Stocks
ASX Makes 20 ASIC Referrals Over Suspected Rule Breaches
Australia's stock exchange operator’s first supervision report revealed 20 referrals to ASIC over a nine-month period, covering suspected insider trading, misleading statements and continuous disclosure contraventions.
Australia's financial markets are being tightly regulated, and in the past nine months, the Australian Securities Exchange (ASX) has referred 20 suspected breaches of market rules to the Australian Securities and Investments Commission (ASIC), the exchange's first supervision report reveals.
The referrals included allegations of insider trading, of statements that were misleading, and possible violations of continuous disclosure requirements.
The numbers are based on ASX's market monitoring work during the period July 2025 to March 2026, which was concurrent with ASIC's extensive governance and operational review of ASX.
First Supervision Report Details Enforcement Activity
The supervision report details one of the most clear and transparent pictures of the process for escalating issues to Australia's corporate regulator, ASX, identified by ASX's surveillance teams. ASX closely monitors trading on its exchanges, while ASIC is tasked with investigating any potential breaches of the Corporations Act and taking necessary enforcement actions.
In the period, the ASX reviewed unusual trading activity, unusual market activity, and unusual trading patterns and referred any that it considered to require further regulatory review.
The disclosures follow a continued increased focus by regulators on market conduct, including insider trading and continuous disclosure and misleading market announcements.
ASIC inquiry led to governance reforms
The data was provided following the release of the Final Report of the Inquiry into the ASX Group by ASIC only months after it conducted a nine-month study of governance, operational resilience, technology oversight, and risk management.
The inquiry found that there was a need for improvements to be made in various aspects of the organization. ASIC ordered ASX to carry out a comprehensive governance reform program and to hold a further capital buffer of $150 million until agreed-upon reforms are implemented.
ASIC will be responsible for implementing the changes, with the Reserve Bank of Australia (RBA) to oversee this process, given ASX's role as the critical financial market infrastructure in Australia.
The inquiry was prompted by continued worries over the failed replacement of ASX's share transaction settlement and clearing system, the Clearing House Electronic Subregister System (CHESS). To mitigate operational risk, ASIC recommended better governance, accountability, and the use of technology, it said.
Financial results released alongside regulatory changes
The developments came on the heels of better financial results for the first half of FY26 reported by ASX.
Operating revenue grew 11.2 percent to A$602.8 million, and net profit after tax grew by eight percent to A$263.6 million. The company also reiterated the FY26 capital expenditure guidance of between A$170 million and A$180 million, primarily targeted at technology systems and market infrastructure.
ASIC will also keep monitoring ASX's progress as it implements the necessary governance and operational changes and remain vigilant over equity markets in Australia under its wider market surveillance program.
Source: Capital Brief
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