Federal Register of Legislation - Australian Government

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ASIC Class Order [CO 08/764]

Authoritative Version
CO 08/764 Orders/ASIC Class Orders as amended, taking into account amendments up to ASIC Class Order [CO 10/289]
Administered by: Treasury
Registered 08 Jun 2011
Start Date 01 Jun 2010

ASIC Class Order [CO 08/764]

Short selling – exercise of exchange traded options

This instrument has effect under s1020F(1)(a) of the Corporations Act 2001.

This compilation was prepared on 29 April 2010 taking into account amendments up to [CO 10/289]. See the table at the end of this class order.

Prepared by the Australian Securities and Investments Commission.

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 08/764].

Commencement

3.    The provisions of this instrument commence as follows:

(a)   paragraphs 1 to 4 commence on the date the instrument is registered under the Legislative Instruments Act 2003;

(b)   paragraphs 5 to 7 commence on the day after the instrument is registered.

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 1020B(2) of the Act in relation to the sale of a security or managed investment product where the transaction effecting the sale of the security or product is the result of the exercise of an option (ETO) registered with Australian Clearing House Pty Limited.

 

 

Conditions

Positional reporting

4A. Subject to paragraph 4D, a person relying on the exemption in paragraph 4 must give to ASIC in the form required by ASIC particulars of the person’s short position in relation to the security or managed investment product as at 7pm 3 reporting days before the day the particulars must be given under paragraph 4B.

4B. The person must give the particulars about the short position:

(a)   on or before 9 am on the third reporting day after the exercise of the ETO that causes the short position to occur; and

(b)   on or before 9 am on each subsequent reporting day as long as the person has a short position.

4C. Subparagraph 4B(b) applies whether or not the particulars about the short position have changed from that given on the previous day.

4D. A person:

(a)   that is required by subsection 1020AB(3) of the Act to give particulars of the person’s short position on a day in relation to a security or product that is in the same class as the security or product; or

(b)   with a short position in relation to the security or product on a day that does not exceed the value limit and the volume limit on the day;

does not have to comply with paragraph 4A in relation to that short position.

Interpretation

4E.  In this instrument:

(a)   the value limit in relation to a person for a security or managed investment product that is able to be traded on a financial market is not exceeded on a day if:

A x B

does not exceed $100,000 where:

A =   the person’s short position in relation to the security or product as at 7pm on the day.

B =    either:

(a)   the last sale price for the security or product on the financial market on the day (or, if there is no such price on that day, the last sale price on the financial market); or 

(b)   the price determined and published by the operator of the market after the close of trading for the day as the value of the security or product on the day.

 

(b)   the volume limit in relation to a person for a security or managed investment product that is able to be traded on a financial market is not exceeded on a day if:

        A        x 100

        B

does not exceed 0.01 where:

A =   the person’s short position in relation to the security or product as at 7pm on the day.

B =    the total quantity of securities or products in the same class of securities or products on the day.

(c)   reporting day has the meaning given by subregulation 7.9.99(1) of the Corporations Regulations 2001.

 short position has the meaning given by subregulation 7.9.99(2) of the Corporations Regulations 2001.

 

Notes to ASIC Class Order [CO 08/764]

Note 1

ASIC Class Order [CO 08/764] (in force under s1020F(1)(a) of the Corporations Act 2001) as shown in this compilation comprises that Class Order amended as indicated in the tables below.

Table of Instruments

Instrument number

Date of FRLI registration

Date of commencement

Application, saving or transitional provisions

[CO 08/764]

23/9/2008 (see F2008L03534)

Paras 1–4: 23/9/2008

Paras 5–7: 24/9/2008

 

[CO 08/824]

18/11/2008 (see F2008L04330)

19/11/2008

-

[CO 09/1063]

10/12/2009 (see F2009L04606)

11/12/2009

-

[CO 10/289]

29/4/2010 (see F2010L01077)

Paras 1, 2, 3 & 6: 29/4/2010

Para 4 & 5: 1/6/2010

-

Table of Amendments

ad. = added or inserted     am. = amended     rep. = repealed     rs. = repealed and substituted

Provision affected

How affected

Paras 5–9....................

rs. [CO 08/824]

 

rep. [CO 09/1063]

Paras 4A–4E ..............

ad. [CO 10/289]