ASIC gets power to speed ASX rivals' approval

"This delegation will reduce red tape and better facilitate innovation by enabling industry to bring services and products to market quickly. ASIC is well placed to undertake these functions," she said in a statement.

"This change brings Australia into line with international best practice, placing financial markets, and clearing and settlement facilities on a more competitive footing with their international counterparts, including the UK and the US.

"This delegation is a further step by the government to ensure our regulatory system is well positioned to respond to innovation so that our financial sector can remain internationally competitive."

Chi-X Australia chief executive John Fildes said the move was "very positive [and I am] very supportive. This is good deregulation in that not every ASIC decision will now have to go to the minister for signature".

ASX spokesman Matthew Gibbs said the main benefit of the changes is that all market operators will get quicker approval of new products and services.

"The new arrangements streamline the regulatory approval process, enabling ASX to finetune rules and introduce new products and services with greater efficiency. This will benefit customers and users of our markets, including participants, listed companies and investors."

Numerous rivals to ASX have complained of years of delays in licence approvals.

New Zealand Stock Exchange set up AXE-ECN, a venue for making large individual trades, in 2006 and complained it was still awaiting a licence approval in 2008. It eventually shut the venture in 2011, citing a lack of "sustainable economic returns".

It took four years before Chi-X's application to become the first competitor to ASX was approved.

Sydney Exchange (formerly Asia Pacific Exchange) gained regulatory approval in 2014, five years after it applied in 2009.

Guidelines released with the transfer of powers say ASIC should try to speed up approvals.

"In exercising the delegated powers, the delegate will be subject to the same statutory timeframes as the minister for decision-making," the guidelines say.

"However, in order to enhance efficiencies, the delegate is expected to set more-expedient performance indicators for the execution of the delegated powers and periodically review the indicators."