Treasurer Scott Morrison said the government is absolutely committed to open and competitive markets which are “fundamental to a vibrant 21st century economy”.

“(It) will mean that, should a competitor to the ASX emerge, there will be arrangements in place for safe and effective competition, allowing for a transition to competition over a period of around 18 months,” Morrison told reporters in Sydney on Wednesday.

The changes reflect recommendations of the Council of Financial Regulators, which comprises the Reserve Bank, Treasury, the Australian Prudential Regulation Authority and the Australian Securities and Investment Commission.

The treasurer also responded to a recommendation from the financial system inquiry that would relax restrictions on the ASX to allow it more flexibility in raising capital.

He said the ASX’s willingness to invest and trial new technologies is strongly supported by the government and is consistent with its financial technology or FinTech agenda.

“I want to help create an environment where our financial services sector can be both internationally competitive and play a central role in aiding the positive transition of our economy,” Morrison said.

AAP