ASIC has released its assessment of each of the licensees of the Australian Securities Exchange (the ASX group). The report (pdf) covers the period 1 July 2006 to 30 March 2008.

ASIC’s task is to assess if, over the period in question, ASX had adequate arrangements in place to supervise its markets (including to manage its conflicts of interest) and its clearing and settlement facilities under ss792A(c) and 821A(c) of the Corporations Act.

ASIC’s assessment concluded that while there are matters for improvement, ASIC’s view is that nevertheless, ASX had adequate arrangements in place for the review period and with the Agreed Actions, should continue to have adequate arrangements. 

During the assessment, ASIC identified areas for improvement to assist ASX in ensuring its supervisory arrangements remain adequate. Following discussions with ASIC, ASX has agreed to take 10 actions which ASIC believes will improve the supervision arrangements for the future, including its arrangements to manage conflicts.

These Agreed Actions are detailed in the report.