ASIC Market Supervision Update issue 10

Other updates

ADA renewal program

ASIC has now commenced its accredited derivatives adviser (ADA) renewal program. ASIC will not require accredited advisers to sit a renewal examination as part of the 2011 renewal process.

To renew the accreditation of existing accredited advisers, market participants will be required to submit an application for renewal to ASIC within the prescribed renewal period.

An application renewal pack has been prepared to assist participants with this process. Participants may lodge their completed renewal application pack with ASIC any time during the renewal period. Renewal application packs received after the last day of the renewal period, or those received prior to the last day but without all required information (including completed privacy consent forms), will not be processed.

Accredited advisers that are not nominated for renewal by a market participant during the renewal period will cease to be an accredited adviser as of the renewal date.

Participants will receive written notice of successful renewals after the renewal date.

  • The renewal period for the 2011 renewal process is 2 June 2011 to 25 July 2011.
  • The renewal date is 1 August 2011.

Questions about the 2011 renewal process should be directed to market.participants@asic.gov.au or by calling the ASIC Market and Participant Supervision team on 1300 029 454.

Automated order processing spikes

With increased market use of automated trading, ASIC is concerned with participants’ ability to maintain fair and orderly markets. Market participants should consider improved testing of automated order processing systems and algorithms to avoid spikes, and better programming to avoid loops.

ASIC continues to see issues with orders generated by algorithms causing market spikes and disorderly trading. Some of these issues are caused by poorly programmed algorithms and inappropriate filters. These matters have been assessed by ASIC’s deterrence team and in some cases referred to the Market Disciplinary Panel.

ASIC has raised this issue directly with market participants and also sought feedback on algorithmic trading and electronic access via Consultation Paper 145. ASIC will consult further with the industry with a view to introducing rules and guidance around how new algorithms should be implemented.

 

ASIC at Stockbrokers Association of Australia’s conference

 

ASIC Commissioner Shane Tregillis and Senior Executive Leader, Market Participants & Stockbrokers, Greg Yanco presented at the 2011 Annual Stockbrokers Conference in Sydney on 26 and 27 May. Shane discussed dark pools, high frequency trading and competition.

Greg gave an overview of supervision activity and discussed key issues such as information security, market integrity and market surveillance technology.

 

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.

 

For more information

 

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

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ASIC's Market supervision update is a periodic eNewsletter from the Australian Securities & Investments Commission, 100 Market Street, Sydney, NSW, Australia, 2000. You are receiving this because you asked to be put on the mailing list.

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Last updated: 30/03/2021 09:35