ASIC proposes rules for CGS trading
The Australian Securities and Investments Commission (ASIC) has released draft rules for trading depository interest in Commonwealth Government Securities (CGS) on public exchanges.
The consultation paper is designed to facilitate retail trading of CGS and to "develop a deep and liquid corporate bond market".
ASIC Commissioner John Price said it would give retail investors a benchmark for investing in Australian corporate bonds as well as encourage them to diversify savings through fixed-income products.
"Fostering the retail trading of CGS on financial markets can give retail investors, including self-managed super funds trustees, a more visible pricing benchmark for investments they may wish to make in corporate bonds issued by Australian businesses," he said.
Consultation paper CP181 proposes to adopt the proposals in consultation paper CP179 and tailor them to CGS' depository interests.
ASIC is seeking feedback on extreme price movements, pre and post-trade transparency, best execution, regulatory data for market surveillance, market operator obligations in a multi-market environment and market participant obligations.
Submissions close on 31 August 2012 and feedback is also requested on whether proposals should be applied to other debt market products.
Recommended for you
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
Global equity manager Orbis Investments has appointed a head of marketing from Capital Group as it becomes the latest manager to target advised retail investors.
While Australia prepares for the $3.5 trillion intergenerational wealth transfer, a Wilsons Advisory report suggests the ongoing gender imbalance in the advice profession could prove a challenge to this process.
Danielle Press, a former ASIC commissioner, is to chair a new AFSL committee set up by Sequoia which seeks to improve governance practices and review its approved product lists.
