ASIC to expand monitoring to private markets, considers media leaks measures
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The news: The Australian Securities and Investments Commission (ASIC) will expand its monitoring to private markets and consider techniques to discourage media leaks, following its review of Australia's listed equity markets.
The regulator plans to enhance misconduct detection using advanced data analytics tools and will expand its monitoring activities to private markets, including debt markets, as these have become more active and their interaction with public markets has grown, heightening the risk of insider trading.
ASIC called on industry participants, including listed companies, investors and advisers, to implement robust policies and procedures for handling confidential information. It said it is considering techniques used in other jurisdictions to discourage media leaks from corporate advisers, companies and investors.
The numbers: The review, covering 1 November 2018 to 30 April 2024, found Australia's markets to be among the cleanest globally despite temporary declines during the COVID-19 pandemic and late 2023. Anomalous trading accounts averaged 0.56% during the review period, with 4.75% of volume ahead of major public statements and announcements (MPSAs). The telecommunications sector was the cleanest, while the real estate sector was the least clean, it said.
The context: The temporary declines in market integrity were driven by increased trading activity and media reports ahead of major announcements, the regulator said. During the pandemic, ASIC intervened to improve market integrity through targeted surveillance, public warnings and disrupting ‘pump and dump’ schemes.
Overall, the report found Australia’s listed equity markets consistently ranked ahead international peers, with the least pre-announcement price increases among 10 peer countries in the 2009–2022 period.
