The Australian Securities & Investments Commissions (ASIC) has released a consultation paper comment on the proposed operation of its Markets Disciplinary Panel.

ASIC is setting up the panel as part of the regulatory infrastructure for the supervision of real-time trading on Australia's domestic licensed financial markets. ASIC is expected to assume responsibility for this in August 2010.

In doing so, ASIC will be responsible for the supervision of its market integrity rules. It is proposed the Markets Disciplinary Panel will exercise ASIC's power to issue infringement notices and accept enforceable undertakings relating to breaches of those rules.

The panel will consist of people with appropriate market or professional experience and function as a peer-review body.

The Markets Disciplinary Panel is expected, as far as practicable, to take an approach similar to the existing ASX Disciplinary Tribunal. This will include imposing penalties and requiring remedial action generally consistent with those presently imposed or required by that tribunal.

ASIC Deputy Chairman Belinda Gibson said 'This is another step in ASIC's preparation for the transfer of supervision. In February, we consulted on the proposed market integrity rules and based on this market feedback, we expect to release the proposed rules shortly. We are on track for transition in August.

"ASIC and ASX are progressing the transition of market supervision to ASIC and are both working with market participants to ensure stability, clarity and certainty," Ms Gibson said.