We are subject to extensive regulation in Australia. The Corporations Act 2001, (“Corporations Act”) establish a system of cooperative regulation of securities markets, market participants and listed companies.
Licensed market operators (“LMOs”) such as NSX, conduct the day-to-day administration and regulation of the Australia’s securities markets under the close supervision of, and subject to extensive regulation, oversight and enforcement by, the Australian Securities and Investments Commission (“ASIC”).
LMOs are licensed by the Australian Federal Government. Before they may permit the registration of an exchange as an LMO, the Federal Minister must determine, among other things, that the exchange has a set of rules that is consistent with the requirements of the Corporations Act, and that the financial, technology and human resources are sufficient to operate a market.
The Corporations Act and the requirements thereunder, as well as each LMO’s own rules, impose on the LMOs many regulatory and operational responsibilities, including the day-to-day responsibilities for market trading, issuer admission and disclosure, and elements of market participant oversight. The LMOs work together with ASIC for the purposes of market supervision.
Each LMO has separate rules and guidance pertaining to its market participants and listed companies. Market Participants that choose to become members of our exchange are subject to the rules of and regulation by this market.
LMOs are subject to ASIC oversight, as prescribed by the Corporations Act, including periodic and special assessments by ASIC.
In addition to its other LMO responsibilities, as a listing market, NSX is also responsible for overseeing each listed company’s compliance with Listing Rules of the exchange. Our Admissions department evaluates applications submitted by issuers interested in listing their securities on NSX to determine whether the quantitative and qualitative listing standards have been satisfied. Once securities are listed, the Market Surveillance department monitors each issuer’s on-going compliance with Listing Rules and Corporations Act requirements.