ASIC Eases Emergency Measures for Equity Market Participants
- ASIC has also revoked its directions to limit the number of trades executed each day.

The Australian Securities and Investments Commission (ASIC) has published a letter to all equity market participants this Thursday, reminding them to act appropriately in order to ensure Australia’s equity markets remain resilient.
Furthermore, the authority has also revoked its directions issued to nine large equity markets participants to limit the number of trades executed each day. As Finance Magnates reported, ASIC told large equity market participants to limit the number of trades executed each day on the 15th of March.
Under the watchdog’s directions, firms had to reduce their number of executed trades by up to 25 per cent from the levels executed on the to Friday prior to the letter being sent. Therefore, high volume participants and their clients had to actively manage their volumes.
ASIC eases measures as 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 lessens
ASIC has decided to ease its measures following the equity market participants taking the appropriate steps to reduce their number of executed trades. According to the watchdog, this has contributed to the more efficient settlement preparation and reduced failure rates, combined with the overall stabilisation of trading activity, as COVID-19 volatility lessens.
“ASIC will closely monitor the behaviour of participants and take further action where necessary. ASIC will also undertake a review of the broader trends in trading activity, and where appropriate consult with industry on any proposed regulatory changes,” the regulator said in its statement today.
Following ASIC’s statement, the Australian Financial Markets Association (AFMA) has welcomed the guidance in relation to the volume of share trading for equity market participants.
“AFMA acknowledges the steps taken recently by market participants, ASX and Chi-X to ensure that the equity market remains resilient during periods of exceptionally high volume trading,” the industry body said.
“The Australian equity market is highly regarded, both as a source of capital for Australian companies and as a venue for investors to trade listed shares. This supports the national economy.”
The Australian Securities and Investments Commission (ASIC) has published a letter to all equity market participants this Thursday, reminding them to act appropriately in order to ensure Australia’s equity markets remain resilient.
Furthermore, the authority has also revoked its directions issued to nine large equity markets participants to limit the number of trades executed each day. As Finance Magnates reported, ASIC told large equity market participants to limit the number of trades executed each day on the 15th of March.
Under the watchdog’s directions, firms had to reduce their number of executed trades by up to 25 per cent from the levels executed on the to Friday prior to the letter being sent. Therefore, high volume participants and their clients had to actively manage their volumes.
ASIC eases measures as 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 lessens
ASIC has decided to ease its measures following the equity market participants taking the appropriate steps to reduce their number of executed trades. According to the watchdog, this has contributed to the more efficient settlement preparation and reduced failure rates, combined with the overall stabilisation of trading activity, as COVID-19 volatility lessens.
“ASIC will closely monitor the behaviour of participants and take further action where necessary. ASIC will also undertake a review of the broader trends in trading activity, and where appropriate consult with industry on any proposed regulatory changes,” the regulator said in its statement today.
Following ASIC’s statement, the Australian Financial Markets Association (AFMA) has welcomed the guidance in relation to the volume of share trading for equity market participants.
“AFMA acknowledges the steps taken recently by market participants, ASX and Chi-X to ensure that the equity market remains resilient during periods of exceptionally high volume trading,” the industry body said.
“The Australian equity market is highly regarded, both as a source of capital for Australian companies and as a venue for investors to trade listed shares. This supports the national economy.”