Has some other people have mentioned, I don't think either party wants this to go to court. I think the fact that ASX has written 4 sets of extensive questions, shows that they started this investigation without a clear idea of what they were trying to clarify or uncover. My main issue as a shareholder was around the performance shares, surely this could have been one set of questions and answered quickly to resume trading. ISX might not be squeaky clean either, but I think if you dig back far enough and deep enough something might come out. Also the whole court claim is not saying that ASX are causing reputational damages because of their questions or accusations, they are more going along the lines of procedural fairness and confidentiality and that the market suspension is causing reputational damages - would be equivalent to innocent until proven guilty.
I think ISX just wants the suspension lifted to resume trading, I assume ASX needs to at some point grant this unless they have a specific claim about ISX to make.
I know everyone is bringing up Westpac, what they did was wrong but the market is aware of all the information so it can be traded fairly. Maybe its so ASX can't use the ASIC is investigating line as reason for suspension.
I noticed this paragraph on one of the last pages. Is ISX trying to have the Minister use his powers to intervene and provide direction to ASX to lift the suspension, e.g. going above ASX to get the suspension lifted? I am no expert in financial markets or law, but that's the way I read this paragraph and purpose of the court proceedings. Anyone else got a take on this?
A. The ASX is permitted to operate the Australian Securities Exchange by reason of the Market Licence granted to it by the Minister who can: a) pursuant to section 794A(1) of the Corporations Act, give the ASX a written direction to do specified things that the Minister believes will promote compliance by ASX if the Minister considers that the ASX is not complying with its obligations as a market licensee; and b) pursuant to section 794B(1) of the Corporations Act, give ASX a written notice requiring it to give ASIC a special report on specified matters.
ISX Price at posting:
$1.07 Sentiment: None Disclosure: Held
