"The Australian Competition and Consumer Commission will not intervene in a joint venture proposal between the Australian Stock Exchange and Perpetual Trustees Australia Limited (Perpetual)", ACCC Chairman, Professor Allan Fels, said today.
The ASX will take a 50 per cent shareholding in the share registry division of Perpetual, Perpetual Registrars Limited, which is a wholly owned subsidiary of Perpetual. Following the joint venture, PRL will change its name to ASX Perpetual Registrars Limited. APRL will provide registry and related services. "The ACCC initially expressed concern that the ASX's control of the CHESS system could place the joint venture in a position of advantage over other competitors in the share registry market", Professor Fels said.
"However these initial concerns have been addressed by the parties through undertakings provided to the ACCC. "The undertakings provide that: The ASTC will not structure CHESS fees, or terms and conditions associated with the provision of CHESS services, in such a way as to significantly discriminate between users of CHESS services, depending upon whether or not they utilise the share registry services of APRL.
The ASX and ASTC will take all necessary steps to ensure that the relationship between APRL and ASTC is carried out on an arm's length basis. The ASX and the ASTC will make information about CHESS interface requirements, and the CHESS Procedure Guidelines readily available to users of CHESS and providers of share registry services".
These undertakings can be viewed in full on the ACCC website at www.accc.gov.au. CHESS is the clearing and settlement system for virtually all market transactions in ASX securities. CHESS is operated by the ASX Settlement and Transfer Corporation Pty Ltd that is a wholly owned subsidiary of ASX. CHESS is currently the only securities clearing house recognised by the Corporations Law.