(Reuters) -Cboe Australia's application to operate as a listing market has been approved by the country's corporate regulator on Tuesday, enabling it to compete directly with the Australian Securities Exchange and other market operators.

Cboe, launched in Australia in 2011 as a competitor to the ASX, can now list new companies, offering Australian investors increased access to investment options such as initial public offerings and dual-listed foreign entities.

This decision aligns with the Australian Securities and Investments Commission's (ASIC) goal of fostering a competitive and robust local listing market, it said.

"Australia's capital markets are strong and resilient, but they must continue to adapt to evolving global market dynamics and meet the future needs of our economy," ASIC Chair Joe Longo said in a statement.

"This move will provide more choice for companies to list in Australia, build more links to offshore markets and create more options for investors," Longo added.

The move comes amid heightened competition in Australian equities markets, which has already led to reduced trading costs and broader access to products like exchange-traded funds (ETFs).

Cboe Australia currently has 20% of Australia's equity market turnover, representing almost A$2 billion ($1.32 billion) of trades each day, ASIC said.

($1 = 1.5119 Australian dollars)