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8/12/2019 ASIC Senate Enquiry Submission
1/16
BY_ PXB@MJG MYYUEY HCLG
EKBMC4bsx.trb`mjg.mssuesNgkbmc.ilk
WEH B@@XEYY4 www.sirmh`.ilk/bsx\trb`mjg\mssues/ilcceitmljs
YEJBPE EJRUMX] YUHKMYYMLJY
(Litlher - 8>29)
Xe4 Poe peralrkbjie la toe Bustrbcmbj Yeiurmtmes bj` Mjvestkejts
Ilkkmssmlj (BYMI)
MJPXL@UIPMLJ
CMJFY PL YU^^LXPMJG MJALXKBPMLJ
Bttbiokejt 2.24 Hbifgrluj` tl BYMI Ilkpcbmjts (Expbj`e`) 3CMJF:
Bttbiokejt 2.84 Bj Lvervmew la BY_ Prb`mjg bj` mts Xegucbtmlj 3CMJF:
Bttbiokejt 2.94 Prb`mjg bj` Xegucbtlry Mssues M`ejtmame` 3CMJF:
BYMI Ilkpcbmjt 8>29-2 Bug 21, 8>29 3CMJF:
BYMI Ilkpcbmjt 8>29-8 Yep 21, 8>29 3CMJF:
BYMI Ilkpcbmjt 8>29-9 Lit 20, 8>29 3CMJF:
BYMI Ilkpcbmjt 8>29-0 Jlv 0, 8>29 3CMJF:
Yolrt Yeccmjg Mssue Bug 88, 8>29 3CMJF:
@MYICBMKEX4Bcc mjalrkbtmlj presejte` bs resebrio obs heej slurie` arlk hrlfer trb`mjg
reilr`s bj` regmstry reilr`s. Womce toe butolr iljsm`ers toe `btb tl he biiurbte bj` toe
sukkbrmes presejte` bs hemjg bj biiurbte reaceitmlj la trb`mjg, jl gubrbjtees bre gmvej
bs tl toe recmbhmcmty la `btb lr bjy iljicusmljs put alrwbr`. Mjvestlrs bre ejilurbge` tl
`l toemr lwj @ue @mcmgejie bj` tl kbfe up toemr lwj kmj`s mj regbr` tl toe ibuses la
bjy trej`s presejt mj trb`mjg `btb.
mailto:[email protected]://www.scribd.com/doc/176829241/Additional-Information-9-1-%E2%80%93-Background-to-ASIC-Complaints?secret_password=2fo1a7jaa476o1cpg495http://www.scribd.com/doc/176831871/Additional-Information-9-2-%E2%80%93An-Overview-of-Asx-Trading-and-its-Regulation?secret_password=mwtq8pzgwl8kf6jqtjahttp://www.scribd.com/doc/176823054/Additional-Information-9-3-%E2%80%93-Trading-and-Regulatory-Issues?secret_password=uqejvw52nds7u08vt7ahttp://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/168461175/8-2-ASIC-Complaint-2013-2http://www.scribd.com/doc/175891474/ASIC-Complaint-2013-3-CuDeco-Trading-Issues-January-Through-May-2013?secret_password=g4749pb76kgs92vclivhttp://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqyhttp://www.scribd.com/doc/176501405/CuDeco-Trading-Complaint-Re-Short-Selling-on-Aug-21-2013?secret_password=l0tludwjgc8nbbc63a8http://www.scribd.com/doc/176501405/CuDeco-Trading-Complaint-Re-Short-Selling-on-Aug-21-2013?secret_password=l0tludwjgc8nbbc63a8http://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqyhttp://www.scribd.com/doc/175891474/ASIC-Complaint-2013-3-CuDeco-Trading-Issues-January-Through-May-2013?secret_password=g4749pb76kgs92vclivhttp://www.scribd.com/doc/168461175/8-2-ASIC-Complaint-2013-2http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/176823054/Additional-Information-9-3-%E2%80%93-Trading-and-Regulatory-Issues?secret_password=uqejvw52nds7u08vt7ahttp://www.scribd.com/doc/176831871/Additional-Information-9-2-%E2%80%93An-Overview-of-Asx-Trading-and-its-Regulation?secret_password=mwtq8pzgwl8kf6jqtjahttp://www.scribd.com/doc/176829241/Additional-Information-9-1-%E2%80%93-Background-to-ASIC-Complaints?secret_password=2fo1a7jaa476o1cpg495mailto:[email protected]8/12/2019 ASIC Senate Enquiry Submission
2/16
8
ILJPEJPY
Yeitmlj Lje .....^g. 9
2.>.2 CMJFY PL YU^^LXPMJG MJALXKBPMLJ
Yeitmlj Pwl .....^g. 0
2.>.8 MJPXL@UIPMLJ
Yeitmlj Poree ........ ^g. 7
2.>.9 HBIFGXLUJ@ PL POE YUHKMYYMLJ BJ@ B YUKKBX] LA @EBCMJGY WMPO BYMI
B^^EJ@M_ 2 - ILJPE_P
Hbifgrluj` Mjalrkbtmlj Iljierjmjg Wlrc` Kbrfets bj` Poe Bustrbcmbj Kbrfet... ^g 22
B^^EJ@M_ 8BJ MJ@MIBPMLJ LA POE E_PEJP LA ILXXU^PMLJ MK^BIPMJG AMJBJIMBC KBXFEPY
Amjes Mjiurre` hy toe Kbdlr Mjvestkejt Hbjfs Mj Xeiejt ]ebrs... ^g 25
8/12/2019 ASIC Senate Enquiry Submission
3/16
9
2.>2 Yeitmlj Lje
BHLUP POE ILK^CBMJP - CMJFY PL YU^^LXPMJG MJALXKBPMLJ
ILK^CBMJP ALIUY
Poe suhkmssmlj aliusses lj mssues baaeitmjg Bustrbcmbs amjbjimbc kbrfets wmto bj ekpobsms lj BYMIs
abmcure mj hemjg bhce tl aujitmlj bs bj eaaeitmve regucbtlr. Poe kbtters rbmse` bppcy tl toe mteks h, `,
bj` a mj regbr` tl toe Perks la Xeaerejie.
Perks la Xeaerejie
b. BYMI's ejbhcmjg cegmscbtmlj, bj` woetoer toere bre bjy hbrrmers prevejtmjg BYMI arlk aucamccmjg mts cegmscbtmve
respljsmhmcmtmes bj` lhcmgbtmljs6
h. toe biilujtbhmcmty arbkewlrf tl womio BYMI ms suhdeit, bj` woetoer toms jee`s tl he strejgtoeje`6
i. toe wlrfmjgs la BYMI's ilccbhlrbtmlj, bj` wlrfmjg recbtmljsomps, wmto ltoer regucbtlrs bj` cbw ejalriekejt hl`mes6
`. BYMI's ilkpcbmjts kbjbgekejt plcmimes bj` prbitmies6
e. toe prlteitmljs baalr`e` hy BYMI tl ilrplrbte bj` prmvbte womstcehclwers6 bj`
a. bjy recbte` kbtters.
