Reforms to the supervision of Australia’s financial markets

Reforms to the supervision of Australia’s financial markets

The Australian Securities Exchange (ASX) acknowledges the announcement by the Australian Government today that the Australian Securities and Investments Commission (ASIC) will assume responsibility for the supervision of real-time trading on Australia’s domestic licensed markets.

The change will mean that the supervision and enforcement of market participants currently performed by ASX and the independent Disciplinary Tribunal will become the responsibility of ASIC once the proposed legislation is passed by the third quarter of 2010. Importantly, ASX will retain responsibility for the supervision of entities listed on the market it operates.

ASX believes the timeframe and next steps outlined by the Government are appropriate, and will work constructively with the Government and ASIC to implement the transfer of responsibilities.

ASX notes that the Government has foreshadowed that this reform is a necessary step before any further consideration of outstanding market licence applications can take place beyond the third quarter of 2010.