Insider trading and market manipulation
A speech by ASIC Chairman, Tony D'Aloisio, Supreme Court of Victoria Law Conference, Melbourne, 13 August 2010
Thank you very much for inviting me along today to speak to you about insider trading and market manipulation...
My objective will be to provide the ASIC perspective in this area. ASIC is the regulator responsible for detecting, investigating and taking action; for example, for civil penalties and for delivering briefs to the Commonwealth Director of Public Prosecutions (CDPP) for criminal proceedings. ASIC can also seek enforceable undertakings and take administrative actions (e.g. bannings).
Until 1 August 2010, ASX had ‘front line’ responsibility for broker or market participant oversight and surveillance. That responsibility, from 1 August, passed to ASIC. One of the benefits should be to speed up the process between detection and, in cases which warrant it, investigation and enforcement. In saying that, it is important to note that ASX carried out the 'front line' surveillance work very well. The move to ASIC was driven more by removal of potential conflicts of interest between ASX’s role as a listed company and the supervision of the market on which it is listed, particularly if we move into competition for trading services.
In giving you ASIC’s perspective, I will be doing so largely at an ASIC policy level, focusing on the issues which we are dealing with and our approach and priorities.