asx cited for conflict of interest

  1. 437 Posts.
    Where in the Western World can I find a business like the ASX ie. it is a regulator and a profit organisation in the same line of business (with exception to the other stock exchanges!). I thought these types of companies were only found in Venezuela, China or Russia?

    "THE global insurer QBE has added to the pressure on the Federal Government to strip the Australian Securities Exchange of its powers to regulate the sharemarket, arguing the ASX has a conflict of interest in its dual role as operator and watchdog.

    Angered by an attack on QBE's share price by short sellers over the past few weeks, chairman John Cloney told shareholders yesterday the Australian Securities and Investments Commission would be better suited to undertake the role held by the ASX.

    In a thinly veiled attack on the ASX's widely perceived failure to rein in hedge funds and other investors prepared to deliberately drive down company share prices, Mr Cloney urged the corporate and market regulators to take a more aggressive stance in protecting shareholder interests.

    But the ASX was not the entity to take on that role, he said: its position as a company listed on its own exchange - and from which it derived a large amount of income from higher trading volumes - put it into direct conflict with its job as the market regulator.

    "As market operator, it is not in the ASX's interest to take steps to decrease trading volumes. They clip the ticket in every transaction, so the more transactions, the better," Mr Cloney said in his address to QBE's annual meeting in Sydney."

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