ASIC Calls for Industry Action to Boost Australia's Capital Market Competitiveness

The Australian Securities and Investments Commission (ASIC) has convened senior market participants and financial services leaders to discuss ways to strengthen the competitiveness of Australia's capital markets amid rapid global financial innovation.

The initiative follows the release of a new report by the Digital Finance Cooperative Research Centre (DFCRC), which found Australia must accelerate the adoption of emerging market technologies or risk falling behind other financial centres. According to the report, financial markets are becoming increasingly automated, with shorter settlement cycles, extended trading hours, and the growing use of distributed ledger technology (DLT), artificial intelligence, and tokenised assets.

ASIC Commissioner Simone Constant said technological advances are reducing traditional geographic barriers to capital flows, making it easier for investors to access overseas markets. She stressed that Australia needs modern, resilient market infrastructure to remain an attractive destination for capital raising and investment.

The regulator said innovation presents opportunities to improve market efficiency through upgraded infrastructure, automated market surveillance, clearer regulatory pathways for new products, and stronger cooperation between regulators and industry. At the same time, ASIC warned that developments such as AI-driven trading, reliance on third-party technology providers, and the rise of social and gamified investing could create new operational and investor risks.

ASIC said the roundtable is part of its broader strategy to promote responsible innovation while maintaining market integrity and investor protection. The regulator plans to publish a summary of the discussions and outline practical actions to support the future development of Australia's capital markets.