"Rod Sims and Greg Medcraft are two outstanding candidates to reinforce the high standing of our competition and corporate watchdogs," Swan tweeted shortly after briefing the press.

D'Aloisio, the head of Mallesons for over one decade before becoming the CEO of the Australian Securities Exchange (ASX) in 2004, became the chairman of ASIC in 2007. In March he announced he would step down from the role by the middle of the year.

Wayne Swan praised him for his role in working with the Federal Government and financial regulators in responding to the global financial crisis.

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His nominated replacement, Greg Medcraft is a former banker with Société Générale who joined ASIC as a Commissioner in early 2009. If Medcraft's appointment is approved, he will be appointed for a five-year period.

Similar to D'Aloisio, ACCC chairman Graeme Samuel had flagged earlier in the year that he would seek to step down from his position as the head of Australia's competition watchdog.

A former partner with DLA Phillips Fox, he has been at ASIC for almost seven years.

His nominated replacement, Rod Sims, is an economist and adviser to the Business Council of Australia and the Chairman of the Independent Pricing and Regulatory Tribunal of New South Wales.