Mssues iljierjmjg toe Bustrbcmbj amjbjimbc kbrfets, pbrtmiucbrcy toe BY_, bre `eservmjg la bj ejqumry mjtoemr lwj rmgot, bj` BYMIs biilujtbhmcmty mj regbr` tl mts `ebcmjg wmto kbtters presejte` tl mt requmres b
irmtmibc revmew.
YU^^LXPMJG MJALXKBPMLJ
Poe ilkpcbmjt ms struiture` wmto bj MJPXL@UIPMLJ tobt presejts toe ilkpcbmjt bj` bcsl cmjfs tl
supplrtmjg mjalrkbtmlj jeiessbry tl gbuge olw b abmcure hy BYMI tl prlvm`e eaaeitmve regucbtmlj la lur
amjbjimbc kbrfets ms suio bj mkplrtbjt kbtter alr toe Bustrbcmbj pelpce bj` toe Bustrbcmbj eiljlky.
B cmst la b``mtmljbc mjalrkbtmlj tobt obs heej prlvm`e` mj supplrt la toe suhkmssmlj ms prlvm`e` heclw.
2. Poe Hbifgrluj` tl BYMI Ilkpcbmjts 3CMJF:8. Bj Lvervmew la Kbtters Mkpbitmjg toe BY_ bj` olw mt ms hemjg Xegucbte` 3CMJF:
9. Poe Prb`mjg bj` Xegucbtlry Mssues Hrlugot tl Bttejtmlj 3CMJF:
IL^MEY LA BYMI ALXKBC ILK^CBMJPY
Bj bppreimbtmlj la toe kbjjer mj womio BYMI peralrks mts regucbtlry aujitmlj ibj he gbuge` hy vmewmjg
mjalrkbtmlj presejte` tl mt, lhservmjg olw kbtters bre obj`ce` bj` toej bssessmjg mts amj`mjgs. Poe
cmjfs tl reiejt ilkpcbmjts bre prlvm`e` heclw.
Xeaerejie Cl`ge` Biiess
BYMI Ilkpcbmjt 8>29-2 Bug 21, 8>29 3Xeaerejie Cmjf4 8>29-2:BYMI Ilkpcbmjt 8>29-8 Yep 21, 8>29 3Xeaerejie Cmjf4 8>29-8:
BYMI Ilkpcbmjt 8>29-9 Lit 20, 8>29 3Xeaerejie Cmjf4 8>29-9:
BYMI Ilkpcbmjt 8>29-0 Jlv 0, 8>29 3Xeaerejie Cmjf4 8>29-0:
Yolrt Yeccmjg Mssue Bug 88, 8>29 3Xeaerejie CMJF:
LPOEX
EKBMC Ilkkujmibtmljs wmto BYMI Laamiers 3CMJF:
Ybkpces la uhcmsoe` Xesebrio
Hclg B``resswww.sirmh`.ilk/iu`eil\resebrio
Iu@eil Xesebrio ^bpers
1.2 1.8 1.9 1.0 1.5
Xesebrio lj Ltoer BY_ Ilkpbjmes
7.2 7.8 7.9 7.0
Poe supplrtmjg mjalrkbtmlj ms irmtmibc mj bssessmjg toe eaaeitmvejess la BYMIs rlce bs kbrfet regucbtlr. Woej toe usubc
respljse la We `ljt obve b ^rlhcek ms kebsure` bgbmjst toe wemgot la evm`ejie tobt toere bre prlhceks, bj` very
sermlus prlhceks bt tobt, ljcy toej ibj toe eaaeitmvejess la toe iurrejt regmke he prlpercy bssesse`. Mt ms olpe` tobt toe
Yejbte ejqumry bits bs toe ibtbcyst tl mkpcekejt toe iobjges jeiessbry tl gubrbjtee bj eaaeitmve regucbtlry ejvmrljkejt
alr Bustrbcmbs amjbjimbc kbrfets, woere bcc `ebcmjgs bre heylj` reprlbio bj` mj toe hest mjterests la toe jbtmlj.
MK^LXPBJP ILKKEJP
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-Trading-Complaint-Re-Short-Selling-on-Aug-21-2013?secret_password=l0tludwjgc8nbbc63a8http://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqyhttp://www.scribd.com/doc/175891474/ASIC-Complaint-2013-3-CuDeco-Trading-Issues-January-Through-May-2013?secret_password=g4749pb76kgs92vclivhttp://www.scribd.com/doc/168461175/8-2-ASIC-Complaint-2013-2http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/176823054/Additional-Information-9-3-%E2%80%93-Trading-and-Regulatory-Issues?secret_password=uqejvw52nds7u08vt7ahttp://www.scribd.com/doc/176831871/Additional-Information-9-2-%E2%80%93An-Overview-of-Asx-Trading-and-its-Regulation?secret_password=mwtq8pzgwl8kf6jqtjahttp://www.scribd.com/doc/176829241/Additional-Information-9-1-%E2%80%93-Background-to-ASIC-Complaints?secret_password=2fo1a7jaa476o1cpg4958/12/2019 ASIC Senate Enquiry Submission
4/16
0
2.>.8 YEIPMLJ PWL4 MJPXL@UIPMLJ
Poe mssues hrlugot tl bttejtmlj alr iljsm`erbtmlj hy toe Yejbte Ilkkmttee bre twlalc`.
Poe amrst iljierjs toe stbte la lur amjbjimbc kbrfets heibuse la systekmi prlhceks baaeitmjg toe BY_ tobt
bcclw slpomstmibte` mjvestlrs tl ujabmrcy tbfe webcto arlk bcc ltoers wmto mkpujmty. Mt liiurs torlugo
kbjmpucbtmve trb`mjg heobvmlurs tobt obve aclurmsoe` heibuse BYMI ms jlt eaaeitmvecy ibrrymjg lut mts
bpplmjte` rlce bs kbrfet regucbtlr. Poe prlhceks obve heej m`ejtmame` torlugo resebrio usmjg ekpmrmibc
kbrfet `btb tobt obs revebce` mssues mkpbitmjg b pbrtmiucbr BY_ cmste` ilkpbjy, bs wecc bs stlifs birlss
toe hrlb`er kbrfet. Bt rmsf ms `mkmjmsoe` pbrtmimpbtmlj mj toe kbrfets heibuse la biute kbrfet mjtegrmty
mssues, bj` uctmkbtecy, b ilkprlkmse` kbrfet ujbhce tl eaaeitmvecy peralrk toe rlces requmre` la mt.
Yeilj`cy toere bre mssues bsslimbte` wmto toe wby ilkpcbmjts bre `ebct wmto hy BYMI. ^ersljbc
expermejie bj` lhservbtmljs mj regbr` tl toe expermejies la ltoer ilkpcbmjbjts lver b 8.5 yebr perml`,
obve revebce` bj bpprlbio hy toe regucbtlr tobt obs heej iobrbitermze` hy, b cbif la ilkkujmibtmlj,
cljg `rbwj lut smcejies, b tej`ejiy tl jlt evej bifjlwce`ge ilkpcbmjts, toe use la mkpersljbc gejermi
repcmes mj `ebcmjg wmto toe puhcmi, bppbrejt `msmjterest mj kbtters presejte`, abmcure tl b`equbtecyb``ress kbtters tobt bre presejte`, prlirbstmjbtmlj, b abmcure tl keet expeitbtmljs bj` mj`ee` mts lwj
iobrter, bj` toe bpprlvmjg la omgocy questmljbhce trb`mjg heobvmlurs wmtolut prlper expcbjbtmlj.
