ASX Limited has paid a penalty of $1,050,000 following an Australian Securities and Investments Commission (ASIC) investigation into its compliance with the Market Integrity Rules. This is the first time ASIC has issued an infringement notice to a market operator.
ASIC issued the notice because it has reasonable grounds to believe that ASX breached the rule requiring pre-trade transparency on 8,417 occasions between 4 April 2019 and 22 December 2022. The rule requires ASX to make certain information about orders available on its trading system. ASX failed to make that information available about orders for certain equity market products as a result of an incorrect system configuration.
Pre-Trade information is important because it assists with price formation, aids liquidity, enables investors to assess investment opportunities and value listed companies.
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