It’s unusual for one regulator to report on another regulator.

But in the case of the ASX, ASIC must do so annually because ASX holds an ASIC financial markets licence.

ASIC’s June 2005 ASX assessment report concludes that :

"the ASX has adequate arrangements for supervising the market, including
arrangements for:

• handling
  conflicts between its commercial interests and the obligation to
  operate the market in a fair, orderly and transparent way
• monitoring the conduct of participants, and
• enforcing compliance with its rules.

The ASX has taken a number of positive steps since the release of ASIC’s last report in September 2004, including:

• the
  establishment of arrangements for supervisory and compliance personnel
  to elevate issues of concern to the Audit and Risk Committee of the ASX
  Board; and
• the establishment of an internal compliance function."