ASX Group (ASX) welcomes today’s finding by the Australian Securities and Investments Commission (ASIC) that ASX has complied with its statutory obligations for the ninth consecutive year since the introduction of annual assessments. The assessment concludes that ASX has:
- adequate arrangements to monitor and enforce its operating rules;
- adequate arrangements to manage conflicts between its commercial interests and the need to ensure fair, orderly and transparent markets, and fair and effective clearing and settlement facilities; and
- sufficient financial, technological and human resources to properly operate its facilities.
ASIC’s annual assessment report, published today, covers the activities of all six ASX group licensees for the period 1 July 2009 to 30 June 2010, as well as some specific market events that occurred more recently.
The report contains nine areas of ‘agreed actions’ between ASX and ASIC to further enhance ASX’s arrangements. ASX will progress each of the nine areas and has initiated action on many of them as part of its normal program of operational improvement.
The agreed actions relate primarily to the deployment of ASX’s technology resources, the monitoring and enforcing of listing rules, and the development of a new set of performance measures that take account of ASX’s changed role following the transfer of market supervision to ASIC in August 2010.
Elmer Funke Kupper, ASX’s Managing Director and CEO, said: “ASX values ASIC’s independent assessment. It provides an external perspective that the ASX uses to improve its practices.
“ASIC is right to highlight the importance of technology for our operations. ASX will continue to invest in technology to ensure its customers have access to world-class products, services and systems.
“At the end of November ASX will launch PureMatch, its high speed/low latency order book, and in February2012 the company will open its new $36 million data and co-location centre. These are examples of ASX’s determination to provide for the needs of its customers and meet the demands of a competitive marketplace.”
ASIC’s assessment follows the Reserve Bank of Australia’s (RBA) annual assessment of ASX’s licensed clearing and settlement facilities, published on 7 October 2011. RBA found that all four clearing and settlement facilities operated by ASX complied with the relevant Financial Stability Standards and did all other things necessary to reduce systemic risk in the 2010-11 financial year.necessary to reduce systemic risk in the 2010-11 financial year.