POWERED BY MOMENTUM MEDIA
ASIC drops HFT proposals
The Australian Securities and Investments Commission (ASIC) will not implement a small order resting time to manage high frequency trading (HFT) due to a drop in small and fleeting orders, it said.
ASIC has refined its rules for HFT and dark liquidity following the release of a suite of proposals, including the small order resting time rule, by Minister for Financial Services and Superannuation Bill Shorten last November.
ASIC will continue to monitor the issue and review the necessity of the rule if orders reached problematic levels, it said.
The regulator also said it would rely on an order's impact rather than remove ‘materiality' in relation to manipulative orders.
Dark liquidity had already reduced as a result of the new meaningful price improvement rule introduced on 26 May, ASIC said, and so it would not proceed with implementing minimum size thresholds.
It refined a number of rules as related to crossing system operators, including removing the requirement of crossing system operators to publish aggregate statistics in relation to system transparency and disclosure.
Although last March ASIC said industry concerns regarding HFT had been overstated, Industry Super Network has continued to lobby for a call order auction to reduce what it says are the negative and destabilising market effects of HFT.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
Cbus Super has unveiled Advice Essentials Plus, a new service offering affordable financial advice to both members and their partners.
The fund has launched a new tool to help deliver personalised financial education and digital personal advice to eligible members.
The QAR lead reviewer has told a Senate committee that the government’s demands of super funds conflict with their original purpose.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
