Australian Stock Exchange Limited (ASX) today welcomed the release of the Australian Securities and Investments Commission’s annual assessment of its clearing and settlement arrangements and systems.
The assessment is “issues free” as it contains no recommendations for follow-up action by ASX, and mirrors the findings of the previous assessment (28 October 2005) of ASX’s market support structures.
The ASIC assessment, available on www.asic.gov.au, found that ASX Settlement and Transfer Corporation Pty Ltd (ASTC) and Australian Clearing House Pty Ltd (ACH) each has adequate arrangements for supervising its respective clearing and settlement facility, as required under their licence obligations.
The assessment also found that management and staff demonstrated a high level of operational expertise and that both ASTC and ACH used “good and reliable technology” to remain “active and vigilant in their financial risk management”. ASIC also commended the “very high operational reliability of the facilities”.
“ASIC’s latest positive assessment is good news for all investors and market participants. Average daily turnover of ASTC and ACH now exceeds $4.3 billion, so it is vital that both companies continue their important role in maintaining confidence in the markets we operate,” ASX Chief Supervision Officer Eric Mayne said.