Discuss how financial markets in Australia are regulated.

Financial markets today play a significant percentage in the Australia economy. Financial market is a place where conglomerate fiscal instruments such as securities and bonds are traded. Like new(prenominal) traditional markets, pecuniary markets provide a place for people who utilise back excess notes and people who encounter the need for these bills 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 early(a) firms or individuals who can make use of them. Such pecuniary intermediaries include both banks which form the majority and other non-bank fiscal intermediaries (NBFIs). Since the 1980s, Australian financial markets break 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 hard ness of the markets 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, collectible to the dynamic natural of financial markets, prudence and care is beg in trading various financial instruments.

As a result, during the late 1990s, an overhaul of financial regulation had been done to politic 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 financ ial markets in Australia. Under this Act, th! ere are now hint major regulators in the markets, the Reserve Bank of Australia (RBA); the Australian prudent Regulation Authority (APRA) and the Australian Securities and Investment Commission (ASIC). genius of the nigh important regulators in the financial markets is the RBA. Due to the feature that it is Australias... If you deprivation to get a full essay, order it on our website: BestEssayCheap.com

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