Securities market regulators’ use of the ‘please explain’ queries sanction and its power of compliance

Chapple, Larelle June, Truong, Phuong, & Welsh, Michelle (2013) Securities market regulators’ use of the ‘please explain’ queries sanction and its power of compliance. In Corporate Law Progressive Possibilities : Corporate Law Teachers Association (CLTA) Conference 2013, 3-5 February 2013, Australia National University, Canberra, ACT. (Unpublished)

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The aim of this study is to investigate the compliance impact of price queries issued by a securities market operator to its participating firms. Market operators in Australia and New Zealand, such as the Australian Securities Exchange and the New Zealand Securities Exchange, have the regulatory power in their rules to issue queries to its market participants to explain unusual fluctuations in trading price or volume in the market. The operator will issue a price query where it believes that the market has not been fully informed as to price relevant information. Responsive regulation has informed much of the regulatory debate in securities laws in our region. We posit that price queries are one strategy that a market operator can use in communicating its enforcement expectations to its stakeholder. However, whilst responsive regulation informs regulatory choices, an alternate view seeks to explain why participants respond to these regulatory strategies, and we use disclosure behaviour after price queries to test compliance behaviour

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ID Code: 59458
Item Type: Conference Paper
Refereed: No
Keywords: market sensitive announcements; , price query; s, securities regulation; , securities enforcement
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100)
Australian and New Zealand Standard Research Classification > LAW AND LEGAL STUDIES (180000) > LAW (180100) > Corporations and Associations Law (180109)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Current > Schools > School of Accountancy
Copyright Owner: Copyright 2013 The Authors
Deposited On: 28 Apr 2013 22:52
Last Modified: 30 Apr 2013 21:24

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