Annelies Van Dam’s Post

ASX Limited has paid a $1,050,000 penalty for an order information transparency failure, the first time ASIC has issued an infringement notice to a market operator. We had reasonable grounds to believe ASX breached the market integrity rule requiring pre-trade transparency on 8,417 occasions over April 2019–December 2022 due to an incorrect system configuration. Pre-trade information is important because it assists with price formation, aids liquidity, enables investors to assess investment opportunities and value listed companies. We consider ASX’s conduct was serious, going undetected until it was reported to ASX by a market participant. On at least two occasions before 22 December 2022, ASX could have – but did not – identify the issue. ASIC Chair Joe Longo said, ‘Technology and operational resilience for market operators is a strategic enforcement priority. ASIC will continue to take action to ensure that market operators and market participants have robust systems, controls and technological infrastructure in place to support Australia’s capital markets.’ Read more https://bit.ly/3V2bvu0 #markets #enforcement #CapitalMarkets

The Australian Securities and Investment Commission (ASIC) has levelled accusations of making misleading comments at Australia’s largest share market operator, ASX Ltd, in relation to its Clearing House Electronic Subregister System (CHESS) replacement project. These allegations concern statements by the ASX in February 2022 that the project was “on-track for go-live” and “progressing well” for its slated launch in April 2023. ASIC says those statements were misleading as the project was not on schedule at the time the announcement was made and the ASX did not “have any reasonable basis to imply the project was on track to meet future milestones”. More at #Proactive #ProactiveInvestors #MarketRegulation #ASX #ASIC #FinancialRegulation http://ow.ly/ISEp105FlIp

The Australian Securities and Investments Commission (ASIC) has taken ASX Limited to Federal Court over allegations that ASX provided false information about its Clearing House Electronic Subregister System (CHESS) replacement project. ASX's statements on 10 February 2022 suggested that the project was "on track for go-live" in April 2023 and "progressing well." According to ASIC, these statements implied that the project followed ASX's announced project timeline and would meet milestones like the April 2023 go-live date. However, during these announcements, the project was not progressing as planned, and ASX did not have a reasonable basis to suggest that those deadlines would be met. ASIC Chair Joe Longo emphasises the importance of trust in the integrity of the markets and accuses ASX of a collective failure in accurately communicating information about the CHESS replacement project. The delay and subsequent pause of the project caused significant costs to ASX and market participants. ASX paid $1,050,000 in penalties following an investigation into its compliance with market integrity rules, and ASIC is seeking a penalty for the current case.

ASX Faces $1.05M Fine After Probe into Its Market Integrity Rule Adherence ASX Limited has incurred a $1,050,000 penalty in the wake of an Australian Securities and Investments Commission (ASIC) investigation regarding their adherence to the Market Integrity Rules. This marks the inaugural instance of ASIC issuing an infringement notice to a market operator. The regulatory body issued the notice due to suspected breach of the pre-trade transparency rule by ASX on 8417 separate occasions, from April 2019 to December 2022. The regulation mandates ASX to provide certain order information on their trading platform, which unfortunately lacked details for certain equity products due to a system configuration error. #ASX #ASIC #MarketIntegrityRules #PreTradeTransparency This failure is directly attributed to ASX's inability to correctly set up specific order functionality in its trading system. ASIC deemed the conduct as severe as the system configuration error escaped unnoticed until a market participant flagged it. Worse still, there were two prior opportunities where ASX could have addressed it, but failed to do so. #SystemConfigurationError #ASXFault The consequences of the incorrect system setup and ASX's neglect in identifying and rectifying the same were inflationary elements in determining the penalty. While ASIC found no evidence of other losses stemming from this behavior, the blow to public trust in market operations was significant. This damaging outcome added weight to the penalty imposed. #PublicTrust ASIC noted that the circumstances leading to the system configuration issue signaled negligence rather than recklessness or intentional misconduct. Once the problem came to light, ASX swiftly acted to rectify the situation and informed ASIC. This settlement stands separate from ASIC's ongoing investigation about ASX's CHESS Replacement Program. #NegligenceNotRecklessness #CHESSReplacementProgram Market Integrity Rule 6.1.2 dictates market operators to share specific information like order volume and price on their trading platform. Few exemptions to this rule exist, such as for transactions valued at $200,000 or more for Tier 3 equity products, deemed as a block trade. #MarketIntegrityRule

In what represents a first, ASIC has hit the ASX with a $1.050 million penalty for failing to fully comply with the market integrity rules. https://lnkd.in/gkEaFE3w #asic #asx #marketintegrity

Today (September 17), the Australian Securities and Investments Commission (ASIC) released an updated guidance letter aimed at market participants, focusing on improving technological and operational resilience. The guidance clarifies how market participants can better identify critical business services and properly notify ASIC in the event of a major incident. This guidance falls under the broader framework of Chapters 8A and 8B of the ASIC Market Integrity Rules (Securities and Futures Markets) 2017. ASIC emphasized the importance of ongoing attention to operational resilience, stating that it is not a “set-and-forget” process and should be regularly adjusted based on changing circumstances. Key Highlights: - ASIC issued new operational resilience guidance for market participants. - The focus is on improving identification of critical business services and notification processes during major events. - ASIC’s guidance stems from Chapters 8A and 8B of the 2017 Market Integrity Rules for both securities and futures markets. - A three-step review process has been implemented, including thematic reviews and industry consultations to incorporate feedback into future regulatory updates. - ASIC remains committed to digital and data resilience as part of its strategic priorities for 2024-25. For further details, market participants are encouraged to refer to Regulatory Guides 265, 266, and 172, as ASIC works toward finalizing these updates. For the latest in market resilience and financial regulation, unlock cutting-edge legal intelligence with a free subscription to our platform — join us today. Visit https://lnkd.in/gZmkUPim to know more. #ASIC #MarketResilience #FinancialRegulation #SecuritiesMarkets #OperationalResilience #AustraliaMarkets #GRI

