The Federal Government has moved to review the financial market licensing regime in the context of not only high frequency trading but other changes in the financial services arena.
The Minister for Financial Services, Bill Shorten, said the Treasury had been requested to conduct the review to ensure the licensing framework arrangements under the Corporations Act were appropriate, so that the Australian Securities and Investments Commission (ASIC) had the best possible tools to supervise and regulate "both the more traditional public exchanges and more recent developments".
He said that while the review would examine the licensing of dark pools, it would also be directed at ensuring that the market licensing regime was "generally fit for purpose".
He said stakeholders would have an opportunity to provide their views as part of the review.
The review of the licensing regime has been welcome by the Financial Services Council.
