The federal Government of Australia has raised the matter that market supervision powers will be transferred from the Australian Securities Exchange to the securities regulator. The objective of Australian Government is to target third quarter for shifting the frontline market supervision to the Australian Securities and Investments Commission.

On the contrary, Financial Services Minister, Chris Bowen said that the date of commencement was not set in stone. "I've said we would not sign off on the transfer of supervision until we were satisfied that it would work smoothly'', he said. Initially, ASIC had said that they are highly developed for planning the incorporation of existing supervision arrangements into its operations.

The proposal of ASIC, in which they gave an idea of taking on market supervision, will offer the regulator a direct control over the market it controls. Currently, ASX is performing the supervision role under a contract but this role is now partly replaced as the organization has been claimed as a profit-making operator of the market.

This implies that now, AISC will get new guidelines to control the market, which will also include emulating a disciplinary tribunal operating and it is currently under the control of ASX. ASIC has also hired 24 people from the old staff of ASX. Mr. Bowen is contended with the fact that ASIC had sufficient resources to tackle its increased powers.