Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, has welcomed today’s release of the Australian Securities and Investments Commission (ASIC) annual assessment of the Australian Securities Exchange (ASX).
The assessment report, which ASIC must complete under the Corporations Act 2001 and covers the period 1 July 2006 to 30 March 2008, found that ASX had adequate arrangements in place to supervise the markets, including clearing and settlement facilities and for the management of conflicts of interest. However, the ASIC report also contained 10 areas for improvement that ASX has agreed to implement.
“I note that for the first time ASIC’s recommendations to ASX are presented as ‘Agreed Actions’. This shows a concerted effort by both ASIC and ASX to quicken their response times to emerging issues in financial markets, and I welcome this,” Minister Sherry said.
Recommendations and agreed actions include that there be additional certification of supervisory expenditure, there that there be actions to change procedures for settlement delays and that additional steps be taken to ensure the management of conflicts of interest remains adequate in future.
“Financial markets have experienced a significant turnaround this year and regulators have done a solid job in difficult times. A well funded and transparent approach to market supervision is a critical component of a well-ordered market,” Minister Sherry said.
The report also covered the Sydney Futures Exchange (SFE), which ASIC also found to have adequate arrangements in place.
The report was extended past the normal reporting date to allow ASIC to take into consideration ASX’s response to the market volatility earlier this year.
For the first time the report was a consolidated assessment covering all ASX Group companies, including ASX and SFE, plus Australian Clearing House Pty Ltd, ASX Settlement and Transfer Corporation Pty Ltd, SFE Clearing Corporation Pty Ltd and Austraclear Ltd.