ASIC orders 25% reduction in market trades

The Australian Securities and Investments Commission (ASIC) has issued an edict to some of the largest participants on the Australian Securities Exchange (ASX) and other markets limiting the number of trades they can execute until further notice.

The move has been undertaken in the face of the COVID-19 and what ASIC described as record trading volumes over the past two weeks.

It said that while there was no disruption to market operations, there had been a significant backlog of work required to be undertaken over the weekend by exchanges and trading participants.

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“If the number of trades executed continues to increase, it will put strain on the processing and risk management capabilities of market infrastructure and market participants,” the regulator said

“Accordingly, ASIC has issued directions under the ASIC Market Integrity Rules to a number of large equity market participants, requiring those participants to limit the number of trades executed each day until further notice,” it said.

“These directions require those firms to reduce their number of executed trades by up to 25% from the levels executed on Friday. This action will require high volume participants and their clients to actively manage their volumes. We do not expect these limits to impact the ability of retail consumers to execute trades.”

“ASIC will continue to closely monitor market conditions and take action where needed to ensure markets remain fair and orderly.”




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What will this achieve ? Leave the bloody markets alone.

If ever there was any proof that ASIC are inept and have no clue, this statement alone puts that beyond any doubt.

ASIC are the modern day equivalent of the people who thought it'd be a good idea to bring rabbits, cane toads and carp to Australia to solve problems. Although at least they've moved on from other life and death matters in a time of a great humanitarian crisis, such as what font sizes we use on our documents to describe the non-independence that no-one other than them can see!

so reduce liquidity? Great, that will just exacerbate the volatility due to thinner volumes, genius.

This has never happened not even in the GFC you can’t stop people selling this just sealed the deal the market will tank further as panicked investors who can’t fill their sell orders on 1 day will sell all their holdings over the week great way to maintain market integrity ASIC YOU CANT STOP PEOPLE FROM SELLING IF THEY WANT TOO

there’s an old saying in finance

You can’t fight the market

The Bank of England( UKs central bank) learnt that the hard way when they tried to keep the British pound pegged to the Deutsche Mark even with their huge resources Global investors broke the Bank of England

If ASIC think they have any chance they are kidding themselves

More Gov't involvement in free markets.... every time they stuff it up and make things worse.

let those panicked sell, and crystallize their losses. let those of us who have the intestinal fortitude to have a 20 30 year horizon buy.

this is one of the greatest opportunities for me to become rich. please ASIC, let the panicked sell.

in 6 months, this panic will be over and the world will be stricken by another, and then another following that one eveyr 6 months.

thank you,
LAME

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