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From ASX CEO Plans to Accelerate Shift to One-Day Equity Settlement

How could the ASX's drive for international standardization affect Nasdaq?

Possible What happens if… A possibility worth considering, not a forecast.

ASX's push for global standards may increase competition for listings Anthony Attia, the new CEO of the ASX, is driving initiatives to transform the exchange into a large, successful, and competitive entity. This includes expediting the transition to one-day cash equity trading settlement (T+1), aligning Australia with the United States and other major exchanges. By modernizing its operations and improving the attractiveness of its listing business, the ASX increases its appeal to international capital and companies seeking listing venues, thereby intensifying competition in the global market for capital that Nasdaq also serves.

Reported by 1 independent outlet Written Oct 18
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How it reaches Nasdaq

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The facts so far

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  • Anthony Attia aims to transform ASX into a large, successful, competitive exchange.aol.com
  • Attia wants to expedite the transition to one-day cash equity trading settlement, aligning with the United States.aol.com
  • The US has had T+1 for two years.aol.com
  • ASX's cash equity trades have settled on a two-day basis in CHESS since 2016.aol.com

Why it matters

The ability of an exchange to attract and retain capital is fundamental to its financial health and market relevance. For Nasdaq, a global leader in electronic trading and IPOs, increased competition from a modernized ASX means that the exchange must continually justify its value proposition to international issuers and investors.

This move comes after the ASX faced intense scrutiny and regulatory fines due to delays and cost blowouts during its previous infrastructure upgrades. Attia's mandate is not just to fix past issues, but to fundamentally change the culture and ambition of the ASX to compete in a rapidly evolving, global financial industry.

What we don't know yet

  • How quickly can the ASX successfully implement the T+1 settlement without further operational issues?
  • Will the ASX's improved competitiveness be enough to draw significant listing volume away from established exchanges like Nasdaq?

What would change this answer

The ASX successfully completes its technology overhaul and achieves T+1 settlement on schedule.This would make the competitive threat to Nasdaq more immediate and concrete, increasing the likelihood of capital migration.
Global regulatory bodies impose stricter requirements on all exchanges regarding settlement times and infrastructure.This could raise the barrier to entry for all exchanges, mitigating the competitive advantage gained by the ASX.

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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.