ASX Education & Research Program

The ASX Education and Research Program (ERP) was established by the ASX Compliance board in 2007 as a measure to manage perceived conflicts that might arise if penalties imposed on market participants by ASX as market supervisor were applied to its own benefit. Since then, surplus monies arising from the penalties imposed by the ASX Disciplinary Tribunal, net of certain expenses incurred by ASX in bringing matters before the Disciplinary Tribunal, have been set aside and applied to the ERP. Monies in the ERP have been used to fund various education and research activities, including the cost of conducting training courses for participants on supervisory matters.

The responsibility for supervising real-time trading on Australia’s licensed markets and for monitoring the conduct of participants on those markets was transferred from ASX to ASIC on 1 August 2010. Accordingly, it is no longer appropriate that the ASX take a lead role in educating participants on supervisory matters, since they are matters for which ASIC now has regulatory responsibility.

The mission statement and terms of reference for the ERP have therefore been revised to reflect the changes in ASX’s supervisory responsibilities.

Mission statement

The mission of the ERP is to raise awareness of, and promote compliance with, ASX's operating rules (including its listing rules) and to promote confidence in the operations of ASX's markets and clearing and settlement facilities.

Terms of reference

The terms of reference for the ERP are to undertake activities in the interests of ASX's stakeholders which:

• raise awareness of ASX operating rule requirements;
• improve the ability of listed entities to comply with ASX's listing rules;
• improve the ability of market, clearing and settlement participants to comply with ASX's operating rules;
• educate the market on trends and issues in compliance;
• contribute to a better compliance culture within ASX’s stakeholder groups; or
• otherwise promote confidence in the operations of ASX’s markets and clearing and settlement facilities.

Diversity

The ERP has been actively involved in promoting the Corporate Governance Council's Principles and Recommendations relating to diversity.

This includes creating a diversity resources page on the ASX website to assist listed entities in implementing their diversity programs.

Webinars for Participants

Webinar	Presenter
Capital Monitoring – Introduction to Risk Based Capital Requirements	Marisa Khan	view
Capital Monitoring – Participant Obligations and Common Problems	Trully Smith	view
Capital Monitoring – Counterparty Risk Requirement	Trully Smith	view
Capital Monitoring – Position Risk Requirement	Trully Smith	view
Capital Monitoring – Other Risk Requirements	Marisa Khan	view

Requests for funding

The ERP is willing to consider requests to arrange or fund education events or research projects, provided they comply with the ERP's mission statment and terms of reference above.  Any requests in this regard should be forwarded to the ERP at the address below.

Email:  asxerp@asx.com.au or write to:

ASX Education and Research Program
ASX Limited
Level 1, 20 Bridge St
Sydney  NSW 2000
Facsimile: 02 9227 0428

A note on the future of the ERP

ASX remains responsible for the investigation and enforcement of supervisory matters that occurred prior to 1 August 2010. To ensure that these supervisory matters are finalised as quickly as possible, the Board of ASX Compliance has determined that it is appropriate to apply some of the surplus funds in the ERP towards the expenses that will be incurred in their finalisation. This includes the costs of taking on additional resources, including secondees from ASIC, to facilitate the speedy resolution of these matters, and the costs of running and supporting the Disciplinary Tribunals. The remaining funds in the ERP will continue to be available for use in educational events and research projects, as before.

With the responsibility for supervising real-time trading on Australia’s licensed markets and for the conduct of participants on those markets having transferred to ASIC, it is anticipated that the number of ASX enforcement matters and the aggregate level of penalties imposed by ASX against participants will both diminish significantly and the ERP consequently will not receive the level of funding it has received in the past. The Board of ASX Compliance intends to reassess the future of the ERP and its funding arrangements once the run-off of pre-1 August 2010 enforcement matters has been completed.