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#1 17-04-2019 11:55:41

johnedward
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From: Paris - France
Registered: 21-12-2009
Posts: 2497
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Australia's ASIC now asking brokers for data

Australia's ASIC now asking brokers for data


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Australia's Security and Investment Commission (ASIC) has been quick to use its new intervention measures. A few days ago, the nation's congress accorded the regulatory agency a brand new set of powers, and the regulator started taking action before the new rules for Australian brokerages were implemented.

The regulator has issued a data gathering request to brokerages asking for a great deal of info.

Here, in short is what they're asking for:

Control of Europe's traders

The info that ASIC wants from brokerages indicates that it wants to know how the ESMA directives have affected the market since early 2018.

Brokerages are also asked to stratify their clients in terms of demographic data (date of birth, revenue, amount of money in the trading account, etc.). This is to help differentiate between professional and non-pro customers.

Also, brokers are asked to disclose the number of traders that have "moved" their trading to them from foreign countries since the beginning of last year.

Prospects for the future

In addition, brokerages must tell the ASIC if their staff's pay is linked to new business or their clients' gains/losses. Other data is also requested regarding the last 2 years (assets traded, position sizes, etc), making this a huge information collection undertaking for the local brokers.

The regulator is also asking for info on their A-Book and B-Book breakdown, what the broker's business model is, and how it allocates its traders between the A and B-books.

Obviously, it will probably take the brokerages quite a bit of time to gather and submit all of this information.

An effort that focuses on cold, hard information

This information gathering effort is different from what happened in Europe, where the regulatory agencies only started gathering the info from brokerages once the ESMA requirements went into effect. 

Admitedly, the ASIC is undertaking a much more cautious and benevolent approach than what occurred in Europe, where brokerage and trader viewpoints and suggestions were largely overlooked. 

That being said, the ASIC will probably take on an information-based approach in its effort.


"Anything worth having is worth going for - all the way." - J.R. Ewing

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