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Report of the Roles Played by the Asx and Asic

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Report of the Roles Played by the Asx and Asic
Report of the roles played by the ASX and ASIC

Prepared for
Tiffany Hutcheson
Coordinator of capital market

April, 2011

Table of contents

1.0 Introduction…………………………………………………………………1 2.0 Roles played by the ASX…………………………………………………...2 3.1 Importance of the ASX as a regulator…………………………………..2 3.2 Responsibility and objective of the ASX……………………………….2 3.3 Roles of the ASX………………………………………………………..2 3.4 Changing role of the ASX………………………………………………3 3.0 Roles played by the ASIC in the market…………………………………….4 4.5 Responsibility and objective of the ASIC………………………………4 4.6 Roles of the ASIC……………………………………………………….4
4.0 Conclusion & Recommendation………………………………………………6
5.0 Reference list…………………………………………………………………..7

1.0 Introduction
On 1 April1987, six exchanges that operated in the state capital cities merged to form the ASX. It is an Australia's primary national market for equities, derivatives, and securities. In Nov.1998, the ASX became the first exchange in the world to have its shares listed on its own market. On 1 August 2010, the responsibility for the supervision of real-time trading on the ASX was transferred to ASIC. The ASIC which is an independent commonwealth government body become the Australia’s corporate, market and financial service regulator. From then on, trading on the ASX is regulated and supervised mainly by ASIC and ASX. In this report, we are going to look in detail at the role played by the ASX and ASIC in the regulation and supervision of trading on the ASX. Moreover, a wide range of sources are used in this report. Some information are obtained from the textbook, official website of the ASX and ASIC, as well as several journal articles. Topics covered in this report are the importance of the ASX as a regulator, the responsibility and objective of the ASX and ASIC, roles played by the ASX and ASIC, and the supervision transferred.

2.0 Roles played by the ASX in the markets
2.1

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