ASIC puts insider trading under the microscope

By Jim Holding, Lyndon Masters and Daniel McGuiness

The Australian Securities and Investments Commission (ASIC) has announced that its new $43.7m (£24.2m) next-generation market surveillance system has become operational. The system, known as Market Analysis Intelligence (MAI), will allow ASIC to monitor up to one billion order changes per day. On this basis, MAI will have sufficient capacity to monitor trades where algorithmic trading and high-frequency trading are becoming more prevalent in Australia.

This represents a significant upgrade in comparison to ASIC’s previous capabilities in detecting insider trading and other market misconduct prohibitions. Under the old system, when a suspicious trade occurred, ASIC would request that the broker provide a list of their clients who participated in the trading of that security on the day in question. ASIC would then undertake the labour-intensive task of manually matching the suspicious trades against the relevant individual/s provided by the broker. In contrast, MAI will enable ASIC to monitor significant amounts of data relating to a single investor in real time. This will allow ASIC to determine more efficiently, and effectively, who in particular is gaining from trades prior to company announcements and, in doing so, targeting its resources to investigate accordingly…

 If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from DLA Piper

View more briefings from DLA Piper

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

3 Noble Street
London
EC2V 7EE
UK
http://www.dlapiper.com

Turnover (£m): 1,566.29
No. of lawyers: 3,961 (UK 200)
Jurisdiction: global
No. of offices: more than 75
No. of qualified lawyers: 625 (International 50)

Jobs