The Australian Securities and Investments Commission (ASIC) recently released a consultation package on the Australian equity market structure, which includes discussion and proposals around market developments and competition between exchange markets.
Consultation Paper 145 – Australian equity market structure (CP 145) sets out in detail what ASIC are proposing.
The proposals are in response to two main issues:
(1) Recent and likely market developments, with a focus on:
- extreme price movements;
- direct electronic access;
- algorithmic trading;
- best execution;
- pre-trade transparency; and
- market integrity measures.
(2) Competing exchange market operators in Australia, with a focus on:
- post-trade transparency;
- consolidation of market data;
- tick size;
- trades under market rules;
- trading during a trading halt; and
- trade confirmations.
Note: The consultation paper does not deal with the merger implementation agreement between the ASX and the Singapore Exchange, which has not yet been through the government, regulatory and shareholder approval processes, but any regulatory rules put in place relating to market exchanges will apply to all operators and participants in Australia.
Feedback on ASIC’s proposals should be submitted by 21 January 2011.
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