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Suspicious Activity Reporting – Regulation Impact Statement – Australian Securities and Investments Commission

On 16 July 2012, the Australian Securities and Investments Commission (ASIC) announced new suspicious activity reporting requirements which will apply to the Australian Securities Exchange (ASX) and Chi-X Markets. This measure is due to commence from 1 November 2012 but ASIC will waive the obligation to comply until 20 January 2013 to assist with industry adaptation. The suspicious activity reporting obligation will require participants of the ASX and Chi-X markets to notify ASIC when they become aware, in the course of their business activities and in the course of complying with existing obligations, of certain suspicious trading activity. ASIC expects that this rule will increase reporting by market participants of potential misconduct and, ideally, assist early detection by ASIC of possible misconduct. To assist market operators to understand the new rules ASIC has also released Regulatory Guide 238 Suspicious Activity Reporting. A Regulation Impact Statement was prepared by the Australian Securities and Investments Commission and assessed as adequate by the Office of Best Practice Regulation.