The Australian government on Wednesday granted Chi-X the license to operate an alternative securities exchange in Australia, effectively ending the 20-year monopoly of the ASX Group Ltd. Chi-X is owned by Nomura.

In its decision, Assistant Treasurer Bill Shorten said that market regulator Australian Securities and Investment Commission (ASIC) would draft the implementing rules to ensure a smooth operation of the two competing securities exchanges.

In early March, ASIC has already laid down ASIC laid down an indicative timetable for new market integrity rules.

With the emergence of electronic trading platforms, exchanges around the globe were forced to join the merger trend. Global exchanges which merged includes Deutsche Boerse which is bidding for NYSE Euronext, London Stock Exchange bidding for Toronto Stock Exchange parent TMX Group Inc and Singapore Exchange's failed $7.7 billion bid for ASX.

The government rejected Singapore's bid for the ASX citing national interest which had limited the options of the bourse when the current trend was consolidation.

Chi-X, a wholly-owned subsidiary of Chi-X Global Inc, got an in-principle market licence in Australia since last year. It originally targeted to launch its platform in October 2010 but the handover of powers to the regulators and the general elections last year delayed its launch.