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The chairman of the Australian Securities and Investments Commission (ASIC), Tony D’Aloisio, has confirmed the regulator has already taken steps to mitigate the risk of a repeat of the events on Wall Street a fortnight ago that saw the Dow Jones drop 998 points in just minutes.
In an article published this week, D’Aloisio said the steps taken by the regulator included the banning of naked short-selling, the implementation of a review of algorithmic trading and direct access in Australia and the testing of brokers’ risk controls.
He said ASIC was also putting in place a market surveillance system that would be able to take order and trade data from multiple markets and allow the regulator to monitor the whole of the market in real time.
D’Aloisio said ASIC and other regulators were continuing to examine what happened on Wall Street a fortnight ago and would be listening to stakeholders to ensure the Australian system had integrity and was efficient.
