This section contains information about the transfer of market surveillance powers from the Australian Securities Exchange (ASX) and other markets to ASIC.
- Market supervision regulatory priorities 2017–18
- Market integrity rules
- Market integrity reports
- Market Integrity Update
- Equity market data
- Cost recovery regime
- Markets Disciplinary Panel
- Market participants
- Australian Market Regulation Feed
- Breach reporting
- More information
On 1 August 2010, ASIC took over responsibility for supervision of real-time trading on Australia's domestic licensed markets. This supplements its existing responsibility for enforcement of the laws against misconduct on Australia's financial markets and its supervision of Australian financial services licence holders.
This followed the announcement about reforms to the supervision of Australia’s financial markets in August 2009 by the Treasurer and the Minister for Financial Services, Superannuation & Corporate Law, and the announcement by the Minister on 8 July 2010 of a 1 August 2010 start date for the transfer to ASIC of the market supervision role previously performed by ASX and other markets (IMB, IR Plus (formerly SIM VSE) and SSX (formerly APX)).
ASIC has assumed this important responsibility. We have an integrated market surveillance system in place and we have developed a streamlined markets analysis methodology and relationship management model. We have built and trained a quality Market Supervision team, consisting of ASIC talent and external people with specialist market experience. The team is complemented by ASX surveillance staff that transferred to ASIC on 1 August 2010. Practically, this means market participants will have more engagement with ASIC in their day-to-day operations. ASIC will become involved in potential market misconduct enquiries at an earlier stage than before.
ASIC is committed to market integrity and a fair, orderly and transparent market.
We have published a letter setting out our market supervision strategic priorities for 2017–18. It is intended to help you assess your firm’s risk management framework as part of a robust review process, and focus your compliance, supervisory and risk management efforts.
Market integrity rules
Market integrity rules for the ASX, ASX 24, IMB, IR Plus (formerly SIM VSE), NSXA and SSX (formerly APX) markets were released on 1 August 2010. Market integrity rules for the Chi-X market and for competition in exchange markets were released on 29 April 2011. We have also issued guidance on these market integrity rules.
ASIC publishes reports outlining key operational statistics and outcomes of its market and participant supervision functions and markets-related deterrence outcomes:
- Report released 20 April 2017
- Report released on 3 November 2016 | watch the video
- Report released on 4 April 2016 | watch the video
- Report released on 6 October 2015 | watch the video
- Report released on 12 March 2015
- Report released on 21 August 2014
- Report released 19 March 2014
- Report released 21 August 2013
- Report released 26 February 2013
- Report released 13 August 2012
- Report released 7 February 2012
- Report released 13 July 2011
- Report released 17 January 2011
Market Integrity Update
The Market Integrity Update is a free monthly newsletter about regulatory developments and issues affecting market intermediaries.
Equity market data
ASIC compiles data from all orders and trades in Australian equity market products for each quarter.
We provide data on market characteristics (including volatility), measures of market concentration and measures of market efficiency.
Cost recovery regime
The new Market Supervision and Competition Cost Recovery Regime provides a mechanism for the Government to recover the funding that it approved in 2009-10 and 2010-11 to cover ASIC's additional costs for:
undertaking its new regulatory functions following the transfer of market supervision and the introduction of market competition; and
the development of a framework to support market competition.
The new cost regime was developed by Treasury and ASIC in consultation with industry and complies with the Australian Government Cost Recovery Guidelines.
Consistent with the Cost Recovery Guidelines, ASIC has published a Cost Recovery Impact Statement.
- New billing arrangements for ASX and Chi-X participants
- Current and past cost recovery impact statements
Markets Disciplinary Panel
The Markets Disciplinary Panel is the main forum for disciplinary action for breaches of the market integrity rules. It is a peer review body, consisting of part-time members with relevant market or professional experience. The current members of the panel have senior roles in broking firms and investment banks.
- Find out more about the operation and membership of the Markets Disciplinary Panel
- Read Regulatory Giode 216 Markets Disciplinary Panel
There were minimal changes from 1 August 2010 to basic trading obligations or participant requirements. Market participants should contact ASIC about any queries relating to market integrity rules such as inquiries and information about market behaviour and supervision.
MPS Participant Compliance Team
MPS Participant Relationship Team
When an entity becomes a market participant, it should contact the MPS Participant Relationship team to establish a relationship manager for their entity. All other enquiries should be directed to contact ASIC or see contact details below.
To facilitate the monitoring of trading activity, each equity market operator is required to establish a network connection into ASIC's Integrated Market Surveillance System, and during the course of each trading day, provide a parallel data feed consisting of:
all orders, trades, and quotes being processed and disseminated by the market’s trading engine, and
all trading session and security price and status-related messages.
Find our more about the Australian Market Regulation Feed (including specification documents)
To self-report a breach of the market integrity rules, market participants should continue to use the existing section 912D process. Guidance on how to notify ASIC of significant breaches (or likely breaches) by AFS licensees under section 912D of the Corporations Act is set out in Regulatory Guide 78. Written breach reports may be:
lodged at any ASIC office, addressed to Stakeholder Services, Misconduct and Breach Reporting, ASIC; or
emailed to email@example.com.
To report a breach you can:
provide us with a written report.
- Retail client adviser accreditation and responsible executive examinations
- Equity market products allocated to the new block trade tiers