ASIC has released a consultation paper proposing new market integrity rules for securities and futures market operators and participants that promote technological and operational resilience of their critical systems.
Consultation Paper 314 (CP 314) seeks feedback on our proposals to address the increasingly automated and interconnected nature of our markets. The proposals apply to:
futures and securities market operators of the ASX, ASX 24, Chi-X, NSX and SSX; and
participants of those markets.
The proposals address the following areas of critical systems arrangements:
change management in relation to critical systems;
outsourcing of critical systems;
risk management, and data and cyber security;
incident management and business continuity planning;
governance and resourcing; and
fair access to markets and trading controls.
The proposals are consistent with international standards and clarify and strengthen existing obligations for market operators and market participants.
‘It is essential to the integrity of our securities and futures markets that market operators and market participants are resilient. This ensures the efficient functioning of the market as well as investor trust and confidence in the market. In keeping pace with market developments, it is important that our regulatory regime aligns with international best practice,’ ASIC Commissioner Cathie Armour said.
ASIC invites submissions on CP 314, due by 9 August 2019.