ASIC Wants Feedback on Market Integrity Rule Updates

By Staff Writer

27th Aug 2025

Regulation

Regulation

Australia’s market watchdog, the Australian Securities and Investments Commission, also known as ASIC, is looking to update its Market Integrity Rules (MIRs) to keep pace with modern trading, and it’s asking for feedback from the industry.

Today, most trading in Australia is already handled by algorithms. In fact, ASIC says about 85% of equity trades, 94% of SPI 200 futures, and nearly half of three-year Treasury bond futures are executed right through automated systems.

The proposed changes aim to do the following:

• Streamline requirements and cut unnecessary complexity
• Align rules with global standards
• Add stronger safeguards for when algorithms go wrong, including mandatory “kill switches”

Some outdated requirements like the annual automated order processing notification, may also be scrapped. Firms will instead get more flexibility, with a conditional no-action position on late submissions from November 2025.

But ASIC also flagged some associated risks. AI-driven trading strategies, especially during volatile markets, could increase instability or trigger sudden swings. The regulator stressed that its rules will need to “evolve with changing technology and risks.”

The consultation is now open, and ASIC wants market participants to weigh in on how best to balance innovation in automated trading with protections against unintended consequences.

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