Asia Pacific Exchange has compliance and market supervision procedures and policies in place to ensure it fulfils its primary role, which is to regulate its ASIC assigned market license to ensure a fair, orderly and transparent market is maintained at all times.
APX does not take this supervisory role lightly and to ensure the highest levels of efficiency are met by the Market Surveillance Department a series of independent committees have been set up to oversee the operation of this department. These committees ensure decision-making processes are independent and transparent.
The three independent primary committees are in place to deal with the three separate areas of market participation:
- The Quotation Committee: In place to monitor the market listees on the exchange. Oversee everything listee based from granting admission to the official list to ensuring that once listed the listee complies with all provisions of the Listees Listing Standards.
- The Adjudicatory Tribunal: In place to monitor the market participants involved in the exchange. They oversee entrance criteria and monitoring compliance of participants with the APX Business Rules.
- Market Supervision Committee: Independently monitors APX's role as market regulator and ensures that APX are conducting to the best of their abilities a fair, clear and transparent market.
Market Supervision & Conflicts
APX has arrangements in place to identify and deal with conflicts between the commercial interests of APX and its obligation to do all things reasonably practicable to ensure a fair, orderly and transparent market. These include decision-making processes which are independent and transparent.
More specifically APX is governed by the following documents:
- Market Supervision Committee (MSC) Terms of Reference
- Conflict Management Plan
- Compliance Plan
Role of the Market Supervision Committee (MSC)
The APX Market Supervision Committee monitors the exchange’s compliance plans, conflict management and all policies and procedures. The MSC is an independent committee to ensure that the market operates under a fair, orderly and transparent environment.
The MSC provides written reports to both the Board of APX and ASIC of its findings on the compliance and superpvision of the operations of APX.
The MSC reports any material breachs or suspected material breachs of compliance and conflict management to the board.
The MSC reports any breaches to the Corporations Act, and rules and conditions of the Market License of APX to the board.
Conflict Management
Deals with material interest
The Market Supervision Committee (MSC) has been set up by APX to provide a body which is independent of the board, to review APX’s ongoing regulation of its market and compliance with the terms of its ASIC assigned market license.
The committee is required to meet bi-monthly to monitor what extent APX complies with each of its policy documents. These documents consist of the Compliance Plan, the Conflict Management Plan, the written policies and procedures of the Company; and the Terms of Reference.
The Market Supervision Committee also plays a proactive role in improving the compliance procedures of the exchange by providing an annual written report. This report details whether the previously mentioned key documents are adequate as well as recommending changes to the compliance procedures and/or the financial, technological and human resources employed, to ensure that the Company has the capacity to fulfil its obligations under its Key Documents.
An important aspect of the Asia Pacific Exchange framework is its ability to update its regulation practices efficiently to adapt to changing market and compliance environments. The communication link by the MSC to the APX Board about possible improvements to compliance procedures enable the APX to run its exchange in a highly specialised manner which benefits all its participants.
If you would like copies of the Decision Statements from the Quotation Committee click here.
If you would like copies of the Decision Statements from the APX Adjudicatory Tribunal click here.
If you would like a copy of the Criteria for making Supervisory Decisions click here.
Guidance Notes
Guidance Note 1 – Trading Halts. If you would like a copy of this Guidance Note please click here.
Waivers
If you would like a copy of the Register of Waivers Granted click here. Please note however that this Register is published for information purposes only and does not set any precedents which an Applicant can rely. Each request for a waiver will be considered on a case by case basis and will be dependant on the individual circumstances and in accordance with prevailing Listing Rules and Business Rules of APX.