The Australian Securities and Investments Commission (ASIC) is urging market and financial services leaders to help bolster competitiveness in Australia’s capital markets in light of research suggesting Australia is lagging other jurisdictions in financial market innovation.
The Innovation in Financial Markets and Financial Market Infrastructure report, prepared by the Digital Finance Cooperative Research Centre (DFCRC) for ASIC, shows financial markets are increasingly becoming more automated, compressing settlement cycles and enabling extended hours in traditional markets, supported by technology developments.
This innovation is enabling new market models meaning the lines are blurring between digital-first and established financial services players, the report found.
On the back of these findings ASIC is bringing together senior leaders to consider practical ways to strengthen and modernise Australia’s capital markets, matching innovation opportunities with growth opportunities and capital need.
ASIC Commissioner Simone Constant said: “The core of ASIC's mission is to facilitate and improve Australia's financial system, and to promote confident and informed participation in that system. Ensuring that Australia's financial markets remain competitive and efficient is central to that mission.
“Geographic moats look like a thing of the past. The geographic barriers that once constrained the flow of capital are being eroded by technological developments. This makes it easier than ever for investors - wholesale and now retail - to invest offshore. The large-scale tech IPOs we're seeing are a symptom of this, and they will only become more common.”
Constant added that if Australia is to remain competitive it needs healthy capital markets underpinned by modern, resilient market infrastructure.
“Regulators and industry can work together to harness opportunities to best serve the Australian economy,” she added.
