Menu

Admission of managed funds with internal market makers put on pause by ASIC


Share
ASIC office

Australian regulator ASIC has requested earlier today that exchange market operators do not admit any managed funds that do not disclose their portfolio holdings daily. Operators should also have internal market makers while it undertakes a review during the remainder of this calendar year.

What is Internal market making?

Internal market making occurs when a managed fund’s responsible entity acts as the market maker for its own fund on the fund’s behalf, either by submitting bids and offers itself or by engaging a transaction agent that executes its instructions. Funds using this model generally do not disclose their portfolio holdings daily. They are usually actively managed funds. Internal market making funds represent approximately 6% of exchange traded products by funds under management.

ASIC intends to review the regulatory settings for exchange traded managed funds that use internal market makers.

The pause on new admissions of these products by market operators (including funds whose admission applications are currently being considered) will remain in place until further notice.

The complete announcement can be seen here.

Related News

arrow

Admission of managed funds with internal market makers put on pause by ASIC

0

Send this to a friend