Continuous disclosure

ASX’s requirement for listed entities to make continuous disclosure of material information is central to the orderly conduct and integrity of ASX’s market.  This requirement is directed at ensuring that the market is fully informed at all times and no investor, or any one group of investors, is disadvantaged by lack of material information when making investment decisions.

Continuous disclosure requirements

The requirement for listed entities to make continuous disclosure of material information is contained in Listing Rule 3.1.  This Rule is regarded as a particularly important rule and central to the orderly conduct and integrity of ASX’s market.  It is based on the following principle:

Timely disclosure must be made of information which may affect security values or influence investment decisions, and information in which security holders, investors and ASX have a legitimate interest.

The continuous disclosure regime is based on the Rules that form part of the listing contract between ASX and listed entities, and is supported by Federal companies’ legislation.

The regime is given effect through the continuous supervision of listed entities by the Issuers Unit.  This continuous supervision is also facilitated by ASX’s world-class technological platforms.  They include a company announcements system (Company Announcement Platform or CAP) that enables simultaneous and rapid dissemination of disclosures made by listed companies, and a surveillance system (SMARTS) that assists in monitoring trading activity.

ASX Markets Supervision directs considerable resources to the continuous supervision of listed entities’ compliance with the continuous disclosure regime.  While the Issuers Unit has responsibility for monitoring compliance, it is supported in this effort by the Surveillance unit.

Guidance Note 8: Continuous Disclosure (PDF 199KB) provides further details about the continuous disclosure regime and the application of Listing Rule 3.1.