The Australian Securities and Investments Commission (ASIC) today released the results of its first assessment of the Australian Stock Exchange’s (ASX) market supervision role.
This initial report follows the introduction on 11 March 2002 of a Corporations Act requirement for ASIC to conduct an annual assessment of all market licensees, with regard to their obligations to operate a fair, orderly and transparent market.
‘The report follows a comprehensive review of the ASX’s arrangements by ASIC, and confirms that the ASX is operating a market of high integrity. The new requirement ensures that the ASX has an accountability to ASIC under the Corporations Act’, ASIC Deputy Chairman, Mr Jeffrey Lucy said.
The report covers both the ASX and ASX Futures markets, and concludes that each has suitable market supervision processes, including arrangements for handling conflicts of interest, monitoring the conduct of market participants and enforcing compliance with the Listing Rules.
ASIC’s report acknowledges the substantial resources the ASX has devoted to supervising its market. The ASX’s decision-making structures and the oversight role played by the ASX Supervisory Review Pty Ltd demonstrated its ability to handle conflicts of interest. The report also highlights the ASX’s reliable market infrastructure, including its systems and rules, and the strong commitment of staff involved in the ASX supervision.
In some areas, ASIC has requested and the ASX has agreed that further work would help bolster its already strong supervision arrangements.
Changes have been agreed, or are already underway, in relation to the supervision of warrant and futures markets, record-keeping of supervisory decisions, and coordination of its supervisory arrangements.
A copy of the report is available on ASIC’s website at www.asic.gov.au.
End of release