[2025] 177 Taxmann.com 739 (Article)
World Corporate Law News provides a weekly snapshot of corporate law developments from around the globe. Here’s a glimpse of the key corporate law update this week.
1. Securities Law
1.1 ASIC moves to modernise trading system rules to keep pace with technology and AI
On August 27, 2025, the Australian Securities and Investments Commission (ASIC) proposed changes to modernise market integrity rules (MIRs) governing market participants’ trading systems and automated trading. The proposed changes aim to keep pace with continued developments in technology, including artificial intelligence (AI).
They also aim to streamline and reduce complexity by applying consistent rules to any trading systems used by participants, irrespective of how orders are generated or submitted, and harmonise trading system rules and safeguards across the securities and futures markets and align our rules framework with the International Organisation of Securities Commissions principles and international best practice on algorithmic trading.
Market participants’ systems used for trading, order management and surveillance are now largely automated. ASIC estimates that algorithmic trading in Australian listed equities markets comprises approximately 85% of all trading, while in the futures markets about 94% in SPI 200 futures trading and 46% in three-year Treasury bond futures trading.
As trading systems and algorithmic trading strategies are continually developed and improved, striving for greater efficiency, the guardrails in ASIC’s market integrity rules also need to adapt to changing market practices, technology and risks.
During periods of heightened volatility, financial markets may be especially vulnerable to risks from unexpected activity by trading algorithms or AI. Risks may be increased when AI is deployed in conjunction with algorithmic trading. The complexity and opacity of AI models can make it challenging to comprehend their decision-making processes, thereby increasing the potential for unintended consequences.
ASIC’s proposed rule changes would extend the principles-based rules for trading systems to participants’ development, testing, use, and monitoring of their trading algorithms, and require ‘kill switches’ to enable the immediate suspension of aberrant trading algorithm activity.
ASIC also proposes to repeal some obsolete rules and reduce complexity as part of its focus on streamlining the Market Integrity Rules, including the repeal of the requirement for annual notifications to ASIC regarding automated order processing. To further ease the regulatory burden, ASIC will provide a conditional no-action position for securities participants regarding annual notifications, effective from November 2025.
Source – Official Announcement
2. Competition Law
2.1 MyCC invites public feedback on draft final market review on digital economy
On August 26, 2025, through the consultation paper, the Malaysia Competition Commission (MyCC) invites all stakeholders from various sectors to contribute valuable feedback on the Draft Final Report of the Market Review on the Digital Economy Ecosystem, conducted pursuant to section 11 of the Competition Act 2010.
This strategic review thoroughly analyses five (5) key areas identified as fundamental to Malaysia’s digital economy growth and development:
(a) Mobile Operating and Payment Systems;
(b) E-commerce (Retail Marketplace);
(c) Digital Advertising Services;
(d) Online Travel Agencies (OTAs); and
(e) Data Privacy & Protection (Cross-cutting theme).
Following the public consultation session with industry players on 19 August 2025 and a subsequent session with representatives from ministries and government agencies on 20 August 2025, the Malaysia Competition Commission (MyCC) presented the findings of its comprehensive market study.
The study highlights key competition issues, structural challenges within the market and critical policy considerations to strengthen the nation’s digital economy ecosystem. During the sessions, MyCC also shared a set of preliminary recommendations, both specific and broad, which will serve as the foundation for future policy development aimed at building a fairer, more innovative, and competitive digital ecosystem in Malaysia.
MyCC calls all stakeholders across sectors to provide their feedback on the preliminary recommendations contained in the final draft. This critical input will ensure our proposed framework reflects diverse perspectives from regulators, industry participants and the public, ultimately strengthening Malaysia’s digital economy landscape.
All submissions must be received by 14 September 2025, to be incorporated before the study’s finalisation in December 2025.
For comprehensive details about the market review and consultation process, interested parties may access the Draft Final Report and complete documentation via the official MyCC website at www.mycc.gov.my. Stakeholders may submit their formal feedback through our secure consultation portal or directly via email to ced-digitalmr@mycc.gov.my.
The public consultation period will remain open from 26 August 2025 until 14 September 2025. MyCC values all constructive contributions as we work collaboratively to strengthen and shape the future regulatory framework for Malaysia’s digital economy ecosystem.
Source – Press release
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