ASIC today announced it has acquired an integrated market surveillance system (IMSS) that will analyse activities and trends in market data, identify suspicious trading activity, and raise alerts.

The IMSS will be provided by the successful tenderer SMARTS Market Surveillance Pty Ltd (SMARTS) and is to be installed for 1 July 2010.

The appointment follows the Federal Government’s decision in August 2009 that ASIC assume the market surveillance function from the Australian Securities Exchange (ASX). As a result, monitoring of real time trading on Australia’s domestic licensed markets will be assumed by ASIC during the third quarter of 2010.

ASIC Commissioner Belinda Gibson said, ‘ASIC is well advanced in our planning for the transfer of market supervision powers. The procurement of the IMSS is an important milestone in the transition and will underpin the streamlined markets analysis methodology and relationship management model ASIC has developed to monitor and engage market participants.

‘The IMSS will support the new markets surveillance team, which ASIC has built from existing staff and new hires from ASX, supplemented with talent from the market.

‘ASIC’s objective is to ensure a seamless transition of the supervision responsibilities with minimal disruption to participants. We are committed to market integrity and a fair, orderly and transparent market,’ said Ms Gibson.

SMARTS is the global leader in market surveillance systems with expertise built over 15 years.

The IMSS procurement was conducted through an open tender process. The system will be externally hosted by the successful tenderer for an initial period of two years with an option for a further two six month periods.