Singapore Exchange Ltd.’s proposed takeover of ASX needs no modification, said Malcolm Starr, ASX’s head of regulatory policy, responding to concerns the deal may reduce the fairness of listings rules.

A merger of the two groups in no way undermines the Australian government’s ability to regulate the country’s stock market operations, Starr, executive general manager of regulatory and public policy, told Bloomberg News in a telephone interview today.

“The idea that an exchange business licensed by the Australian government can be managed in a way that somehow allows the operator to ignore the existing controls is unfounded,” Starr said. “There is absolutely no tweaking necessary to leave the Australian government completely in control of regulating how someone in Australia that it licenses conducts its business.”

 

The proposed merger already faces opposition from Australian lawmakers as well as scrutiny from the Australian Competition & Consumer Commission and other regulatory agencies. The country’s Financial Services Council, which represents fund managers, is concerned the merger may compromise listing rules, the Age newspaper reported today.

 

“Fair listings rules is something that every exchange around the world has to achieve or it won’t attract investors,” said Starr. “All exchanges around the world are trying to raise the bar to attract more asset managers from other regulatory environments.”