"Public Perceptions of ASX Role During FY08 ASX endured a...

"Public Perceptions of ASX Role

During FY08 ASX endured a sustained period of market and media commentary based on the assumption that ASX had a responsibility to prudentially regulate brokers and comprehensively regulate short selling, stock lending and a range of other activities. ASX’s powers and responsibilities are much narrower. ASX does not have the capacity to regulate or supervise OTC conduct or the conduct of non-ASX Participants and it cannot use its rule making ability to override legislation.

Clarifying the nature of ASX’s supervisory responsibilities has become increasingly important, especially during the turbulent market conditions that prevailed in 2007- 2008. How well ASX’s different and competing stakeholder groups understand ASX’s role in Australia’s regulatory framework has a significant impact on ASX’s reputation and, in turn, on the reputation of the financial system generally. It is a matter of public interest as well as ASX shareholder interest."

At http://www.asx.com.au/supervision/supervisory_role/index.htm