ASIC has released its twice-yearly report and video on market integrity.

Report 501 Market Integrity Report: January to August 2016 is an overview of the work of ASIC's Market Integrity Group during this period. The Market Integrity Group is responsible for ensuring that Australia’s licensed markets are fair and efficient. Regulatory activity focuses on deterrence, setting standards and education, and behavioural change.

The report covers our review of the ‘cleanliness’ of the Australian listed equity market. The review found that information leakage and insider information ahead of material, price-sensitive announcements had declined over the past 10 years.

ASIC Commissioner Cathie Armour said, 'We have seen a gradual improvement in market cleanliness indicators over time and across different segments of Australia’s listed equities markets. ASIC will continue to monitor market cleanliness and enhance our surveillance and enforcement capabilities to ensure our markets are fair and efficient.'

Maintaining confidence in the integrity of our financial markets is vital. There were 15 enforcement outcomes during the six months to June 2016, including for insider trading – where criminal sentences demonstrated the seriousness of this crime.

ASIC also commenced civil penalty proceedings against Australia and New Zealand Banking Group Limited, Westpac Banking Corporation and National Australia Bank Limited alleging unconscionable conduct and market manipulation in setting the Bank Bill Swap Rate from 2010–12. These matters are currently before the courts.

In a review of the management of confidential information and conflicts of interests within investment banks and other market participants, ASIC identified a number of areas of concern. Firms have been asked to review their sell-side and corporate advisory practices to ensure they meet regulatory requirements.

Over the next 12 months, ASIC will focus on in the regulation of Australia's financial markets include cyber resilience, handling of confidential information and conduct risk.

Report 501 consists of a short video and webpage. Market intermediaries are encouraged to circulate the video and webpage to their staff to increase awareness of ASIC's actions and ongoing areas of focus.