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ASIC review prompts ASX changes

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By Reporter
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2 minute read

The Australian Securities Exchange (ASX) Group will make a number of changes to its operations, including compliance and settlement procedure, following an agreement with the corporate regulator.

Releasing the results of its annual assessment of the ASX licensees today, ASIC said that while it did not place qualifications on its conclusion that the ASX has “adequately met its obligations”, there are a number of areas the ASX must address.

The ASX Group has reportedly agreed to make various changes to its technology, monitoring and enforcement compliance and clearing and settlement activities.

Specifically, the group has agreed to make good on its obligation to have “sufficient technological resources to properly operate markets and clearing and settlement facilities” including an agreement to focus on the “processes of third-party vendors’ and vendor quality assurance practices when estimating the cost and duration of new projects”.

ASX will also make a number of changes to its compliance activity, including “exploring improvements to its processes and procedures around the operation of the ASX 24 futures market, considering listing applications from emerging market issuers, detecting fraudulent or unauthorised company announcements and ensuring that small to mid-cap entities comply with newly introduced capital raising rules”.

ASIC has also received an undertaking that the ASX will meet its continuing obligation to “provide fair and effective clearing and settlement services”.

In response to the statement, ASX spokesperson Matthew Gibbs told InvestorDaily the ASX and ASIC had come to a mutually agreeable arrangement and reflected on a strong record of compliance.

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“ASX welcomes ASIC’s finding that ASX Group met its statutory obligations to operate its markets and clearing and settlement facilities during the assessment period,” Mr Gibbs said.

“This is the 12th consecutive year since the introduction of annual assessments that ASIC has found that ASX has met its obligations.”

Mr Gibbs said the seven “agreed actions” to “further strengthen ASX’s arrangement…do not detract” from the overall conclusion that the obligations have been satisfactorily met.


 

ASIC review prompts ASX changes

The Australian Securities Exchange (ASX) Group will make a number of changes to its operations, including compliance and settlement procedure, following an agreement with the corporate regulator.

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