ASIC Market Supervision update Issue 1

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Welcome

ASIC has been supervising real time trading on Australia’s domestic financial markets since 1 August. The transition from ASX went smoothly. ASIC’s real time market supervision system and methodology have been implemented seamlessly and are generating alerts and identifying issues that we are investigating.

The new members to ASIC’s Market & Participant Team are integrating well and we are leveraging ASX knowledge and techniques together with our own.

ASIC market supervision road show

In July 2010, ASIC held market supervision road show presentations for market participants in major capital cities in Australia.

 

Watch the ASIC Market Supervision Roadshow

Key areas of interest for participant compliance

The ASIC Participant Compliance team is currently focusing on:

  • market integrity rules

  • unauthorised securities trading

  • discretionary managed account operation in breach of corporations legislation or ASIC class order

  • misleading and deceptive statements in participant marketing

  • non-compliance with excluded offer and sophisticated investor requirements in corporations legislation

  • compliance monitoring and adequacy of management supervision and supervision of representatives

  • compliance with MIRs such as staff trading, order priority and other topics to be determined.

Breach reporting

To self-report a breach of the market integrity rules, market participants should continue to use the existing s912D process. Guidance on how to notify ASIC of significant breaches (or likely breaches) by AFS licensees under s912D is set out in Regulatory Guide 78. Written breach reports may be:

There is no prescribed form for reporting a breach. However, you can:

  • use Form FS80 on our website at

    www.asic.gov.au/forms, for lodging written breach reports; or

  • you can report a breach (or likely breach) by giving us a written report.

You can also report breaches to Infoline on 1300 300 630.

Management structure and supervisory procedures

Market participants must have appropriate management structures in place to identify and manage risks. ASIC regards copies of the management structures previously submitted to ASX under ASX Market Rule 3.6.1(b) to reflect participant’s arrangements as of the first day of ASIC’s market supervision. By 1 November 2010, every market participant must give ASIC a copy of the up-to-date management structure.

More about management structure and supervisory procedures

Competition in market services

Subject to confirmation of Government policy by the newly elected Government, ASIC plans to be in a position to finalise a regulatory framework for competition in market services towards the end of this year or early next year.

ASIC intends to issue a consultation paper in September 2010 on the market structure and technological implications of competition in market services and a proposed regulatory framework for competition. ASIC will then consult and engage thoroughly with the industry.

More about competition in market services

Short position reporting data

CSV files of short position reporting data are now available from the ASIC website.

Download short position reporting data

Contact ASIC

Market participants should contact ASIC for market integrity issues and ASX for operational issues. Contact ASIC’s Market and Participant Supervision group on 1300 029 454 and you will have these voice menu options:

  • Option 1 for real time market matters

  • Option 2 for other market related matters

  • Option 3 for Participant enquiries or matters

  • Option 4 for Market wide announcements.

Or you can reach the Market and Participant Team by email market.participants@asic.gov.au, or through your relationship manager.

More about contacting ASIC about market supervision issues

For more information

Please see www.asic.gov.au/market-supervision

 

Last updated: 30/03/2021 09:35