Arbitrage trading is legal in Australia, provided it adheres to the regulations and laws governing financial markets and trading. The Australian Securities and Investments Commission (ASIC) oversees trading and the conduct of market participants to ensure fairness, transparency, and efficiency within financial markets.
Traders engaging in arbitrage must comply with ASIC regulations, including those relating to market manipulation, insider trading, and providing false or misleading information. While arbitrage contributes to market efficiency by correcting price discrepancies, any manipulative practices that create artificial arbitrage opportunities are illegal.