asx clamps down on tricom after delay

Reuters

The Australian stock market operator says it will impose stricter conditions on independent Australian broker Tricom Equities after it failed to meet payment obligations from previous day.

ASX has asked Tricom to report its capital and liquidity position on daily basis and allow regulators to monitor its operations to help meet its settlement obligations.

"We have got people on the premises today providing supervisory oversight to ensure that they are in compliance with their obligations," an ASX spokesman said.

"It will be ongoing until we are satisfied that they are meeting their obligations," he added. The exchange will place restrictions on Tricom's access to clearing facilities.

ASX said Tricom did not have sufficient funds available to meet the settlement schedule, but has eventually met its financial obligations and the settlement was completed this afternoon.

The broker has not commented.

All trades executed on the exchange are guaranteed by the clearing house, while brokers are allowed to use ASX's clearing facilities to settle trades that are done offmarket.

A rumor that a broker had not settled trades sent shares down sharply on Tuesday, and continued to weigh on the market on Wednesday, helping push the benchmark S&P/ASX 200 down over 1.6 per cent.