MIU - Issue 175 - March 2026
Issue 175 of the Market Integrity Update is a special edition outlining ASIC’s expectations and guidance for market participants amid heightened market volatility.
Markets remain orderly and ASIC is actively monitoring market developments
Periods of market volatility can place extra pressure on trading, clearing and operational systems. Despite recent volatility linked to events in the Middle East, Australia’s financial markets have continued to operate in an orderly way.
ASIC is closely monitoring market conditions and is working regularly with our Council of Financial Regulators counterparts to share information and assess risks as conditions evolve.
Well-functioning markets are able to operate through changing conditions, including periods of high trading volumes and larger price movements.
Participant vigilance during heightened market volatility
Market participants play a critical gatekeeper role in supporting fair, orderly and resilient markets. In the current environment, we expect market participants to maintain a heightened focus on operational resilience, trade monitoring and surveillance and to be ready to act quickly to detect and deter misconduct, including:
- monitoring for trading activity that may manipulate prices
- overseeing the use of trading algorithms to prevent aberrant trading, undue market impact and operational strain beyond capacity limits
- monitoring client and proprietary positions for the build‑up of risk or signs of distress
- being well prepared for margin calls
- ensuring systems and IT infrastructure, including third‑party dependencies, are robust and have sufficient capacity
- monitoring the build-up of short positions, ensuring they are covered and accurately reported
- clear escalation, incident management and decision‑making processes
- timely and effective communication with clients during periods of market stress.
Given the impact of the current conflict on energy markets, ASIC is asking market participants to be especially vigilant for suspicious activity and potential misconduct in energy futures and derivatives. High volumes and sharp price movements can sometimes mask behaviour such as market manipulation.
ASIC’s ongoing supervision and engagement
ASIC remains actively engaged in market supervision and will continue to liaise with market operators and participants while volatility persists. We will proactively contact participants in both exchange traded and over-the-counter (OTC) markets to understand how markets, infrastructure, controls and processes are operating, and to identify any emerging pressures.
If participants identify concerns, they should contact ASIC promptly through their usual supervisory channels.
Market participants must report suspicious activity to ASIC as soon as practicable—this means when the activity is identified, not after it has been investigated. This is particularly important during periods of heightened volatility.
ASIC encourages ongoing vigilance to support the fair, orderly and resilient operation of Australia’s markets.