The Australian Securities & Investments Commission (ASIC) has launched a consultation on proposed amendments to its market integrity rules for market participants’ trading systems and automated trading, aimed at keeping pace with technological developments including artificial intelligence (AI). The package is designed to apply more consistent requirements across trading systems regardless of how orders are generated or submitted, harmonise safeguards across securities and futures markets, and align the framework with International Organization of Securities Commissions principles and international best practice on algorithmic trading. The proposals would extend principles-based trading system rules to the development, testing, use and monitoring of trading algorithms, and introduce a requirement for “kill switches” to immediately suspend aberrant algorithm activity. ASIC also proposes to repeal obsolete requirements and reduce complexity, including removing the annual automated order processing notification to ASIC, and plans to provide a conditional class no-action position for securities participants for annual notifications due from November 2025. Feedback on the proposed changes is due by 22 October 2025, alongside a broader call for input on how to simplify and improve the market integrity rules and which provisions ASIC should prioritise for review.

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