Federal Register of Legislation - Australian Government

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Rules/Other as made
This instrument amends the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 to require market operators to apply volatility controls to all equity index futures.
Administered by: Treasury
Made 20 May 2014
Registered 23 May 2014
Tabled HR 26 May 2014
Tabled Senate 16 Jun 2014
Date of repeal 27 May 2014
Repealed by Division 1 of Part 5A of the Legislative Instruments Act 2003

Australian Securities and Investments Commission

Corporations Act 2001 — Subsection 798G(1) — Amendment

1.           Enabling legislation

I, Oliver Harvey, with the written consent of the Minister, make the following instrument under subsection 798G(1) of the Corporations Act 2001.

 

Dated this 20th day of May 2014.

 

 

 

Signed by Oliver Harvey

as a delegate of the Australian Securities and Investments Commission.

2.           Title

This instrument is ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2014 (No. 2).

3.           Commencement

This instrument commences on the later of:

(a) 26 May 2014; and

(b) the day on which this instrument 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/.

4.           Amendments

Schedule 1 amends the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011.

Schedule 1              Amendments

[1]          Rule 1.4.3, definition of "Anomalous Order"

after "CGS Depository Interest" (wherever occurring), insert

, Equity Index Future

[2]         Rule 1.4.3, definition of "Anomalous Order Threshold"

after "CGS Depository Interest", insert

, Equity Index Future

[3]          Rule 1.4.3, definition of "Auction", paragraph (b)

after ";", omit

and

[4]          Rule 1.4.3, definition of "Auction", paragraph (c)

omit ".", substitute

; and

[5]          Rule 1.4.3, definition of "Auction", after paragraph (c)

insert

(d)       in relation to Equity Index Futures, an auction in the Equity Index Future on the central Order Book of the Responsible Market Operator for Equity Index Futures.

[6]         Rule 1.4.3, after definition of "Employee"

insert

Equity Index Future means a Futures Market Contract over a market index, where that market index is comprised of more than one Equity Market Product.

[7]          Rule 1.4.3, definition of "ETR Event"

after "CGS Depository Interest" (wherever occurring), insert

, Equity Index Future

[8]          Rule 1.4.3, definition of "Extreme Trade Range", paragraph (b)

after ";", omit

and

[9]          Rule 1.4.3, definition of "Extreme Trade Range", paragraph (c)

omit ".", substitute

; and

[10]       Rule 1.4.3, definition of "Extreme Trade Range", after paragraph (c)

insert

(d)       in relation to Equity Index Futures, has the meaning given by subrule 2.2.1(4).

[11]       Rule 1.4.3, definition of "Futures Market"

after "of" (first occurring), insert

Equity Index Futures or

[12]       Rule 1.4.3, definition of "Invalid", paragraph (b)

after "CGS Depository Interest", insert

, Equity Index Future

[13]       Rule 1.4.3, definition of "Opening Transaction"

after "CGS Depository Interest" (wherever occurring), insert

, Equity Index Future

[14]       Rule 1.4.3, definition of "Responsible Market Operator", paragraph (b)

after ";", omit

and

[15]       Rule 1.4.3, definition of "Responsible Market Operator", paragraph (c)

omit ".", substitute

; and

[16]       Rule 1.4.3, definition of "Responsible Market Operator", after paragraph (c)

insert

(d)       in relation to Equity Index Futures, the Market Operator determined in accordance with Rule 1.4.5.

[17]       Rule 1.4.3, definition of "Trading Pause"

after "CGS Depository Interest" (wherever occurring), insert

, Equity Index Future

[18]       Rule 1.4.3, definition of "Trading Reset"

after "CGS Depository Interest" (wherever occurring), insert

, Equity Index Future

[19]       After Rule 1.4.4

insert

1.4.5     Responsible Market Operator for Equity Index Futures

(1) Subject to subrule (2), the Responsible Market Operator in relation to an Equity Index Future is the Futures Market Operator in relation to that Equity Index Future.

(2) Where there is more than one Futures Market in relation to that Equity Index Future, the Responsible Market Operator for the Equity Index Future is the Futures Market Operator determined in writing by ASIC and notified on its website.

(3) A notification referred to in subrule (2) takes effect on the later of the date specified in the notification or 60 business days after the notification is made.

[20]       Subrule 2.1A.1(2)

after "CGS Depository Interests", insert

, Equity Index Futures

[21]       Subparagraph 2.1.1(5)(b)(ii)

before "ASX SPI 200 Future" (wherever occurring), insert

Equity Index Future or

[22]        Subrule 2.2.1(2)

omit

250 price steps

substitute

5%

[23]        After subrule 2.2.1(3)

insert

(4) The Extreme Trade Range for an Equity Index Future means all prices which are greater than 5% away from the Reference Price for the Equity Index Future.

[24]       Subrule 2.2.2(4), paragraph (b)

after ";", omit

or

[25]       Subrule 2.2.2(4), paragraph (c)

omit ",", substitute

; or

[26]       Subrule 2.2.2(4), after paragraph (c)

insert

(ca) the central Order Book of the Responsible Market Operator for Equity Index Futures (in the case of Equity Index Futures),