Australian stock exchange operator ASX has a dual role, as it is also in charge of regulating the market. However, that function may soon be taken away from it, as the new Federal Government is looking into how to deal with serious issues made visible by the global credit crisis and stock market turmoil. These include short-selling and stock lending, and the effect of margin lending. Financial Services Minister Nick Sherry and Treasurer Wayne Swan will soon receive a report on the matter, and are expected to move the regulatory responsibilities to the Australian Securities & Investments Commission. Confidence among major corporations in Australia in ASX's capabilities as regulator is also declining.
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