Incumbent monopolies often dismiss a new system as a minor threat but monopolistic behavior is about protecting market share and crushing competition by all means. I believe you are correct about dot point 3. Long term investors, you know the ones, who stupidly back a company and its business only to be thwarted at every turn by these very practices that seek to transfer wealth to a bunch of dodgy protected vested interests, have no way to fight back because the organizations tasked with protecting shareholders are either underfunded or in some cases profiting themselves.
How many people tell you they would never invest in the sharemarket as they don't trust it, with good reason. The only way to fight back and get fair price discovery not manipulation is to give investors a choice and I know which system 100% of long term investors will choose to advocate for. Yes advocate, by ringing your broker and demanding he give you the choice or bye bye. Finally we may get some trust back in the market for retail investors which would lead to funds flowing in.
That brings us to why companies may want this system. Wow were do I start. ASX Insights research was damning in its analysis of value destruction on targeted companies of the illegal but tolerated practices. In their example ,one of 50 companies they researched, over a 4 year period 57% of the decline in shareprice was achieved with 0.7% of the total volume. Would companies like these practices to stop? Certainly the majority of companies are run to succeed and boards/managements are seeking to grow there companies and their own reputation. There will always be dodgy executives but this system will be designed to find them out I believe. Shareholders may start to ask questions if they stay with the old.
John Karantsis understands the frustrations and mood of companies and long term investors and has designed a system for them to embrace. ASX and their shareholders can talk NSXA down all they like but if you don't understand that the people that you are supposed to be protecting are sick and tired of seeing this dodgy behavior day in day out you really need to take a reality check. Instead ASX shareholders should be questioning wether there board is sending them down the rabbit hole like these geniuses
IBM: "There will only ever be a need for100 computers."
DEC: "No one would ever buy a personal computer."
BLOCKBUSTER: "People don't want to watch films over the internet."
NOVELL: "Our technology is much more sophisticated than Microsoft."
BOOKSTORES: "People want to pick up and handle the books,
not read them on the computer."
SONY: "Beta technology is far superior to VHS."
LOTUS: "Our spreadsheet is far superior to Microsoft even if it is complicated."
NOKIA: "Our phones are the world standard, even if they are proprietary."
TOWER RECORDS: "People want to own their own music, not rent it online."
BLACKBERRY: "Our security is what companies want, they won't let Android or iPhones on their network, even if our stuff costs more."
KODAK: "People will always prefer film cameras, even if we invented digital ones."
I'll add a bunch of others later
How long will it take to add the ASX to the list. And to think they could have partnered with ISX, ASX shareholders need to ask why they chose a different path.
