ASIC has published proposed rules and guidance on automated trading and released its fourth report on the supervision of Australian financial markets and market participants. Consultation Paper 184 Australian market structure: Draft market integrity rules and guidance on automated trading, proposes draft rules and guidance on participant level controls for automated trading. ASIC foreshadowed this release when it published Consultation Paper 179 Australian market structure: Draft market integrity rules and guidance in June 2012. ASIC’s proposed rules and guidance include: (i) draft new market integrity rules requiring direct control over filters and automated controls to suspend orders and/or systems; (ii) draft rules that revise the process for certifying systems and reviewing changes at least yearly; and (iii) draft regulatory guidance on automated trading, covering issues consulted on in consolidated with updated guidance currently contained in ASX guidance notes. This includes guidance on testing of systems and filters/controls - the ability to manage highly automated trading, and stress testing of order flow.