Federal Register of Legislation - Australian Government

Primary content

ASIC Class Order [CO 10/288]

Authoritative Version
CO 10/288 Orders/ASIC Class Orders as made
This Class Order exempts a market maker from reporting a covered short sale transaction in the course of hedging risks arising from its market making activities or performing its function as a market maker of an ETF.
Administered by: Treasury
Made 21 Apr 2010
Registered 29 Apr 2010
Tabled HR 11 May 2010
Tabled Senate 11 May 2010

Australian Securities and Investments Commission

Corporations Act 2001 — Paragraph 1020F(1)(a) — Exemption

 

Enabling legislation

 

1.         The Australian Securities and Investments Commission makes this instrument under paragraph 1020F(1)(a) of the Corporations Act 2001 (the Act).

 

Title

 

2.         This instrument is ASIC Class Order [CO 10/288].

 

Commencement

 

3.         This instrument commences on the date it is registered under the Legislative Instruments Act 2003.

 

Note:      An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register).  The FRLI may be accessed at http://www.frli.gov.au/.

 

Exemption

 

4.         A person does not have to comply with subsection 1020AB(3) of the Act to the extent it requires the person to give the particulars specified in paragraphs 7.9.100(1)(a) to (c) of the Corporations Regulations 2001 in relation to:

 

Market makers

 

(a)        a sale by the person of a security (the shorted product) or a managed investment product (the shorted product) where:

 

(i)         the person:

 

(A)       makes a market for a financial product (the hedged product); and

 

(B)       issues, acquires or disposes of the hedged product in the course of making that market; and

 

(C)       holds an Australian financial services licence that covers making a market in the hedged product or is exempt from the requirement to hold such a licence for providing that financial service; and

 

(ii)        the sale of the shorted product by the person is a bona fide transaction to manage, avoid or limit the financial consequences of the person issuing, acquiring or disposing of the hedged product in the course of making a market in the hedged product; or

 

ETF market makers

 

(b)        a sale by the person of an ETF security where:

 

(i)         the person:

 

(A)       is an AQUA Product Market Making Agent appointed by the issuer of the ETF security to make a market in the ETF security; or

 

(B)       has entered into an agreement with ASX Limited ACN 008 624 691 in relation to making a market in the ETF security; and

 

(ii)        the sale is made by the person in the course of making a market in the ETF security.

 

Interpretation

 

5.         In this instrument:

 

AQUA Product Market Making Agent has the meaning given by rule 10A.10.1 of the ASX Market Rules as at the date of this instrument.

 

ETF security has the meaning given by rule 2.10 of the ASX Market Rules as at the date of this instrument.

 

makes a market has the meaning given by section 766D of the Act.

 

 

Dated this 21st day of April 2010

 

 

 

 

Signed by Stephen Yen PSM

as a delegate of the Australian Securities and Investments Commission