Asx's Role In Insider Trading And Investigation

The role of ASX in insider trading and investigation

ASX operate the main security market in australia, It functions as a market operator, clearing house and payments system facilitator. It also oversees compliance with its operating rules, promotes standards of corporate governance among Australia’s listed companies and helps to educate retail investors. (ASX Group, no date)

The ASX Group originally operate as a national exchange dates back to 1987. Later, in 1987 the Australian Stock Exchange Limited was formed when the Australian Parliament drafted legislation that enabled the amalgamation of six independent state-based stock exchanges. The Australian Stock Exchange merged with the Sydney Futures Exchange In 2006 and originally operated

These arrangements includes monitoring and surveillance and the enforcement of the obligations of the listed company. First of all, the ASX requires the continuous disclosure of important information of the listed company. Second, the ASX also monitors all announcement made by listed companies. Finally, the ASX also monitors if the listed companies meets their quarterly, half-yearly and yearly report requirements. In addition, once the ASX discovered that a company has failed to comply with the listing rule of ASX, the ASX would require the company to take corrective actions like disclosure of import information.

ASX works closely with ASIC in monitoring and investigating possible contrevent of rules and regulations because the regulation power of ASX is limited for several reasons. First of all, ASX is not an arm of government. It can not exercising police powers such as size evidence or arrest people who don't cooperate the way ASIC can. (ASX Group, no date) In fact, ASX can only take actions in and investigate matters related to the listing rule. Therefore ASX must report any suspicion of breach of the listing rule or the Corporate Act with detail about the breach. So that the ASIC would investigate and

It is important that the investor has a strong confidence in the market or else the number of inTo achieve the Corporate Act give ASIC facilitative, regulatory and enforcement power in regard to breach of Corporate Act and listing rules. First of all, ASIC has to powers to investigate any possible contravene of the Corporation Act on it own initiative. It also has to power to gather information to facilitate its investigation. Also it has the power to inspect any books and records companies are obliged to keep. Finally it has to power to Prosecution for criminal offences or apply for civil penalty order. (Commission, no