costs, including a “reasonable” return on investment commensurate with the commercial risks involved.
ASX said there will be no change to the structure or level of its CSI services prices upon commencement of the pricing policy.
However, the policy will introduce new processes designed to increase transparency and ensure that users are paying “no more than necessary” for the services.
ASX published the ‘Cash Equities Clearing and Settlement Services: Pricing Policy Consultation Paper’ alongside Q&A on 16 September.
Through the consultation paper, the public company seeks feedback on the key elements of the pricing policy, including reimbursement for excess revenues, and CSI services fee schedules.
ASX requests responses via an electronic form by 25 October 2024.
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