Cboe Australia Pty Ltd (formerly Chi-X Australia Pty Ltd), a wholly owned subsidiary of Cboe Global Markets, Inc,  has received ASIC approval to expand its services to corporate capital raisings, effectively being in a position to become a third market option in Australia (alongside ASX and NSX). This marks a major step in increasing competition with the ASX, giving issuers and investors more choice for IPOs and dual listings. Cboe already accounts for about 20% of Australia’s equity market turnover, and its entry is expected to lower fees and broaden access. The new platform is scheduled to launch in the second half of 2025, with the exact date to be confirmed.

Listing requirements

Cboe’s consultation paper sets out a draft of the proposed listing rules to be adopted, with a view to key identified areas of listing eligibility criteria, continuous listing requirements and corporate governance to be based on a framework that improves transparency and reduces complexity. 

Cboe’s proposed listing rules will offer four listing methods including a Primary Listing (subject to admission tests described below), Cboe Exempt Listing (secondary listing for companies already primary-listed on another Cboe exchange), International Exempt Listing (secondary listing for entities listed on certain accepted overseas exchanges) and NZ Listing (secondary listing for NZX Main Board companies).  Companies will be able to seek a Primary Listing on Cboe with any one of the following:

• $30 million market capitalisation;

• $4 million in net tangible assets (after deducting capital raising costs);

• $750k operating profit before income tax (for the last financial year or in two of the last three financial years); or

• $10 million in total assets and revenue (for the last financial year or two of the last three financial years).

Cboe also intends to require lower thresholds for shareholder spread and free float than are currently required for companies seeking a listing on ASX.

We expect Cboe to require similar qualities to ASX in terms of business viability and track record; integrity, reputation and character of management; suitable corporate governance structures and practices (although certain governance expectations will be tied to market cap); and operational compliance to ensure systems and processes can ensure halts are minimised and announcements are made in a timely manner.

Well-positioned operator

Cboe already trades both its own market codes as well as ASX market codes (ASX does not trade Cboe codes). Approximately one in five trades made on ASX is settled through Cboe.

 With strong staffing, established offices, and the backing of a global exchange group, we will be closely monitoring Cboe’s entry into the Australian equities market.  Entities wishing to explore a potential listing on Cboe are welcome to contact us. for further information.