New ASX supervision regime less efficient: CEO

THE head of Australia’s main stock exchange believes the sharemarket has been supervised in a less-efficient way since the corporate regulator became responsible for monitoring real-time trading.

Elmer Funke Kupper, the chief executive of the Australian Securities Exchange, said changes to the structure of the country’s equity market meant more people were now needed to do the overseeing job the ASX once did.

He said the ASX and the Australian Securities and Investments Commission were still coming to terms with who should take the lead on some issues after the corporate regulator assumed responsibility for the supervision of real-time trading in August 2010.

His comments come less than two months after the share prices of a handful of blue-chip companies, including the ANZ and BHP Billiton, shot up and then dropped back inexplicably in the opening auction on the ASX.

ASIC has responsibility for looking into bizarre price movements and is yet to publish results of its inquiry. Before August 2010, it would have been the ASX’s responsibility.

”One of the things we’re discovering is … what issues should be managed by us and what issues should be managed by ASIC, or what issues actually fall in both our camps, [where] someone should take the lead,” Mr Funke Kupper told a Senate committee last week. ”[But] the current way of organising ourselves around this is less efficient than it used to be … [because] together we have more people overseeing market surveillance than we used to have on our own.”

Mr Funke Kupper said he did not think anything had ”fallen between the cracks” since ASIC has assumed its increased supervisory workload.

ASIC is now responsible for licensing and market integrity rules, while the ASX monitors and enforces compliance with its listings and operating rules.

An ASIC spokesman said on Sunday that the ”assessment” of the strange price movements in the ASX’s opening auction had not concluded. Peter Hiom, the deputy chief of the ASX, told the Senate committee last week he could see not see any evidence of a delay in the way ASIC had handled the price spikes.

The original release of this article first appeared on the website of Hangzhou Night Net.


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