ASIC puts market on notice over Novonix leak 'disgrace'
The market regulator has warned it will investigate any breaches of disclosure obligations after a brazen leak led to a big share price swing on the ASX.
The corporate and securities regulator ASIC has pledged to punish dealmakers and other market players for loose handling of sensitive information after reports of an equity raise led to wild swings in the shares of lithium-ion battery producer Novonix.
Around midday on Wednesday apparent details of a planned capital raise by Novonix, to be led by investment bank Citi, were published by the Financial Review, triggering a near 10% slump in the stock on the ASX before it screeched into a trading halt.
The incident sparked widespread outrage in market circles. One broker who was not authorised to speak on the matter told Capital Brief it was a "disgrace" that the news had been leaked and that it took so long for Novonix to enter a trading halt after it surfaced.
"I can't recall seeing anything like this to be honest," they said, arguing it reflected especially poorly on Citi. "I can't believe it was left to trade. This is insider information."