Gejerbccy, BYMI obs tbfej mjlr`mjbte bklujts la tmke tl replrt hbif evejtubc amj`mjgs womio bre bcklst
bcwbys la toe type jl bitmljwmcc he tbfej - tobjf ylu alr ylur ilkpcbmjt.
Mkplrtbjtcy, resebrio obs solwj tobt mt ms cmfecy tobt BYMI ms bpprlvmjg heobvmlurs, lr bt cebst jlt bitmjg
lj heobvmlurs, womio ma prlpercy mjvestmgbte` wluc` solw hrebioes la trb`mjg gum`ecmjes bj`/lr
trbjsgressmljs bgbmjst cbws wmtomj toe Ilrplrbtmljs Bit bj` cbws uj`er toe durms`mitmlj la toe BIII. B
aurtoer abmcmjg la BYMI ms mj jlt tbifcmjg mssues tobt kby he `maamiuct tl b``ress uj`er iurrejt
brrbjgekejts hy b`vmsmjg Prebsury bj` seefmjg supplrt perobps torlugo cegmscbtmve iobjge, sl tobt
systekmi mssues mkpbitmjg lur kbrfets ibj he eaaeitmvecy `ebct wmto.
Poms suhkmssmlj prlvm`es b rbjge la suppcekejtbry mjalrkbtmlj mjicu`mjg, toe iljtext mj womio toe Bustrbcmbj
amjbjimbc kbrfet amj`s mtseca, cbrgecy heibuse la toe exiesses la toe cbrge hbjfs lver toe cbst `eib`e, kuio la mt
mjvlcvmjg womte ilccbr irmke bj` kuio la mt pcbimjg toe wlrc`s amjbjimbc systek mj delpbr`y (reaer Bppej`mx 2
bj` Bppej`mx 8). Poe mkpbit la toe mjvestkejt hbjfs mj gclhbc kbrfets, wmto toemr puso alr teiojlclgmibc
mjjlvbtmlj bj` toemr ejilurbgekejt la regucbtlrs bj` kbrfet lperbtlrs tl biiept iobjges tl toe wby
kbrfets lperbte, bj` alr toe rbjge la prl`uits tobt ibj he laaere`, obs kebjt tobt mt obs heej `maamiuct tl
b`equbtecy kljmtlr, supervmse bj` regucbte rb`mibccy iobjge` kbrfets. Mt kebjs tobt toe prlhceksbiilkpbjymjg toe iobjges obve bcsl heej almste` ljtl toe BY_. Ylke la toese prlhceks obve heej
omgocmgote` hy toe resebrio uj`ertbfej mj wbys tobt obvejt prevmluscy heej hrlugot tl jltmie mj toe
estbhcmsokejt press. Poe hbifgrluj` kbtermbc mjicu`e` mj toe suhkmssmlj bcsl ilvers toe kbtters rbmse` wmto
BYMI, mjicu`mjg toe trb`mjg mssues tobt urgejtcy jee` b``ressmjg. Poe mssues obve sermlus mkpcmibtmljs alr toe
kbrfets mjtegrmty bj` toe oebcto bj` sustbmjbhmcmty la toe Bustrbcmbj eiljlky.
Abmcures hy BYMI tl iljstruitmvecy b``ress prlhceks tobt bcclw sobre prmie kbjmpucbtmlj tl tbfe pcbie wmto
mkpujmty, kebjs tobt laamimbc rebssurbjies bhlut abmr bj` trbjspbrejt kbrfets bre abr reklve` arlk toe
rebcmty abie` hy retbmc mjvestlrs, seca-auj`e` retmrees bj` skbcc prmvbte mjvestlrs wol bre bcc pcbie` bt toekeriy la tolse wolse prmvmcege` plsmtmljs mj toe kbrfet bcclw toek tl ujabmrcy `lkmjbte ltoer
pbrtmimpbjts. Bcsl mkpbite` bre Bustrbcmbj wlrfers wol bre alrie` tl obve explsure tl b suhstbjtmbccy
ilkprlkmse` kbrfet torlugo ilkpucslry superbjjubtmlj.
8/12/2019 ASIC Senate Enquiry Submission
5/16
8/12/2019 ASIC Senate Enquiry Submission
6/16
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JLPE4
Mj recbtmlj tl toe Yejbte Ejqumry hemjg bhce tl eaaeitmvecy revmew BYMIs peralrkbjie iljierjmjg toe
trb`mjg mssues presejte`, mt ms mkplrtbjt tobt ilkkmttee kekhers obve bj uj`erstbj`mjg la toe jbture la
prlhceks m`ejtmame` hy resebrio, toe extejt la toe prlhceks birlss toe BY_ bj` toe mkpbit tobt toe
prlhceks bre obvmjg lj toe amjbjimbc kbrfets bj` mj`ee` toe Bustrbcmbj eiljlky. Ljcy toej ibj b true
du`gekejt he kb`e bhlut BYMIs bitmljs mj emtoer mgjlrmjg lr jlt eaaeitmvecy b``ressmjg cbrge jukher la
ilkpcbmjts, bj` wobt toe cljg terk mkpcmibtmljs kmgot he la toemr iollsmjg jlt tl bit.
Yupplrtmjg kbtermbc mjicu`es toe Bppej`mies bttbioe` tl toms `liukejt, toe cmjfs reaerre` tl mj toe
alcclwmjg seitmlj (Yeitmlj =.>.8) bj` toe mjterjet cmjfs prlvm`e` torlugolut toe suhkmssmlj tobt `rbw
bttejtmlj tl recevbjt ke`mb brtmices.
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2.>.9 YEIPMLJ POXEE4 Hbifgrluj` tl toe Yuhkmssmlj bj` b Yukkbry la @ebcmjgs wmto BYMI
Cmjfs tl Yupplrtmjg Mjalrkbtmlj
Evejts resuctmjg mj ilkpcbmjts hemjg reaerre` tl toe regucbtlr, tlgetoer wmto b `etbmce` hbifgrluj` tl
toe trb`mjg mssues m`ejtmame` hy resebrio, bre auccy lutcmje` mj toe suppcekejtbry mjalrkbtmlj bvbmcbhce
arlk toe alcclwmjg bttbiokejts.
Bttbiokejt 2.24 Hbifgrluj` tl BYMI Ilkpcbmjts (Expbj`e`) 3CMJF:
Bttbiokejt 2.84 Bj Lvervmew la BY_ Prb`mjg bj` mts Xegucbtmlj 3CMJF:
Bttbiokejt 2.94 Prb`mjg bj` Xegucbtlry Mssues M`ejtmame` 3CMJF:
Hbifgrluj` tl toe Ilkpcbmjt bj` b Yukkbry la @ebcmjgs
B sukkbry la `ebcmjgs wmto BYMI ms prlvm`e` heclw. B aucc revmew ms bvbmcbhce bs B``mtmljbc Mjalrkbtmlj 2.2
@eiekher 8>2> tl Kby 8>22
B jukher la ilkpcbmjts (? mj bcc) iljierjmjg bjlkbclus `btb trej`s were alrwbr`e` tl toe regucbtlr
alcclwmjg pllr sobre prmie peralrkbjie hy Iu@eil Cmkmte` bj` b cbif la respljsmvejess hy toe sobre
prmie tl plsmtmve bjjlujiekejts.
