Brokers

Choosing a broker is an essential step towards operating in the APX stock market. APX brokers are professionals who buy, sell, and trade shares for clients. The main role of APX brokers is to complete any delivery and settlement of transactions required by the client. The tasks of APX brokers go well beyond this main role, however. For instance, APX brokers are also required to perform market analysis and build good relationship with clients.

APX Brokers

The APX market provides an opportunity for Australian Brokers to become involved with Australia’s newest ASIC regulated registered stock exchange. Some advantages of trading on this exciting new exchange include:

• The opportunity to enhance a broker’s portfolio with APX listed companies and other specialised APX products to offer their clients.
• Products listed on the APX follow different market trends and characteristics than those listed on the ASX which means they provide a good form of diversification in an investment portfolio.
• A ‘whole market’ Participant based model ensures that the market is easy to use. Mandatory research conducted by an independent research house ensures latest information and exposure for listees and allows broker to make an informed decision on each stocks merit.
• The APX model is cheap to use for brokers and clients with fees fully disclosed up front and no hidden or added costs.
• APX web based model easy to use and contains order tracking features which ensures each individual brokers adviser is kept up to date on where there orders stand in market.
• Exposure to new clients from Australia and abroad who wish to trade in stocks on the APX market. APX is a broker based market which means all clients who wish to trade on the exchange need to place their orders through one of APX’s registered brokers.

To become an APX broker you must first apply to APX and meet the requirements outlined below (a full list can be found in APX Business Rules Chapter 2). A new applicant must:

1. Be a financial services licensee who is authorised under that financial services licence to carry on business consistent with acting as an *APX broker; and
2. Have a board of *directors which includes two *directors who are *affiliates; or
3. Have one *director who is an *affiliate and the person who has ultimate executive responsibility for the *APX broking operations of the applicant must also be an *affiliate.
4. (a) any applicant who wishes to be recognised as an *APX broker (Property) must have at least one *director who is an *affiliate (Property);
   (b) any applicant who wishes to be recognised as an *APX broker (Fixed Interest) must have at least one *director who is an *affiliate (Fixed Interest);
   (c) any applicant who wishes to be recognised as an *APX broker (Equity) must have at least one *director who is an *affiliate (Equity);
5. The applicant must be a corporation incorporated in Australia.
6. The voting shares of the applicant carry one vote per share and otherwise confer identical voting rights on each security holder according to his shareholding. *APX may in its discretion waive this requirement.
7. Comply with and continue to comply with the capital requirements (Capital liquidity must be maintained at not less than $100,000 or 5% of the adjusted liabilities whichever is greater).
8. Have appropriate clearing and settlement arrangements in place;
9. Have Professional Indemnity insurance in place if trading on behalf of clients;
10. Pay the applicable application fee.

It is encouraged that before an application is lodged that you discuss your application for admission as an APX Registered Broker with the APX Broker Regulation Department. The pre-application discussion will clarify the admission requirements for APX brokers, the application process and your ongoing requirements as a new APX Registered Broker.

Application Process
Once discussions have been held with the APX Broker Regulation Department new applicants are required to complete and submit the relevant application forms for admission as a new APX broker. These include a Settlement Agreement form as well as a broker application form and can be obtained by contacting the APX Broker Regulation Department.

The APX Broker Regulation Department will then review the application to ensure it complies with the APX Business rules before preparing a submission supporting the application to the APX Adjudicatory Tribunal who will then consider the application.

Successful applicants
Upon successfully gaining admission as an APX Registered Broker, you will receive a copy of the APX Business Rules and a certificate of admission as an APX Registered Broker.

What if your application is rejected?
If an APX Broker Application is intended to be rejected APX notifies the person of their intention to reject the application and the reasons for this occurring. The applicant is then provided the opportunity to resolve the issues surrounding the rejection or if further aggrieved with the decision request a hearing with the APX Appeals Tribunal to address the reasons for the rejection

The following is a list of APX accredited brokers that are available to facilitate trading on APX: