Video transcript for REP 501
Market integrity matters to all of us.
ASIC is responsible for ensuring Australia's markets are fair and efficient.
In this video, we highlight some of our activities so far this year, and our priorities for the next 12 months.
Insider trading is a serious crime, which ASIC is committed to pursuing and deterring.
Following an ASIC investigation, former Hanlong Mining managing director Hui Xiao was extradited from China to face court on insider trading charges.
Mr Xiao was sentenced to imprisonment for over eight years.
And after another ASIC investigation, Michael Hull pleaded guilty to insider trading and was sentenced to 17 months' imprisonment.
In early 2016 we took civil actions against ANZ, Westpac and the National Australia Bank for misconduct – between 2010 and 2012 – in connection with the Bank Bill Swap Rate.
These matters are currently being considered by the courts.
In August, we issued a report on our review of the 'cleanliness' of the Australian listed equity market.
We found that information leakage and insider information ahead of material, price-sensitive announcements has declined over the past 10 years.
This finding suggests that our efforts in deterring insider trading and raising standards are working.
In March, we reported on our first assessment of the cyber resilience of ASX and Chi-X.
We undertook this work to check the preparedness of these market operators to meet cyber threats.
Our report identified a number of emerging 'good practices' and has been widely cited by industry.
We asked firms to improve sell-side and corporate advisory practices to ensure they meet regulatory requirements, and we released a report aimed at improving industry practices.
Over the next 12 months we will continue to focus on significant issues facing Australia’s markets, including cyber resilience, the handling of confidential information and conduct risk.
Improved practice in these areas will improve the integrity of our markets, and that’s good for everyone.