Aggregated News From Investment Management Regulators

ASIC sets expectations for maintaining equity market resilience

Report/Flag

Please complete the required fields.



ASIC has outlined its expectations for all market participants to act appropriately to ensure Australia’s equity markets remain resilient.

In a letter published today [14 May, 2020], all equity market participants are requested to take reasonable steps to ensure the number of trades matched from their orders:

  • are capable of being handled by their internal processing and risk management systems and, if applicable, their clearing and settlement operations; and
  • support the fair and orderly operation of Australian equity markets.

Directions issued to nine large equity markets participants to limit the number of trades executed each day have also been revoked. This is due to:

  • enhancements to trade processing made by market operators and the clearing and settlement facilities;
  • the positive actions taken by these participants to reduce their number of executed trades, which has contributed to more efficient settlement preparation and reduced failure rates;  and
  • the stabilisation in overall trading activity.

ASIC will closely monitor the behaviour of participants and take further action where necessary. ASIC will also undertake a review of the broader trends in trading activity, and where appropriate consult with industry on any proposed regulatory changes.

Background

On 13 March 2020, the equity market exceeded the number of trades that could be reliably processed on a single day.

To manage the risk to the market system, ASIC issued directions on 15 March 2020 (under the ASIC Market Integrity Rules (Securities Markets) 2017) to nine large equity market participants, requiring those participants to limit their number of trades executed each day until further notice (refer to ).

Source link

Regulator Information

Abbreviation: ASIC
Jurisdiction: Australia

Recent Articles

SEC Approves Registration of First Security-Based Swap Data Repository; Sets the First Compliance Date for Regulation SBSR

The Securities and Exchange Commission today announced that it has approved the registration of its first security-based swap data repository (SDR).

Regulation for a different world

Speech by our CEO, Nikhil Rathi, delivered at Association of Foreign Banks – CEO Programme 2021 – The UK Regulatory Landscape Post-Brexit and Beyond.  Speaker: Nikhil...

Keynote speech by the Chairman of the FSMA at a high-level conference on sustainability reporting organized by the European Commission

On Wednesday, 6 May 2021, Jean-Paul Servais, Chairman of the FSMA and Vice Chair of IOSCO, gave a speech at a major conference of...

Credit Suisse Bonds / Suisse Capital Wealth Bonds (Clone of FCA authorised firms)

Fraudsters are using the details of firms we authorise to try to convince people that they work for a genuine, authorised firm. Find out...

www.myinvestmentoptions.co.uk

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Get the latest from Regulatory.News in your inbox!

×