Poe bpprlbio tbfej hy toe ilkpcbmjbjt wbs tl alrwbr` bjlkbclus regmstry bj` hrlfer `btb tl toe BYMI
bssukmjg tobt mt wluc` obve toe `esmre, toe resluries bj` toe expertmse tl qumifcy reslcve kbtters.
Kby 29, 8>22
BYMI lrgbjmze` b teceiljaerejie tl b``ress kbtters rbmse` mj toe ilkpcbmjts. Bater b cejgtoy `msiussmlj,
BYMI b`vmse` tobt toey `m`jt obve bjy prlhceks wmto toe trb`mjg tbfmjg pcbie bj` tobt toe sobre prmie
seeke` bhlut rmgot.
B keetmjg sukkbry wbs prepbre` hy toe ilkpcbmjbjt bj` suhkmtte` tl BYMI alr iljamrkbtmlj tobt we
were lj toe sbke wbvecejgto hut jl aurtoer ilrresplj`ejie wbs ejtere` mjtl. Poe kmjutes bre
bvbmcbhce bs Bppej`mx 8 la b revmse` ilkpcbmjt alrwbr`e` tl BYMI mj Bugust 8>29.
Xeaer:BYMI Ilkpcbmjt 8>29-2 (Bppej`mx 8, ^g. 299)
Km`-8>22 Ljwbr`s- Yobreolc`er resebrio resuke` bj` b hclg smte wbs irebte` tl puhcmso toe resucts
Uplj reaceitmlj toe tecepolje iljaerejie `m`jt b``ress toe `btb mssues presejte` (m.e., b clt la toe
BYMI expcbjbtmljs were hbse` lj lpmjmlj hlr`ermjg lj iljdeiture, bj` toe ejtmtmes respljsmhce alr
suspmimlus `btb trej`s were jlt m`ejtmame` lr toe trej`s evej `msiusse`). Xecuitbjie alr kbtters tl
he `msiusse` lr evej expcbmje` rbmse` arustrbtmljs gmvej tobt trb`mjg rekbmje` oebvmcy
ilkprlkmse`. Mt wbs `eim`e` tl ilj`uit aurtoer resebrio bj` tl alius lj wobt kmgot he
respljsmhce alr trb`mjg bjlkbcmes evm`ejt mj ekpmrmibc `btb.
Pl bssmst mjtereste` sobreolc`ers bj` mjvestlrs bj` tl mjvmte ejqumry, toe resebrio wbs plste` tl bj
mjterjet hclg smte. Poe trbjspbrejiy prlvm`e` wbs lj toe hbsms tobt ma Ilkpbjy auj`bkejtbcs bj`
Ilkpbjy prlgress obve jl eaaeit lj toe sobre prmie, toej mjvestlrs bre ejtmtce` tl fjlw bhlut bjy
trb`mjg mssues tobt kmgot he suspej`mjg toe kbrfets jbturbc prmimjg aujitmlj.
Xesebrio amj`mjgs were plste` ljwww.sirmh`\iu`eil\resebriohegmjjmjg mj ebrcy Litlher 8>22
http://www.scribd.com/doc/176829241/Additional-Information-9-1-%E2%80%93-Background-to-ASIC-Complaints?secret_password=2fo1a7jaa476o1cpg495http://www.scribd.com/doc/176829241/Additional-Information-9-1-%E2%80%93-Background-to-ASIC-Complaints?secret_password=2fo1a7jaa476o1cpg495http://www.scribd.com/doc/176831871/Additional-Information-9-2-%E2%80%93An-Overview-of-Asx-Trading-and-its-Regulation?secret_password=mwtq8pzgwl8kf6jqtjahttp://www.scribd.com/doc/176831871/Additional-Information-9-2-%E2%80%93An-Overview-of-Asx-Trading-and-its-Regulation?secret_password=mwtq8pzgwl8kf6jqtjahttp://www.scribd.com/doc/176823054/Additional-Information-9-3-%E2%80%93-Trading-and-Regulatory-Issues?secret_password=uqejvw52nds7u08vt7ahttp://www.scribd.com/doc/176823054/Additional-Information-9-3-%E2%80%93-Trading-and-Regulatory-Issues?secret_password=uqejvw52nds7u08vt7ahttp://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd_cudeco_research/http://www.scribd_cudeco_research/http://www.scribd_cudeco_research/http://www.scribd_cudeco_research/http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/176823054/Additional-Information-9-3-%E2%80%93-Trading-and-Regulatory-Issues?secret_password=uqejvw52nds7u08vt7ahttp://www.scribd.com/doc/176831871/Additional-Information-9-2-%E2%80%93An-Overview-of-Asx-Trading-and-its-Regulation?secret_password=mwtq8pzgwl8kf6jqtjahttp://www.scribd.com/doc/176829241/Additional-Information-9-1-%E2%80%93-Background-to-ASIC-Complaints?secret_password=2fo1a7jaa476o1cpg4958/12/2019 ASIC Senate Enquiry Submission
8/16
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Xeaerrbcs tl BYMI
Bs resebrio pbpers were plste` tl toe weh bt cebst lje sobreolc`er, bitmjg ilkpcetecy mj`epej`ejtcy,
alrwbr`e` ebio replrt tl BYMI. Mj eaaeit BYMI wbs iljtmjuluscy mjalrke` la resebrio amj`mjgs. Poe
sobreolc`er obs cl`ge` b sepbrbte ilkpcbmjt, bj` mj pbrtmiucbr, ms `msbpplmjte` tobt BYMI wmcc jlt
prlpercy mjvestmgbte trb`mjg lj Bugust 2?, 8>2> woere omgo cevecs la iljausmlj bhlut Iu@eils
Xlifcbj`s reslurie were use` tl ibkluacbge omgocy kbjmpucbtmve trb`mjg heobvmlurs.
Bugust 2? trb`mjg rekbmjs b very kbdlr mssue. Poe bpprlbio wmto resebrio fjlwmjg toe iclse` vmew
b`lpte` hy BYMI lj bcc kbtters presejte`, wbs tl `ekljstrbte tobt trb`mjg ms ilkprlkmse` lj b `bmcy
hbsms bj` tobt mt obs heej tobt wby alr lver 9.5 yebrs. Pobt tbsf ms bcklst ilkpcete` wmto BYMI Ilkpcbmjt
8>29-0 3CMJF:womio aliusses lj reiejt seccmjg hy b kbdlr sobreolc`er resuctmjg mj obca b hmccmlj `lccbrs
hemjg strmppe` arlk toe kbrfet ibpmtbcmzbtmlj la toe ilkpbjy. Poe seccmjg ibj he vmewe` bs hemjg jlj-
gejumje bs mt `m`jt bppebr tl try bj` biomeve toe hest returjs alr toe olc`mjg. Jlj gejumje seccmjg wbs
kejtmlje` mj b reiejt Omgo Ilurt rucmjg tobt `ebct wmto kbrfet kbjmpucbtmlj 3CMJF:.
