Company Interview / Battle of the boards as Cboe gets tick of approval

Key points:

ASIC’s approval for Cboe Australia introduces increased market competition among exchanges National Stock Exchange focuses on micro caps and seeks to emulate the Canadian venture market model The takeover by Canadian Securities Exchange aims to facilitate dual listings Significant drop in ASX-listed companies raises concerns about market vibrancy and early-stage company support

Max Cunningham from National Stock Exchange highlights the significance of ASIC’s approval for Cboe Australia’s listing market application, signalling increased competition in the local exchange landscape. Cunningham welcomes the move, stating that more choice is positive for both companies and investors. He observes that the growing competition, particularly from Cebo, will primarily impact the mid-cap segment, while National Stock Exchange remains focused on serving micro caps that have often been overlooked by larger market operators like ASX (ASX:ASX).

Cunningham shares that National Stock Exchange is currently in the process of being acquired by the Canadian Securities Exchange (CSE). He identifies the Canadian model, especially its strong venture market for small-cap companies—minerals, technology, and life sciences—as a strategic template. The recent recognition of the Canadian Securities Exchange by ASIC should make it easier for dual listings, particularly for companies in gold, silver, and rare earths sectors to access Australian capital, and vice versa.

According to Cunningham, a concerning trend on the ASX is the decreasing number of listed companies, down from approximately 2,450 in early 2022 to around 1,850. He attributes this partly to private equity but also to declining new listings. Cunningham points to examples like Afterpay as evidence of missing opportunities in early-stage tech and resources sectors, areas National Stock Exchange aims to revitalise for investors seeking diversity and growth.