This edition of the
Update covers:
Recent legal and regulatory developments, including the release of APRA s policy and supervision priorities for 2021, the launch of APRA s Cyber Security Strategy 2020 – 2024, Australian regulatory support for the ISDA IBOR Fallbacks Protocol and Supplement, and Australia s renewed focus on sanctions;
Two recent Federal Court decisions which support ASIC s position on obligations to comply with ASIC notices and to substantiate any claims for legal professional privilege;
The continuing fallout of the Financial Services Royal Commission and the recent cases which demonstrate that ASIC and APRA appear to remain committed to taking enforcement action in relation to matters referred by the Commissioner;
Date Time
Update on ASIC’s review of November’s ASX Trade outage
ASIC continues to assess the impact of the ASX Trade outage and subsequent issues with its Centre Point dark-pool trade matching service, order cancellations and a delay to clearing and settlement that occurred during the week of 16 November 2020.
ASIC is engaging with market operators, participants, investors and other stakeholders on the impact of the incident.
The immediate impact was the deterioration of liquidity and widening bid-offer spreads as many participants and their clients were unable (or chose not) to trade through alternative trading mechanisms. There was uncertainty among participants and clients about the nature of the ASX system failure and what it meant for orders that had already been submitted to the ASX. It appears some participants and clients had limited access to other venues. Client order instructions and ASX-only data subscriptions also raised challenges for using other venues. Ultima