iSignthis Accuses ASX of Suspending Trading Based on Media Speculation
- In an interlocutory hearing, iSignthis argued that the ASX has unfairly suspended its shares.
The legal battle between iSignthis Ltd (ASX: ISX) and the Australian Stock Exchange (ASX) continues, with the two parties facing off in an interlocutory hearing on Thursday, in which lawyers of the payment identity company argued that the company would suffer reputational damage if the ASX was able to publish its reasoning behind its trading suspension.
As Finance Magnates reported, iSignthis has been suspended from trading indefinitely since October last year, as the ASX and the Australian Securities and Investments Commission (ASIC) complete their inquiries as to the nature of its revenue and contracted service fee revenue, following Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term in its share price.
In response, the payments identity solutions provider sued the ASX in the Federal Court. iSignthis alleges that in suspending the company from trading, the market operator had breached its own rules and the Corporations Act.
In the hearing, which lasted for the whole of Thursday, Peter Collinson, the lawyer for iSignthis said that the ASX document which provides its reasoning on the lengthy suspension should remain suppressed on the balance of convenience grounds.
iSignthis: ASX failed to make up its mind
According to a transcript of Thursday’s hearing seen by Finance Magnates, iSignthis lawyer Collinson referred to numerous language in the document, such as “It is not clear to the ASX”, “There are serious questions to be determined as to whether”, etc.
According to Collinson: “One of my purposes in just cantering through this material is, if nothing else, your Honour, to demonstrate the complexity of some of the issues. And then… this language, your Honour, reflecting a failure to make up its mind...”
Furthermore, iSignthis has argued in court that the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term suspended iSignthis from trading based on speculation in the media and that during its investigation, the ASX failed to take into account certain information as to the significance of gross processing turnover value (GPTV) in affecting the price of shares.
ASX accused of abusing its power
Acting for the ASX, Catherine Button, argued that, in fact, the market operator was already suffering from reputational damage by not publishing its reasonings behind the suspension, as it was unable to address shareholder concerns.
Button also said that iSignthis was "not an entity with an unblemished reputation” based on extensive reports and there was a “desire to know” why iSignthis was suspended from trading in October, as the market operator has been accused of abusing its power and being motivated by conflicts of interest.
“The ASX is in a situation where, in its inability to publish its reasons, it is unable to put to bed why there is a suspension and the reasons for it," she said.
As Finance Magnates reported in February, iSignthis made a 12.96 per cent strategic investment in NSX Limited, an operator of an Australian exchange. Therefore, making iSignthis a direct competitor of the ASX.
During the hearing, iSignthis lawyers also argued that the ASX has more power than the corporate regulators following the extension of certain listing rules. However, Button argued against this point, stating that the market operator was obliged to monitor and enforce listing rules.
The legal battle between iSignthis Ltd (ASX: ISX) and the Australian Stock Exchange (ASX) continues, with the two parties facing off in an interlocutory hearing on Thursday, in which lawyers of the payment identity company argued that the company would suffer reputational damage if the ASX was able to publish its reasoning behind its trading suspension.
As Finance Magnates reported, iSignthis has been suspended from trading indefinitely since October last year, as the ASX and the Australian Securities and Investments Commission (ASIC) complete their inquiries as to the nature of its revenue and contracted service fee revenue, following Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders can be successful in both low and high volatile environments, but the strategies employed are often different depending upon volatility. Why Too Much Volatility is a ProblemIn the FX space, lower volatile currency pairs offer less surprises, and are suited to position traders.High volatile pairs are attractive for many day traders, due to quick and strong movements, offering the potential for higher profits, although the risk associated with such volatile pairs are many. Overall, a look at previous volatility tells us how likely price will fluctuate in the future, although it has nothing to do with direction.All a trader can gather from this is the understanding that the probability of a volatile pair to increase or decrease an X amount in a Y period of time, is more than the probability of a non-volatile pair. Another important factor is, volatility can and does change over time, and there can be periods when even highly volatile instruments show signs of flatness, with price not really making headway in either direction. Too little volatility is just as problematic for markets as too much, we uncertainty in excess can create panic and problems of liquidity. This was evident during Black Swan events or other crisis that have historically roiled currency and equity markets. Read this Term in its share price.
In response, the payments identity solutions provider sued the ASX in the Federal Court. iSignthis alleges that in suspending the company from trading, the market operator had breached its own rules and the Corporations Act.
In the hearing, which lasted for the whole of Thursday, Peter Collinson, the lawyer for iSignthis said that the ASX document which provides its reasoning on the lengthy suspension should remain suppressed on the balance of convenience grounds.
iSignthis: ASX failed to make up its mind
According to a transcript of Thursday’s hearing seen by Finance Magnates, iSignthis lawyer Collinson referred to numerous language in the document, such as “It is not clear to the ASX”, “There are serious questions to be determined as to whether”, etc.
According to Collinson: “One of my purposes in just cantering through this material is, if nothing else, your Honour, to demonstrate the complexity of some of the issues. And then… this language, your Honour, reflecting a failure to make up its mind...”
Furthermore, iSignthis has argued in court that the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term suspended iSignthis from trading based on speculation in the media and that during its investigation, the ASX failed to take into account certain information as to the significance of gross processing turnover value (GPTV) in affecting the price of shares.
ASX accused of abusing its power
Acting for the ASX, Catherine Button, argued that, in fact, the market operator was already suffering from reputational damage by not publishing its reasonings behind the suspension, as it was unable to address shareholder concerns.
Button also said that iSignthis was "not an entity with an unblemished reputation” based on extensive reports and there was a “desire to know” why iSignthis was suspended from trading in October, as the market operator has been accused of abusing its power and being motivated by conflicts of interest.
“The ASX is in a situation where, in its inability to publish its reasons, it is unable to put to bed why there is a suspension and the reasons for it," she said.
As Finance Magnates reported in February, iSignthis made a 12.96 per cent strategic investment in NSX Limited, an operator of an Australian exchange. Therefore, making iSignthis a direct competitor of the ASX.
During the hearing, iSignthis lawyers also argued that the ASX has more power than the corporate regulators following the extension of certain listing rules. However, Button argued against this point, stating that the market operator was obliged to monitor and enforce listing rules.