Registry Contest Heats Up
Sydney Morning Herald
Monday December 3, 2001
The legal action is over but the rivalry between Computershare and ASX Perpetual Registrars, a joint venture between the Australian Stock Exchange and Perpetual Trustees, shows no signs of abating.
In the past fortnight ASX Perpetual has begun moving the registers of about 80 clients to its new oscar computer system while announcing senior ASX executive John McMurtrie will take over from current chief executive Richard Atkinson in January.
The migration of ASX Perpetual clients to oscar due to be finished by December 31 means the fledgling share registry business will no longer rely on Computershare's system and marks the beginning of ``pure competition" between the two businesses.
``It will give us more flexibility," Mr Atkinson said. ``Oscar will be a central part of our ability to win new business.
``Before, whenever we wanted to change anything about the system, we were beholden to Computershare, our rival.
``Now we are on our own and issuers will have a real choice for the first time."
Industry observers say the decision to appoint Mr McMurtrie a member of the ASX senior executive council and, at one stage, a widely tipped candidate to succeed ASX managing director Richard Humphry is a sign of how seriously ASX and Perpetual are treating the business.
With the new technology bedded down, Mr McMurtrie will pursue a more ``entrepreneurial and aggressive" strategy , according to an ASX source, aimed at expanding its 35 per cent share of the local share registry market at Computershare's expense.
Analysts say the early part of 2002 will decide whether ASX Perpetual's new system and aggressive strategy will win new clients in a highly competitive, low margin business.
© 2001 Sydney Morning Herald