The Australian Financial Markets Association (AFMA) has welcomed ASIC’s guidance issued today to equity market participants in relation to the volume of share trading, setting out its expectations for all market participants to act appropriately to ensure Australia’s equity market remains resilient.
ASIC’s related decision to revoke its directions to nine large market participants to limit the number of trades they executed each day is timely and will remove an artificial and ad hoc constraint on market transactions.
AFMA acknowledges the steps taken recently by market participants, ASX and Chi-X to ensure that the equity market remains resilient during periods of exceptionally high volume trading.
The Australian equity market is highly regarded, both as a source of capital for Australian companies and as a venue for investors to trade listed shares. This supports the national economy.