B alrkbc ilkpcbmjt aliussmjg lj sobre prmie kbjmpucbtmlj bsslimbte` wmto Bugust 2?, 8>2> trb`mjg wmcc he
alrwbr`e` tl BYMI bs sllj bs bcc trb`mjg mssues obve heej hrlugot tl bttejtmlj.
Ilkkejt bhlut toe systek regbr`mjg toe suhkmttmjg la ilkpcbmjts
B ilkpcbmjbjt soluc`jt obve tl gbtoer mjalrkbtmlj, `l toe resebrio, bj` presejt toe amj`mjgs tl
ejilurbge BYMI tl bit. Bcertmjg toe prlhcek ms bcc tobt soluc` he requmre`. Olwever obvmjg `lje bcc toe
resebrio mj bj bttekpt tl icebrcy `ecmjebte `uhmlus prbitmies bj` olw toey baaeit sobre vbcue, BYMI stmcc
obsjt alcclwe`-up, yet toe kbtters bre bcc supplrte` hy ekpmrmibc `btb ujbhce tl he expcbmje` mj terks
ltoer tobj kbjmpucbtmlj.
Mt kebjs tobt ilkpcbmjts tobt bre put wmtolut kuio evm`ejie bre cmfecy tl he `mskmsse` mkke`mbtecy.
Xeiejt Ilkpcbmjts
Xevmse` ilkpcbmjts obve reiejtcy heej suhkmtte` tl BYMI mj toe abie la jew amj`mjgs bj` `msturhmjg
trej`s mj cljg terk. @btb hbse` evm`ejie strljgcy suggests tobt trb`mjg mj Iu@eil Cmkmte` obs heej
severecy ilkprlkmse` lj b `bmcy hbsms. Prb`mjg bjlkbcmes bre ujbhce tl he expcbmje` torlugo
cegmtmkbte kbrfet bitmvmty womio kebjs tobt sobre prmie kbjmpucbtmlj ms cmfecy tl he respljsmhce.
Xeiejt ilkpcbmjts alrwbr`e` tl BYMI bre sukkbrmze` heclw bj` bre bvbmcbhce arlk toe cmjfs prlvm`e`.
B``mtmljbc Mjalrkbtmlj 2.04 BYMI Ilkpcbmjt 8>29-2 Bug 21, 8>29 3Icmif4 8>29-2:
B``mtmljbc Mjalrkbtmlj 2.54 BYMI Ilkpcbmjt 8>29-8 Yep 21, 8>29 3Icmif4 8>29-8:
B``mtmljbc Mjalrkbtmlj 2.14 BYMI Ilkpcbmjt 8>29-9 Lit 20, 8>29 3Icmif4 8>29-9:
B``mtmljbc Mjalrkbtmlj 2.74 BYMI Ilkpcbmjt 8>29-0 Jlv 0, 8>29 3Icmif4 8>29-0:
Bj b``mtmljbc ilkpcbmjt ilvermjg bjlkbclus cevecs la solrt seccmjg lj Bugust 82, 8>29 wbs bcsl
alrwbr`e` lj Bugust 88, 8>29.
B``mtmljbc Mjalrkbtmlj 2.?4 Iu@eil Prb`mjg Ilkpcbmjt Xe-Yolrt Yeccmjg lj Bug 88, 8>29 3CMJF:
BYMI respljse tl reiejt ilkpcbmjts(Arlk Bug 21, 8>29)
Mt obs heej extrekecy `maamiuct tl lhtbmj respljses arlk BYMI, emtoer tl ejqumrmes bhlut woetoerilkpcbmjts obve heej reiemve`, lr mj regbr` tl cegmtmkbte questmljs tobt obve heej presejte`. Mt ms
`msbpplmjtmjg heibuse toe `btb trej`s revebce` hy resebrio bre extrekecy persubsmve bj` suggest tobt
sobre prmie kbjmpucbtmlj ms tbfmjg pcbie lj b `bmcy hbsms wmto jltomjg hemjg bitmlje`.
http://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqyhttp://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqyhttp://www.lexology.com/library/detail.aspx?g=ee9f417f-75cc-4d20-9717-ebac1fdd70e4http://www.lexology.com/library/detail.aspx?g=ee9f417f-75cc-4d20-9717-ebac1fdd70e4http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.scribd.com/doc/168461175/8-2-ASIC-Complaint-2013-2http://www.scribd.com/doc/168461175/8-2-ASIC-Complaint-2013-2http://www.scribd.com/doc/175891474/ASIC-Complaint-2013-3-CuDeco-Trading-Issues-January-Through-May-2013?secret_password=g4749pb76kgs92vclivhttp://www.scribd.com/doc/175891474/ASIC-Complaint-2013-3-CuDeco-Trading-Issues-January-Through-May-2013?secret_password=g4749pb76kgs92vclivhttp://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqyhttp://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqyhttp://www.scribd.com/doc/176501405/CuDeco-Trading-Complaint-Re-Short-Selling-on-Aug-21-2013?secret_password=l0tludwjgc8nbbc63a8http://www.scribd.com/doc/176501405/CuDeco-Trading-Complaint-Re-Short-Selling-on-Aug-21-2013?secret_password=l0tludwjgc8nbbc63a8http://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqyhttp://www.scribd.com/doc/175891474/ASIC-Complaint-2013-3-CuDeco-Trading-Issues-January-Through-May-2013?secret_password=g4749pb76kgs92vclivhttp://www.scribd.com/doc/168461175/8-2-ASIC-Complaint-2013-2http://www.scribd.com/doc/160561633/8-1-ASIC-Complaint-2013-1http://www.lexology.com/library/detail.aspx?g=ee9f417f-75cc-4d20-9717-ebac1fdd70e4http://www.scribd.com/doc/176500137/ASIC-Complaint-2013-4-CuDeco-Trading-Issues-as-M-G-Sold-Out?secret_password=1pqa9iud3754zdf45vqy8/12/2019 ASIC Senate Enquiry Submission
9/16
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Ekbmc Prbjsirmpts4
Poe alcclwmjg cmjf prlvm`es biiess tl sukkbrmes la ekbmc iljverbtmljs wmto toree BYMI Laamimbcs. Poey
prlvm`e slke hbifgrluj` mjtl toe wby ilkpcbmjts bre `ebct wmto hy BYMI.
B``mtmljbc Mjalrkbtmlj 2.=4 Ekbmc Prbjsirmpts 3CMJF:
Ltoer Xesebrio
Xesebrio Iobpters `etbmcmjg hlto Iu@eil trb`mjg `btb (Iobpter 1) bj` trb`mjg `btb recbte` tl ltoer
ilkpbjmes (Iobpter 7) prlvm`e aurtoer evm`ejie tl supplrt toe mssues m`ejtmame` bj` replrte`.
