Globalisation of the Securities Market
THE GLOBALISATION OF THE SECURITIES MARKET
ALAN CAMERON, AM CHAIRMAN AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION
Seminar on the Globalisation of Securities
ALLEN ALLEN & HEMSLEY
Sydney
16 August 1999
2
Introduction
International financial markets have, over the last two decades, been transferred by a number of key developments which, for regulators, have posed significant challenges to their traditional notions of jurisdiction, regulation and enforcement. The most notable of these developments is the rise of Electronic Commerce, catalysed by the globalisation of financial markets. E-commerce has become a fundamental regulatory issue of the late 90’s due to the magnitude of financial transactions that are now being conducted over the internet. To quantify this magnitude; the number of Australian households, with internet access has grown from 4 percent in 1996 to over 13 percent in late 1998, and over one third of households now own a home computer. The aim of this paper is to provide a brief overview of ASIC’s regulatory responses to these developments and outline some of its recent initiatives relating to the financial services industry. This evening I will briefly discuss: • • • • • The Global Market; The growth of E-Commerce; Current international regulatory activity; Regional initiatives; and International enforcement.
The Global Market
The globalisation of the securities market is reflected in a number of ways including: 1. the growth of cross-border and cross exchange securities transactions; 2. the number of secondary listings of companies on overseas exchanges; 3. the emergence of multinational securities firms servicing the business from offices across the world; and 4. the increasing number of strategic alliances and other connections between regulated financial markets in different parts of the world. The global financial market now crosses borders and jurisdictional zones, directly and via the Internet. Advances in
ALAN CAMERON, AM CHAIRMAN AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION
Seminar on the Globalisation of Securities
ALLEN ALLEN & HEMSLEY
Sydney
16 August 1999
2
Introduction
International financial markets have, over the last two decades, been transferred by a number of key developments which, for regulators, have posed significant challenges to their traditional notions of jurisdiction, regulation and enforcement. The most notable of these developments is the rise of Electronic Commerce, catalysed by the globalisation of financial markets. E-commerce has become a fundamental regulatory issue of the late 90’s due to the magnitude of financial transactions that are now being conducted over the internet. To quantify this magnitude; the number of Australian households, with internet access has grown from 4 percent in 1996 to over 13 percent in late 1998, and over one third of households now own a home computer. The aim of this paper is to provide a brief overview of ASIC’s regulatory responses to these developments and outline some of its recent initiatives relating to the financial services industry. This evening I will briefly discuss: • • • • • The Global Market; The growth of E-Commerce; Current international regulatory activity; Regional initiatives; and International enforcement.
The Global Market
The globalisation of the securities market is reflected in a number of ways including: 1. the growth of cross-border and cross exchange securities transactions; 2. the number of secondary listings of companies on overseas exchanges; 3. the emergence of multinational securities firms servicing the business from offices across the world; and 4. the increasing number of strategic alliances and other connections between regulated financial markets in different parts of the world. The global financial market now crosses borders and jurisdictional zones, directly and via the Internet. Advances in