Fed: ASX change a positive: Bowen

AAP General News (Australia)
08-24-2009
Fed: ASX change a positive: Bowen

CANBERRA, Aug 24 AAP - Financial Services Minister Chris Bowen says changes to the
way share trading is monitored will remove the perception of a conflict of interest.

The Australian Securities and Investments Commission (ASIC) is taking over the day-to-day
supervisory role of share trading from the Australian Securities Exchange (ASX).

The move means ASIC will oversee the $4.4 billion worth of trades conducted on average
each day on the ASX, a role currently undertaken by the ASX itself.

Mr Bowen said there were shortcomings with the previous arrangement so the change was
appropriate.

He told ABC Television he was concerned about insider trading, although he didn't blame the ASX.

Mr Bowen said he expected the ASX to reduce the fees it charged brokers and market
participants, because it would no longer hold a supervisory role. ASIC would now recoup
those costs from brokers.

Market experts and the federal opposition have said there are still a number of questions
that have to be answered on how the change of ASIC's expanded role will work.

AAP ca/apm

KEYWORD: MARKETS BOWEN

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