Xeaerwww.sirmh`.ilk/iu`eil\resebrio
Iobpter 1 3Icmif lj toe Iobpters: 1.2 1.8 1.9 1.0 1.5
Iobpter 7 3Icmif lj toe Iobpters: 7.2 7.8 7.9 7.0
Ltoer Mjmtmbtmves
Mj b``mtmlj tl toe ilkpcbmjts alrwbr`e` tl BYMI toere bre ltoer recbte` kbtters tobt jee` tl he tbfej
mjtl biilujt mj bssessmjg BYMIs respljses tl toe trb`mjg mssues presejte` .
Poey mjicu`e4
l Poe Ilkpbjy mtseca obs alrwbr`e` resebrio kbtermbc bj` obs requeste` tobt BYMI cllf mjtl kbtters.
l Poe Ilkpbjy obs requeste` la BYMI tobt mt he reklve` arlk toe solrt seccmjg cmst la stlifs heibuse
la kbjmpucbtmve prbitmies tbfmjg pcbie.
l Bt cebst lje hrlfer obs suhkmtte` b alrkbc ilkpcbmjt bhlut mssues iljerjmjg Iu`eil trb`mjg.
l Yeverbc sobreolc`ers obve ilkpcbmje` bhlut Iu@eil mssues bj` lje mj pbrtmiucbr obs prlvm`e` bj
mj`epej`ejt suhkmssmlj tl toe Yejbte ejqumry.
@espmte bcc la toe represejtbtmljs tl BYMI lver b very cljg perml` la tmke hy severbc pbrtmes, jltomjg obs
heej `lje tl b``ress iljierjs. B``mtmljccy, BYMI obs iljamrke` tl bt cebst lje sobreolc`er tobt mt `lesjt
amj` bjytomjg mj toe sobreolc`er resebrio tobt requmres alcclwmjg up, yet mt obsjt ilkkujmibte` tobt
mjalrkbtmlj tl toe perslj ilj`uitmjg toe resebrio bj` wol obs amce` severbc ilkpcbmjts. Mt ms b strbjge bj`
ujprlaessmljbc wby tl lperbte. Bcsl, mt obsjt prlvm`e` bjy evm`ejie tl ekljstrbte woy bjlkbclus
trb`mjg heobvmlurs bj` `uhmlus trb`mjg mssues bre biieptbhce, woej sobre prmie kbjmpucbtmlj bppebrs tl
he toe ljcy pcbusmhce expcbjbtmlj.
Pl use bj bjbclgy toe smtubtmlj ms cmfe toe plcmiekbj lj toe hebt jlt seemjg bjytomjg wrljg wmto `rug
pusomjg, lr evej wlrse. Ma BYMI ibjt see b prlhcek woej mt ms stbrmjg toek mj toe abie wobt olpe `les bjy
sobreolc`er obve la toemr mjvestkejts hemjg trbsoe` torlugo kbjmpucbtmve solrt seccmjg, bcglrmtoks tuje`
tl tbrget clwer prmies bj` ilccusmve mjterests cllfmjg tl semze lwjersomp la ujabmrcy `evbcue` bssets
Mjbitmlj hy BYMI obs ilmjim`e` wmto toe kbrfet ibpmtbcmzbtmlj la toe Ilkpbjy hemjg reiejtcy strmppe` la
brluj` brluj` obca b hmccmlj `lccbrs hetweej Duje bj` Bugust. Poe sobre prmie scukp wbs cbrgecy toe resuct
la `uhmlus cevecs la solrt seccmjg ilmjim`mjg wmto b kbdlr sobreolc`er `epbrtmjg toe regmster uj`er
extrekecy l`` imriukstbjies womio bre b``resse` mjBYMI Ilkpcbmjt 8>29-0.Mt ms bcsl la jlte tobt `espmte
toe exmt arlk toe regmster la tobt pbrtmiucbr sobreolc`er, `bmcy kbjmpucbtmve trej`s bre stmcc amrkcy mj pcbie.
Poe systek ms oebvmcy recmbjt lj BYMI bttej`mjg tl bcc iljierjs tobt mkpbit toe oebcto la lur amjbjimbc kbrfets,
olwever toe tmke obs brrmve` woej toe questmlj bs tl Wol regucbtes toe regucbtlr
8/12/2019 ASIC Senate Enquiry Submission
11/16
22
B^^EJ@M_ 2 - ILJPE_P
Hbifgrluj` Mjalrkbtmlj Iljierjmjg Wlrc` Kbrfets bj` toe Bustrbcmbj Kbrfet
Mj bttekptmjg tl ilkpreoej` toe iurrejt eiljlkmi cbj`sibpe bj` toe eaaeitmvejess lr ltoerwmse la toe
regucbtlry systek glverjmjg Bustrbcmbs amjbjimbc kbrfets, mt ms oecpauc tl revmew woere we obve ilke arlk
lver toe cbst severbc `eib`es.
GCLHBC AMJBJIMBC YIBJ@BCY
Rulte4Ilrplrbte kbcaebsbjie obs ebrje` b pcbie bkljg toe `eamjmjg toekes la toe cbst `eib`e-bj`-b-
obca, oecpmjg tl gmve hmrto tl toe presejt gclhbc reiessmlj bj` toe liiupy Wbcc Ytreet klvekejt. Ylke la
toe wlrst ilrplrbte biilujtmjg sibj`bcs mjicu`e.3Xeaerejie Cmjf:
Wbste Kbjbgekejt Il 2==? $2.7 Hmccmlj mj abfe ebrjmjgs
Ejrlj Ilrplrbtmlj 8>>2 $70 Hmccmlj clses alr sobreolc`ers
Wlrc`ilk 8>>8 Mjacbte` toemr bssets hy $22 hmccmlj
Pyil 8>>8 Ytlce $20> kmccmlj bj` mjacbte` ebrjmjgs hy $55> kmccmlj
Oebcto Yluto 8>>9 Mjacbte` ebrjmjgs hy $2.0 hmccmlj
Are``me Kbi 8>>9 $5 Hmccmlj mj ebrjmjgs kms-stbte`
BMG 8>>5 $9.= hmccmlj biilujtmjg arbu`
Ceokbj Hrltoers 8>>? Om` lver $5> hmccmlj mj clbjs sbces
Herjme Kb`laa 8>>? Xbj b $1?.5 hmccmlj ^ljzm sioeke
Hebr Ytebrjs 8>>? B $299 per sobre ilkpbjy hlugot lut alr $2> per sobre
Poe cmst ms hy jl kebjs exicusmve hut `rbws bttejtmlj tl ilkpbjmes kmsceb`mjg sobreolc`ers bj`
repbtrmbtmjg cbrge bklujts la kljey mjtl @mreitlrs plifets. Mj reiejt tmkes ylu ibj b`` tl toe kmx toe
Cmhlr Mjterest rbte amxmjg sibj`bc, toe suh-prmke sibj`bc cbrgecy respljsmhce alr toe GAI, ejergy trb`mjg
sibj`bcs bj` toe cmfes la toe Clj`lj Wobce sibj`bc woere trb`es hy D^ Klrgbj wejt wrljg tl toe tuje la
$1 hmccmlj.
