October 2014


Market Structure Partners was commissioned by a group of 10 Australian clearing participants, with significant market share in the Australian market, to produce an independent report to further the debate around transaction costs.

The brief for this report was to:

  1. Examine the costs of trading, clearing and settlement in Australia with particular regard to:
    1. Benchmarking against similar markets to those covered in the Oxera report, but to focus the scope on a wider selection of markets where there is more evidence of competition in clearing.
    2. Breaking out auction costs within the trading segment.
    3. Addressing the argument that economies of scale contribute to cost differentials.
  2. Provide a qualitative history of the evolution of a subset of markets to give some context to the different backgrounds in market structure and why differences in costs might arise.
  3. To focus on clearing costs and the clearing model; particularly to examine the conclusion that ASX can justify higher clearing fees because it has more of its own capital at risk than other clearing houses and that inter-operability increases costs.

Read the Report

Follow the link below to read and download the report for free:

Market Structure Partners – International Transaction Cost Benchmark Review – October 2014, Final Windows Version.