is asx liable for losses

Taken from www.asx.com.au,
there is much more on www.asx.com.au that lawyers or individuals could spend hours on

The ASX is often refered to as one of 'the regulators' of finacial market activity in Australia that monitors specific aspects of businesses of listed companies.
ASX does so as a condition of the licenses it has been granted by Commonwealth Government.

ASX's supervisory role
Monitoring
What ASX Operating Rules cover
ASX's regulatory licenses
ASIC and APRA regulation
ASX’s Operating Rules are not the same as legislation. However, their importance is acknowledged by the recognition given to them in the Corporations Act. ASX establishes its Operating Rules in consultation with market users and these are subject to oversight by ASIC and disallowance by the relevant Federal Government Minister (currently the Minister for Superannuation and Corporate Law).

This framework is set out below:




Purpose of Operating Rules
The rules exist primarily to identify the services that are being offered by ASX. The rules set out the terms on which ASX operates its markets and facilities and provides related services, the way those facilities and services operate, the roles of each party, as well as the rights and obligations of entities that participate in those markets and use these services (market infrastructure).

NOTE.-The Operating Rules are also one of the main tools that a market licensee uses to meet its obligations to ensure that the market is fair, orderly and transparent (market standard-setting).

ASX’s Operating Rules contain standards of conduct that are specific to ASX’s markets. The Operating Rules focus on:

Ensuring prices obtained on ASX’s markets are a reflection of genuine supply and demand

NOTE.-Information disclosure, so that information reflected in the prices at which transactions occur is reliable

NOTE.-Providing transparency, so that market users know with some degree of certainty whether, and at what prices, they can deal and can know the prices and volume of all individual transactions concluded

NOTE.-Balancing the interests of all market users so that no market users are favoured over others
Requiring Participant compliance with the terms of the multilateral contract

NOTE.-Structural CS arrangements to reduce systemic risk.

NOTE.-A breach of the rules is first and foremost a breach of the contract between an entity and ASX. When entering into a contract with ASX, an entity confers upon ASX contractual remedies, including the ability to refer a Participant to a Disciplinary Tribunal, to suspend an entity from trading, clearing or settlement activity or to remove an entity’s securities from official quotation. NOTE.-Some conduct may simultaneously result in a breach both of ASX rules and legislation. Where this is the case, it is possible that both ASX and ASIC will exercise their respective rights to take action in response to the breach. Legislation sets out Government (and community) public policy. A breach of legislation may result in civil or criminal action.

ASX market monitoring
ASX does not have delegated responsibility to ‘regulate’ or ‘supervise’ Participants or listed entities’ compliance with the law.
NOTE.-As a licensee, ASX is obliged to monitor conduct in relation to the markets and facilities it operates, to supervise the market and ensure compliance with its rules, and to refer to ASIC any suspected breaches of the law. Nor does ASX exercise oversight of a Market Participant’s compliance with contracts with other third parties, such as in relation to funding or lending arrangements.

ASX is not obliged to, and nor does it, oversee all aspects of a Participant or listed entity’s business. A corporation could undertake a range of activities. A typical corporate group structure may comprise a number of corporate entities, each responsible for undertaking discrete businesses. The choice of structure is one for the corporate group to determine. It is not uncommon for an ASX Participant to be one part of a larger corporate group.

NOTE.-ASX’s oversight of Participants is confined to monitoring those aspects of their business that directly relate to compliance with ASX’s Operating Rules, or with the operation of ASX’s markets or facilities. In practice, ASX only has the ability to oversee the relevant dedicated subsidiary (the Participant) which undertakes trading activity on ASX’s markets and which uses ASX’s CS facilities.

Thus, where a broker engages in OTC activity and enters into third party contracts – stock borrowing/lending (for equities or fixed income securities), re-purchase arrangements, margin lending, etc, these are not activities that are supervised or monitored by ASX. Where a broker in the same entity engages in stock lending or margin lending, calculations relating to the counterparty exposure of the broker in relation to such activities must be included in monthly and ad hoc capital returns lodged with ASX.

NOTE. VERY IMPORTANT.-ASX monitors the financial position of organisations that are Participants in its central counterparty clearing facilities with a view to managing the counterparty exposure of those facilities. ASX does not monitor the financial position of other market users (for example, a broker that arranges for its trades to be cleared by a third party) with a view to assuring clients of the solvency of those market users.


If i had lost a real lot on MON i would be asking the ASX and its Directors some serious questions about its own conduct in relation to MON.