Bt toe ilre la toese sibj`bcs bj` kbjy ltoers bre toe bitmvmtmes la toe cbrge mjvestkejt hbjfs ce` hy toe
cmfes la Glc`kbj Ybios, D^ Klrgbj, @eutsioe Hbjf, OYHI, Hbricbys, Imtm Grlup eti. Poese glcmbtos ruj toe
wlrc` la amjbjies bj` mj kbjy respeits `mitbte tl glverjkejts gmvej toemr tll-hmg-tl-abmc-stbtus biqumre`
torlugo kbssmve ceverbge. Poe ilrruptmlj torlugolut toese lrgbjmzbtmljs ms wm`ecy bifjlwce`ge` bj`
slke la toe ejlrklus amjes cevme` alr mj`msiretmljs bre prlvm`e` bs Bppej`mx 8.
Mkplrtbjtcy, toe kbdlrmty la toese mkkejsecy `msire`mte` trb`mjg oluses obve `mvmsmljs brluj` toe wlrc`
tobt lperbte lj clibc exiobjges suio bs toe BY_. Poey obve heej grbjte` cmiejses tl ruj toemr omgo
arequejiy bcglrmtokmi trb`mjg systeks (OAP)bater pbymjg very suhstbjtmbc aees tl toe clibc exiobjge
lwjers. Jemtoer toe BY_ lr BYMI, hy toemr lwj b`kmssmlj, fjlw kuio bhlut olw trb`mjg bcglrmtoks wlrf
bj` wobt eaaeit toey obve lj toe kbrfet. Poe abit tobt toey obve heej biiepte` wmtolut questmlj ms
plssmhcy testbkejt tl toe BY_ cllfmjg tl gejerbte b``mtmljbc revejues alr toeksecves, regbr`cess la toe
iljsequejies alr toe kbrfets mjtegrmty. BYMIs mjbhmcmty tl see toe `bjgers wmto toek evej woej
presejte` wmto `bkjmjg mjalrkbtmlj, ms qumte bjltoer kbtter.
OAP amrks obve heilke smgjmamibjt clhhymsts la UY Iljgress cllfmjg alr iljiessmljs arlk regucbtlrs tl
bcclw ujaettere` biiess tl toe kbrfets. 3CMJF:. OAP systeks gejerbccy get biiepte` lj Wbcc Ytreet bj` bre
toej bre explrte` tl exiobjges brluj` toe gclhe mj b arbjiomse cmfe brrbjgekejt. Yobo Gmcbjm, b sebslje`
veterbj la Wbcc Ytreet bj` alrker oe`ge auj` kbjbger regbr`s OAP trb`mjg bs b sibk bj` mj bj brtmice
http://www.accounting-degree.org/scandals/http://www.bloomberg.com/news/2010-11-09/high-frequency-firms-accelerate-lobbying-donations-to-head-off-u-s-rules.htmlhttp://www.bloomberg.com/news/2010-11-09/high-frequency-firms-accelerate-lobbying-donations-to-head-off-u-s-rules.htmlhttp://www.accounting-degree.org/scandals/8/12/2019 ASIC Senate Enquiry Submission
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3Xeaer4 Omgo-Arequejiy Prb`mjg4 B Kbrfet @estrlymjg Yibk: prlvm`es slke rbre mjsmgots mjtl wobt ms
liiurrmjg mj exiobjges brluj` toe gclhe. Mt prlvm`es b iomccmjg wbfe-up ibcc alr toe `bjgers abie` hy lur
kbrfets.
Yobreolc`er resebrio mjtl Iu@eil Cmkmte` obs m`ejtmame` slke la toe mkpbit la OAP bcglrmtoks womio
mjicu`es4
l ilccusmlj tbfmjg pcbie hetweej hrlfers6
l ibrtec-cmfe bitmvmty6
l bhslcute iljtrlc lver prmies hlto mj bitmve trb`mjg bj` `urmjg buitmljs6 bj`
l toe cbrge vlcukes la wbso trb`es tbfmjg pcbie woere toere ms jl iobjge tl hejeamimbc lwjersomp.
Bcc bitmvmtmes bre mccegbc olwever jl bttekpt ms kb`e tl bu`mt biilujts tl `eterkmje wol ms respljsmhce alr
toe trb`es. Womce slke bttekpt ms hemjg kb`e tl b``ress lhvmlus prlhceks suio bs OAP arljt rujjmjg
lr`ers, bj` ruces iljierjmjg `brf pllcs womio obve mjmtmbccy heej suiiessauc biilr`mjg tl reiejt replrts
olwever jlwoere jebr ejlugo eaalrt ms hemjg kb`e. Poe ecepobjt mj toe rllk ms b ilkpcete cbif la
trbjspbrejiy woere mt ms jlt plssmhce tl qumifcy estbhcmso toe m`ejtmtmes respljsmhce alr trb`mjg bjlkbcmes bj`
tl kbfe toek respljsmhce alr toemr trb`mjg bitmljs. Mkplrtbjtcy, systekmi sobre prmie kbjmpucbtmlj smkpcy
iluc`jt liiur ma toe kbrfet wbs trucy trbjspbrejt, bj` gmvej toe extejt la rlrts replrte` lj bj bcklst `bmcy
hbsms, mt ms surprmsmjg tobt toe regucbtlr tlcerbtes suio omgo cevecs la lpbque bitmvmty bs mt recbtes tl trb`mjg, tl
settcekejts bj` tl seiurmtmes cej`mjg.
Mt `lesjt oecp bttekpts tl b``resstrb`mjg iljierjs woej toe regucbtlr mtseca bppebrs ilkpcetecy
`msmjtereste` mj bcc kbtters presejte`. Ma toe mjalrkbtmlj wbs mjilrreit mt wluc` he bj ebsy kbtter tl
expcbmj woy, bj` `mskmss toe mssues, olwever tobt obsjt obppeje`.
Poe smtubtmlj `rbws bttejtmlj tl b iucture la kbfmjg kljey hy strmppmjg webcto arlk ltoers, b heobvmlur
tobt ms ejtrejioe` mj kl`erj kbrfets bj` womio ms exekpcmame` hy kbjmpucbtmve solrt seccmjg prbitmies bj`
wmto bcglrmtoks iljtmjuluscy bhce tl iljtrlc prmies. Poe systek la mj`ex mjvestmjg prlvm`es aurtoer
acexmhmcmty tl iljtrlc prmies la tbrgete` stlifs bs wecc. Cljg glje bre toe `bys la gejerbtmjg webcto torlugo
prl`uitmve ejterprmse cmfe, alr exbkpce, `msilvermjg b kbdlr kmjerbcs `eplsmt bj` `eveclpmjg mt mjtl b
smgjmamibjt cljg cmae kmje, toerehy laaermjg returjs alr mjvestlrs, grlwto bj` dlhs alr regmljbc Bustrbcmb bj`
tbx reiempts alr toe Bustrbcmbj Glverjkejt. Ilkpbjmes tobt bttekpt tl `l tobt bre obkpere` bt every
turj. Usubccy wobt obppejs ms tobt prmies bre kbjmpucbte` tl severecy uj`ervbcue` cevecs, toe ilkpbjy ms
alrie` tl exiessmvecy `mcute toe regmster torlugo ioebp pcbiekejts mj lr`er tl rbmse auj`s tl b`vbjie toeprldeit, bj` uctmkbtecy, lwjersomp ms gejerbccy seiure` hy toe ejtmty heomj` toe kbjmpucbtmlj torlugo bj
lpplrtujmstmi tbfelver. Poe BY_ ms cmttere` wmto ilkpbjmes tobt obve heej tbfej lver ioebpcy, bj`
ujabmrcy, hy suio bj bpprlbio.
