The (ASIC) announced this Wednesday that it has updated its information sheet on exchange-traded products to provide further guidance to firms such as Australian exchanges, market-making execution agents and product issuers.
In particular, the regulator has updated Information Sheet 230 Exchange traded products: Admission guideline. The updated document providers additional information on better practices for internal market-making in non-transparent, actively managed funds that are traded on exchange markets, the regulator said today.
The updated guidelines follow on from ASIC’s review of internal market-making, which occurred in the second half of last year. Specifically, the update highlights how they can manage market integrity risks associated with internal market-making.
In the statement published today, ASIC said that firms should:
In addition, the update also provides relevant firms with guidance on improving internal market-making practices, such as the indicative net asset value (iNAV) being as accurate and frequently disseminated as practicably possible, among other guidelines.
ASIC steps up market supervision
Today’s announcement follows on the heels of the Australian regulator revealing that amid COVID-19 it has to ensure its markets remain fair and orderly, in order to ensure that investors are appropriately informed and protect against market abuse.
Furthermore, as the Aussie watchdog deals and tries to ensure the integrity of its markets, ASIC will be deferring some of its activities and reassign some of its staff to address issues of immediate concern.
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