Fed: No changes to ASX supervision recommended =2

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Fed: No changes to ASX supervision recommended =2

"However, even the perception of conflict can have an effect on investor confidenceand thus must be examined," the committee said.

The increasingly global nature of investment meant investors could take their capitaloverseas if they were dissatisfied with the ASX's integrity or its costs, it said.

While the ASX held an absolute monopoly in domestic listing and trading, it held only1.43 per cent of the global capital market and faced competition from foreign exchangesand new, alternative trading systems.

The ASX had implemented a new level of quality assurance by setting up the subsidiarycompany, ASX Supervisory Review (ASXSR), the committee said.

"The committee considers that the ASX should be given a period of time to demonstratethat initiatives such as ASXSR are sufficient to address the conflicts of interest issuesand that it is capable of continuing to uphold high standards while facing commercialchallenges as well."

AAP jph/daw/apm/br

KEYWORD: ASX 2 CANBERRA