📢 ASIC’s 2024-2028 Strategic Priorities: A Closer Look The Australian Securities and Investments Commission (ASIC) has unveiled its 2024-2028 Corporate Plan, outlining key strategic priorities that will guide its regulatory activities over the next four years. Here’s a breakdown of what to expect: 🔍 Key Priorities: Improve Consumer Outcomes: Expanding focus on issues like predatory sales practices and dispute resolution to ensure better protection for consumers. Address Financial System Climate Risk: Tackling climate-related financial risks to build a more resilient financial system. Enhance Retirement Outcomes: Focusing on improving member services and retirement products. Advance Digital & Data Resilience: Strengthening the safety and security of digital systems across markets. 💡 Notable Changes: Broadened Focus: Previous pillars have been rephrased to cover a wider range of issues, reflecting ASIC’s evolving approach. Accountability on ASX: ASIC says they will hold the Australian Securities Exchange accountable for the CHESS replacement program. 🛠 Looking Ahead: Enforcement: ASIC trumpets a rise in commencing proceedings in court, but the win rate (particularly in crypto cases) may inform better decisions in providing guidance versus regulation by enforcement in future. Digital Asset Regulation: While digital assets are no longer a "core strategic project," their integration into regulated markets signals a convergence that could shape future regulatory frameworks. #ASIC #CorporatePlan #FinancialRegulation #DigitalAssets #DeFi #CryptoLaw https://wix.to/VY9bcMj

The Aradel Holdings PLC Journey – From Transparent Trading to Unique Price Discovery; an Exchange’s Promise Today, we are pleased to announce a unique development in the Nigerian capital market resulting from the successful meeting of one of the key objectives of the NASD OTC Securities Exchange. Our NASD Over the Counter (OTC) trading platform has hosted and nurtured to prominence a fully indigenous company that is ready for its significant next steps of growth. This signposts the developmental role of NASD Plc as a strategic financial infrastructure (FI) that discovers and projects organisations at their early to mid-life growth stages for further interaction with the broader capital markets – local and global.  The listing of Aradel Holdings Plc (aradel”) on the NGX Limited in the week ahead reaffirms the importance of the NASD as a capital market incubator and catalyst. We have worked with Aradel to provide an efficient market platform for interaction with all stakeholders of the capital market and are happy to see it mature into its next stage of development along this trajectory. Our Goals and Beginning The NASD Plc (NASD) is the over-the-counter (OTC) securities exchange licensed in 2012 by the Nigerian Securities & Exchange Commission (SEC), to trade the securities of public unlisted companies and offer a capital formation portal for unlisted corporations. Before its being licensed, and following the epic global financial markets collapse in 2008/2009, several investors in companies that had undertaken private placement of shares on the Nigerian Capital Market and those that had also invested in Initial Public Offerings (IPOs) at the time, found themselves stranded in their inability to get title (share certificates) to their investments and worse still to identify an organized way of selling the shares of the companies they had subscribed to, if they needed to. Some investors resorted to bilateral trading of these shares, looking for counterparties personally or through capital market agents to secure opportunities to sell or buy at mutually negotiated prices. Under these circumstances, the NASD Plc. was licensed in 2012 and created market liquidity in a transparent price discovery arrangement for unlisted securities. The NASD exists as a market growth catalyst for unlisted securities; the growth of Aradel Holdings PLC. on the NASD OTC Securities Exchange would validate NASD as a capital market incubator for aspirational organisations.

#ASX is a glaring example of failures of Australian corporate governance and regulation https://lnkd.in/gCP49qzG Shareholders should be ropeable, $250 million of shareholder value totally wasted. Market participants losing about the same amount in failed development efforts. And the joke(?) is they appear to have learned nothing. PS: "ASIC alleges statements made in ASX announcements on 10 February 2022 that the project remained “on-track for go-live” in April 2023 and was “progressing well” were misleading. ASIC alleges these statements implied the project was tracking to ASX’s announced project plan and was on track to meet future milestones" This was not the only time that #ASX management 'implied' that the #ASX announced plan was on track. https://lnkd.in/g7ENffib

Capital Market and Securities Laws updates: Master Circular for Listed Companies (April 29, 2024) NSE has been issuing various circulars/guidelines to Listed companies on various requirements. In order to enable the Listed Companies to have access to the applicable circulars at one place and to facilitate Listed Companies to comply with the regulatory requirements, the Exchange has prepared a Master circular for Listed Companies. This Master Circular is a compilation of relevant and updated circulars/guidelines issued by the NSE as on April 29, 2024, and which are operational as on date of this circular. With the issuance of this Master Circular, the circulars/guidelines contained in the circulars listed out in the respective annexures to this Master Circular shall stand rescinded. For market details: https://lnkd.in/gPZpVY9i