POE BUYPXBCMBJ KBXFEP
Bustrbcmb tll obs ob` mts sobre la ilrplrbte kbcaebsbjie bj` mj reiejt tmkes we obve seej hrmhery bj`
fmifhbif sibj`bcs bsslimbte` wmto toe Bustrbcmbj Woebt Hlbr`, Cemgotlj Kmjmjg, toe Xeserve Hbjf bj` toe
BY_ mtseca. Hrmhery bccegbtmljs iljierjmjg b kbdlr ilrplrbte ejtmty cmfe Cemgotlj ms lje tomjg, hut tl obve
sibj`bcs bsslimbte` wmto jltbhce mj`ustry grlups cmfe toe Bustrbcmbj Woebt Hlbr`, bj` mj`ee` toe ceb`mjghbjfmjg ejtmty mj toe jbtmlj mtseca, toe Xeserve Hbjf, ms qumte bjltoer. Mt ms bitubccy qumte `msbstrlus. Mt ms
`msbstrlus alr Bustrbcmbs reputbtmlj lj toe gclhbc stbge bj` `msbstrlus alr Bustrbcmbj husmjess bj` toe cljg
terk prlspeits la toe Bustrbcmbj eiljlky.
http://econintersect.com/b2evolution/blog3.php/2012/10/14/high-frequency-trading-market-destroying-scamhttp://econintersect.com/b2evolution/blog3.php/2012/10/14/high-frequency-trading-market-destroying-scam8/12/2019 ASIC Senate Enquiry Submission
13/16
8/12/2019 ASIC Senate Enquiry Submission
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toe GAI wbso-up woej Pljy @'Bclmsml wbs BYMI Iobmrkbj, toere bre `msbsters suio bs Ytlrk Amjbjimbc, Lpus
^rmke, BHI cebrjmjg, Cmat Ibpmtbc, Hbhilif bj` Hrlwj eti. tobt bcc rbmse questmljs bhlut toe eaaeitmvejess la
lur regucbtlry systek. Mt ms la jlte tobt healre dlmjmjg BYMI, Kr @'Bclmsml oec` toe plsmtmlj la Kbjbgmjg
@mreitlr bj` Iomea Exeiutmve Laamier bt toe Bustrbcmbj Yeiurmtmes Exiobjge (BY_).
^llr regucbtmlj kmgot he bttrmhute` tl mjilkpetejie lr cbif la resluries hut mt kby bcsl he cmjfe` tl
recbtmljsomps hetweej tolse wol obve prlkmjejt plsmtmljs wmtomj toe systek, mjicu`mjg toe ceb`ers la toeBY_, BYMI, toe Hbjfs bj` plwerauc ilrplrbtmljs. ^erobps slke la toe `eimsmlj kbfmjg, lr cbif la `eimsmlj
kbfmjg mj toe ibse la toe IHB, ms `ue tl strbtegmi baamcmbtmljs hetweej plwer pcbyers. m.e., b `egree la ecmtmsk
ejtrejioe` wmtomj toe systek.
Poe cbxmty mj toe systek requmres b``ressmjg mj toe strljgest plssmhce terks bj` sl `les toe smtubtmlj
woere systekmi trb`mjg mssues obve heej `ekljstrbte` usmjg ekpmrmibc `btb lver cljg perml`s la tmke yet
toe regucbtlr obs solwj jl mjterest. Mt ms essejtmbc tl amx toe prlhceks mkke`mbtecy, pbrtmiucbrcy mj toe
mjterests la Bustrbcmbj wlrfers wolse superbjjubtmlj auj`s bre vucjerbhce mj toe kbrfet bs mt iurrejtcy
lperbtes.
Poe mj`ustry ms expeite` tl grlw arlk toe iurrejt $2.9 trmccmlj tl $9 trmccmlj hy 8>2= 3CMJF:. Mt represejts bj
ejlrklus bklujt la kljey tl he put bt rmsf, espeimbccy gmvej toe questmljbhce bitmvmtmes hy iustl`mbjs mj
kbfmjg ltoer pelpces kljey bvbmcbhce alr `uhmlus seiurmtmes cej`mjgbitmvmty. Poe mjirebse` iljtrmhutmljs
regbr`mjg superbjjubtmlj mjtrl`uie` hy toe alrker Cbhlur Glverjkejt ilmjim`mjg wmto b jewcy eceite`
Cmherbc Ilbcmtmlj, represejts bj lpplrtuje tmke tl icebj up toe amjbjimbc kbrfets. Xealrks tl b``ress
systekmi prlhceks bj` tl ejsure tobt BYMI eaaeitmvecy peralrks toe dlh ejtruste` tl mt bre bj mkperbtmve.
http://www.deloitte.com/view/en_AU/au/industries/financialservices/8ebc63ec49101210VgnVCM100000ba42f00aRCRD.htmhttp://en.wikipedia.org/wiki/Tony_D'Aloisiohttp://www.deloitte.com/view/en_AU/au/industries/financialservices/8ebc63ec49101210VgnVCM100000ba42f00aRCRD.htm8/12/2019 ASIC Senate Enquiry Submission
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B^^EJ@M_ 8BJ MJ@MIBPMLJ LA POE E_PEJP LA ILXXU^PMLJ MK^BIPMJG AMJBJIMBC KBXFEPY
Amjes Mjiurre` hy toe Kbdlr Mjvestkejt Hbjfs mj Xeiejt ]ebrs
Poe alcclwmjg cmjfs emtoer sukkbrmze toe amjes cevme` bgbmjst toe kbdlr mjvestkejt hbjfs mj reiejt yebrs
alr ejgbgmjg mj mccegbc heobvmlurs lr toey `rbw bttejtmlj tl mssues iljierjmjg toemr lperbtmljs. Poe cmst ms
prlvm`e` bs b sbkpce tl `ekljstrbte toe extejt la prlhceks bj` ms hy jl kebjs mjicusmve la bcc
wrljg`lmjgbs lr bcc amjes cevme` tl toms seitlr.
l Glc`kbj Ybios amje` $2.5 kmccmlj alr trb`mjg gcmtio
l Glc`kbj Ybios Xeiemves Amje Pobt Wmcc Pbfe Mt 80 Kmjutes Pl ^by Laa
l Glc`kbj Amje` alr Abmcmjg tl Hclif Prb`er's $?.9 Hmccmlj Het ...
l Glc`kbj Ybios obj`e` reilr` $55>k amje lver Yuh-^rmke trbjsbitmlj
l Olw Ilrrupt ms Glc`kbj Ybios