Today ASIC published its seventh report on the supervision of Australian financial markets and market participants.

Report 386 ASIC supervision of markets and participants: July to December 2013 (REP 386) highlights the volume of market and participant-related outcomes achieved by ASIC in the second half of 2013. Key outcomes include:

• 19,255 trading alerts produced

• 102 market inquiries conducted

• 31 matters referred for further investigation

• 16 risk-based assessment visits conducted

• 73 surveillances completed

• 26 instances of pre-emptive supervision action

• seven enforcement outcomes for insider trading offences

• seven infringement notices issued by the Markets Disciplinary Panel.

ASIC Commissioner Cathie Armour said the results were testament to the significant energy dedicated by ASIC, and in particular its Market and Participant Supervision team, to the supervision and surveillance of Australia’s financial markets.

‘This report shows that our tailored financial markets surveillance continues to achieve strong results. These results are crucial to the further strengthening of investor confidence in the integrity of our markets,’ Ms Armour said.

Greg Yanco, Senior Executive Leader of the Market and Participant Supervision team, said that ongoing dialogue with stakeholders, and a facilitative approach where appropriate, has allowed for swift corrective action when things do go wrong.

‘We continue to encourage market participants and securities dealers to work with us in addressing any concerns or trading issues,’ Mr Yanco said.

‘Our new market surveillance system also allows ASIC to better detect, investigate and prosecute trading breaches.

‘Our analysts can now use the system to develop and modify alerts that take into account changing market circumstances, as well as calibrating alerts more dynamically.’

Download
REP 386

Background

ASIC is responsible for the supervision of Australian market licence holders. We conduct real-time surveillance of equities trading on the ASX and (since 31 October 2011) Chi-X markets, and we supervise compliance in those markets with the Corporations Act 2001 (Corporations Act) and ASIC market integrity rules. We also seek to ensure that Australian financial services licence conditions are met by market participants and securities dealers.

We assumed responsibility for market supervision and real-time surveillance of trading from ASX on 1 August 2010. This now includes supervision of Chi-X Australia, which commenced operations on 31 October 2011. ASIC supervises compliance with market integrity rules, compliance with the Corporations Act and ensures that Australian financial services license conditions are met by market participants.