Discuss how financial markets in Australia are regulated.

Financial markets today play a significant spot in the Australia economy. Financial market is a place where sundry(a) fiscal instruments such as securities and bonds are traded. Like new(prenominal) tralatitious markets, pecuniary markets provide a place for people who rule back excess notes and people who encounter the need for these gold to meet and trade. Exchange of funds is done through monetary intermediaries. Financial intermediaries are firms that receive the accumulated funds of individuals or firms, which can then be lent out to former(a) firms or individuals who can make use of them. Such pecuniary intermediaries include both banks which form the majority and other non-bank monetary intermediaries (NBFIs). Since the 1980s, Australian pecuniary markets drive undergone two major changes in recent decades. The first change is done during the mid 1980s, which is the deregulation of the financial markets. This is done in order to increase the talent of the m arkets by removing government controls and exposing the industry to greater influence from the municipal and global markets forces, thus, increase the competitiveness of the Australian financial markets. However, overdue to the dynamic natural of financial markets, prudence and care is regard in trading various financial instruments.

As a result, during the late 1990s, an overhaul of financial regulation had been done to dormant increase the efficiency of the system by responding to changes to financial markets that have occurred since deregulation. Today, the Financial Services Reform Act 2002 oversees the entire financial markets in Australia. Under this Act, there are now leadin g major regulators in the markets, the Reser! ve Bank of Australia (RBA); the Australian prudential Regulation Authority (APRA) and the Australian Securities and Investment Commission (ASIC). unmatchable of the nigh important regulators in the financial markets is the RBA. Due to the concomitant that it is Australias... If you deprivation to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay