Federal Register of Legislation - Australian Government

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Rules/Other as amended, taking into account amendments up to ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2017 (No. 1)
Administered by: Treasury
Registered 28 Nov 2017
Start Date 15 Nov 2017
To be repealed 07 May 2018
Repealed by ASIC Market Integrity Rules (Securities Markets) 2017
Table of contents.


 

 

 


ASIC Market Integrity Rules (Competition in Exchange Markets) 2011


About this compilation

Compilation No. 10

 

This is a compilation of ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 as in force on 15 November 2017.  It includes any commenced amendment affecting the legislative instrument to that date.

This compilation was prepared by the Australian Securities and Investments Commission.

The notes at the end of this compilation (the endnotes) include information about amending instruments and the amendment history of each amended provision.

 

Contents

Chapter 1: Introduction. 4

Part 1.1     Preliminary. 4

Part 1.2     Waiver 5

Part 1.3     Notice, notification and service of documents. 6

Part 1.4     Interpretation. 7

Chapter 2: Extreme price movements. 20

Part 2.1A     Application. 20

Part 2.1     Order entry controls for Anomalous Orders. 20

Part 2.2     Extreme Trade Range. 22

Part 2.3     Transparent cancellation policies. 27

Chapter 3: Best execution. 28

Part 3.1A     Application. 28

Part 3.1     Best execution obligation. 28

Part 3.2     Policies and procedures. 30

Part 3.3     Disclosure to clients of best execution obligation. 31

Part 3.4     Evidencing execution performance. 32

Chapter 4: Pre-trade transparency. 33

Part 4.1A     Application. 33

Part 4.1     Orders must be Pre-Trade Transparent 33

Part 4.2     Pre-Trade Information—Exceptions. 37

Chapter 4A: Crossing Systems. 40

Part 4A.1     Application. 40

Part 4A.2     Reporting requirements for Crossing Systems. 40

Part 4A.3     Disclosure Requirements for Crossing Systems. 41

Part 4A.4     Fair treatment, fairness and priority in dealing and opting out by users of Crossing Systems. 45

Part 4A.5     Crossing Systems—Monitoring and suspicious activity reporting  47

Part 4A.6- Crossing System Tick Sizes and system controls. 49

Chapter 5: Post-trade transparency. 51

Part 5.1A     Application. 51

Part 5.1     Transactions must be post-trade transparent 51

Part 5.2     Delayed reporting. 62

Chapter 5A: Regulatory Data. 64

Part 5A.1     Application. 64

Part 5A.2     Requirement to record and provide Regulatory Data. 64

Chapter 6: Market Operators—Other obligations. 67

Part 6.1A     Application of Chapter 67

Part 6.1     Trading Suspensions. 67

Part 6.2     Information Sharing. 68

Part 6.3     Synchronised clocks. 70

Part 6.4     Tick Sizes. 71

Part 6.5     Material changes to Operating Rule procedures. 71

Chapter 7: Participants—Other obligations. 73

Part 7.1A     Application. 73

Part 7.1     Transactions to be under the Operating Rules of a Market Operator 73

Part 7.2     Trading Suspensions. 73

Part 7.3     Multiple Markets—Single trade confirmations. 74

Part 7.4     Managing confidential Order information. 74

Part 7.5     Order incentives. 75

Endnotes. 77


Chapter 1: Introduction

Part 1.1 Preliminary

1.1.1        Enabling legislation

ASIC makes this instrument under subsection 798G(1) of the Act.

Note: There is no penalty for this Rule.

1.1.2        Title

This instrument is ASIC Market Integrity Rules (Competition in Exchange Markets) 2011.

Note: There is no penalty for this Rule.

1.1.3        Commencement

The provisions of this instrument commence as follows:

(a)        Chapter 1, Rules 2.1.1(2), 2.1.4(2), 3.3.2, 4.1.3, 5.1.5 and 6.2.1 and Part 4.3 commence on the day after the instrument is registered under the Legislative Instruments Act 2003; and

(b)       Chapters 2 to 7 (excluding Rules 2.1.1(2), 2.1.4(2), 3.3.2, 4.1.3, 5.1.5 and 6.2.1 and Part 4.3) commence on 31 October 2011.

Note 1: There is no penalty for this Rule.

Note 2: Rule 1.1.3 relates only to the provisions of the Rules as originally made. It does not deal with any later amendments to the Rules.

1.1.4      Scope of these Rules

These Rules apply to:

(a)        the activities or conduct of a Market;

(b)       the activities or conduct of persons in relation to a Market; and

(c)        the activities or conduct of persons in relation to Financial Products,

as specified in each Chapter, Part or Rule.

Note: There is no penalty for this Rule.

1.1.5      Entities that must comply with these Rules

The following entities must comply with these Rules:

(a)        Market Operators; and

(b)       Participants,

as specified in each Rule.

Note: There is no penalty for this Rule.

1.1.6      Conduct by officers, Employees or agents

In these Rules, conduct engaged in on behalf of a person:

(a)        by an officer, Employee, or other agent of the person, and whether or not within the scope of the actual or apparent authority of the officer, Employee, or other agent; or

(b)       by any other person at the direction or with the consent or agreement (whether express or implied) of an officer, Employee, or other agent of the person, and whether or not the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the officer, Employee, or other agent,

is deemed to have been engaged in by the person.

Note: There is no penalty for this Rule.

1.1.7      State of mind of a person

(1) If for the purposes of these Rules in respect of conduct engaged in by a person, it is necessary to establish the state of mind of the person, it is sufficient to show that an officer, Employee, or other agent of the person, being an officer, Employee, or other agent by whom the conduct was engaged in and whether or not the conduct was within the scope of the actual or apparent authority of that officer, Employee, or other agent, had that state of mind.

(2) In subrule (1), a reference to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose of the person and the person’s reasons for the person’s intention, opinion, belief or purpose.

Note: There is no penalty for this Rule.

Part 1.2 Waiver

1.2.1      Waiver of Rules

(1) Subject to Rule 1.2.3, ASIC may relieve any person or class of persons from the obligation to comply with a provision of these Rules, either generally or in a particular case or category, and either unconditionally or subject to such conditions as ASIC thinks fit.

(2) If any conditions on a waiver given under subrule (1) are imposed, all of the conditions must be complied with for the waiver to be effective.

(3) ASIC may withdraw, in writing, a waiver given under subrule (1) at any time.

(4) Any request by a person for a waiver under subrule (1) must be in writing.

(5) Any waiver given under subrule (1), and any conditions imposed on that waiver, must be in writing.

(6) ASIC may publish notice of a waiver given under subrule (1).

Note: There is no penalty for this Rule.

1.2.2      Compliance with conditions

Failure to comply with a condition imposed under Rule 1.2.1 is a contravention of this Rule.

Maximum penalty: $1,000,000

1.2.3      Period during which relief applies

ASIC may specify the period or specific event during which any relief from an obligation to comply with a provision of these Rules may apply.

Note: There is no penalty for this Rule.

1.2.4      Register

(1) ASIC may establish and maintain a register for recording details of relief granted under Rule 1.2.1 and may enter the following details in the register:

(a)        the date that the relief takes effect;

(b)       the person or class of persons relieved from the obligation;

(c)        the provision to which the relief applies;

(d)       brief reasons for the relief; and

(e)        any conditions that apply to the relief.

(2) ASIC may publish the register referred to in subrule (1).

Note: There is no penalty for this Rule.

Part 1.3 Notice, notification and service of documents

1.3.1      Participant to have email

A Participant must acquire and maintain an operating email system for the purposes of receiving notices under these Rules.

Note: There is no penalty for this Rule.

1.3.2      Methods of giving notice in writing

Unless otherwise specified in a Rule, ASIC may give a notice under these Rules by any of the following methods:

(a)        delivering it to the recipient personally;

(b)       leaving it at or by sending it by courier or post to the address of the recipient last notified to ASIC;

(c)        sending it by facsimile to the recipient’s facsimile number last notified to ASIC;

(d)       a circular or bulletin addressed to a class of persons and delivered or communicated by any means permitted under this Rule;

(e)        specific email by any method which identifies a person or person’s title as addressee and no notice of non-delivery has been received; or

(f)        broadcast email by any method which identifies the addressee and which, having regard to all the relevant circumstances at the time, was as reliable as appropriate for the purposes for which the information was communicated.

Note: There is no penalty for this Rule.

Part 1.4 Interpretation

1.4.1      References to time

In these Rules, unless the contrary intention appears, a reference to time is to the time in Sydney, Australia.

Note: There is no penalty for this Rule.

1.4.2      Words and expressions defined in the Corporations Act

Words and expressions defined in the Act will, unless otherwise defined or specified in these Rules or the contrary intention appears, have the same meaning in these Rules.

Note: There is no penalty for this Rule.

1.4.3      Definitions

In these Rules, unless the contrary intention appears:

Act means the Corporations Act 2001 (Cth).

AFSL means an Australian financial services licence granted under section 913B of the Act.

Anomalous Order means a:

(a)        Buy Order for which the price is above the maximum Anomalous Order Threshold for the relevant Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future; and

(b)       Sell Order for which the price is below the minimum Anomalous Order Threshold for the relevant Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future.

Anomalous Order Threshold means a threshold for an Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future determined under subrule 2.1.1(1).

AOP Client means a person who is a client of a Participant and who is permitted by a Participant to submit Trading Messages into the Participant’s system.

ASIC means the Australian Securities and Investments Commission.

ASX means ASX Limited (ACN 008 624 691).

ASX 24 means Australian Securities Exchange Limited (ACN 000 943 377).

ASX 24 Market means the Financial Market operated by ASX 24 under Australian Market Licence (Australian Securities Exchange Limited) 2002.

ASX Market means the Financial Market operated by ASX under Australian Market Licence (ASX Limited) 2002.

ASX SPI 200 Future means the Futures Market Contract over the market index known as the S&P/ASX 200, that is generally known as the “ASX SPI 200 Future” and that is admitted to quotation on the ASX 24 Market.

ASX Trade24 means the Order Book operated by ASX 24 and generally known as “ASX Trade 24”, that is the central Order Book of ASX 24 for ASX SPI 200 Futures.

ASX TradeMatch means the Order Book operated by ASX and generally known as “ASX TradeMatch”, that is the central Order Book of ASX for Equity Market Products.

Auction, in Part 2.2 of these Rules, means:

(a)        in relation to an Equity Market Product, an auction in the Equity Market Product on ASX TradeMatch;

(b)       in relation to the ASX SPI 200 Future, an auction in the ASX SPI 200 Future on ASX Trade24;

(c)        in relation to CGS Depository Interests, an auction in the CGS Depository Interest on the central Order Book of the Responsible Market Operator for CGS Depository Interests; and

(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.

Best Available Bid, in relation to a Transaction in Equity Market Products or CGS Depository Interests, means the highest Pre-Trade Transparent Bid, for Equity Market Products or CGS Depository Interests in the same class as the Equity Market Products or CGS Depository Interests the subject of the Transaction, available across all Order Books at the time the Transaction is executed.

Best Available Offer, in relation to a Transaction in Equity Market Products or CGS Depository Interests, means the lowest Pre-Trade Transparent Offer, for Equity Market Products or CGS Depository Interests in the same class as the Equity Market Products or CGS Depository Interests the subject of the Transaction, available across all Order Books at the time the Transaction is executed.

Best Mid-Point means:

                     (Best Available Bid + Best Available Offer) ÷ 2.

Bid, in relation to a Financial Product, means a price or quantity of the Financial Product to be purchased.

Block Trade has the meaning given by Rule 4.2.1.

Buy Order means an Order to buy Financial Products.

Category A Equity Market Product has the meaning given by paragraph 5.2.1(3)(a).

Category B Equity Market Product has the meaning given by paragraph 5.2.1(3)(b).

Category C Equity Market Product has the meaning given by paragraph 5.2.1(3)(c).

Category D Equity Market Product has the meaning given by paragraph 5.2.1(3)(d).

CGS Depository Interest has the meaning given by section 761A of the Act.

CGS Market means a Financial Market, on or through which offers to acquire or dispose of CGS Depository Interests are made or accepted, the operator of which is licensed under subsection 795B(1) of the Act.

CGS Market Operator means an entity that is licensed under subsection 795B(1) of the Act to operate a CGS Market, and that has entered into contractual arrangements with the Australian Office of Financial Management to offer trading services in CGS Depository Interests.

CGS Market Participant means a person that is a Participant of a CGS Market.

CHESS Depository Interest has the meaning given to the term “CDI” by Rule 2.13.1 of the Operating Rules of ASX Settlement Pty Limited (ACN 008 504 532).

Chi-X means Chi-X Australia Pty Ltd (ACN 129 584 667).

Chi-X Market means the Financial Market operated by Chi-X under Australian Market Licence (Chi-X Australia Pty Ltd) 2011.

Client Order means an instruction, provided by a client to a Participant, to enter into a Transaction or Transactions.

Confirmation has the meaning given by Rule 7.3.1.

Continuously and in Real-Time, in relation to Pre-Trade Information or Post-Trade Information, means that the information is:

(a)        made available through an electronic data feed and in a machine-readable format; and

(b)       updated immediately as:

(i)         new Orders are received and existing Orders are amended, matched, executed or cancelled; or

(ii)       Transactions are executed, reported or cancelled,

as applicable.

Crossing System means any automated service provided by a Participant which matches or executes Client Orders with Orders of:

(a)        the Participant;

(b)       other clients of the Participant; or

(c)        any other person whose Orders access the automated service,

otherwise than on an Order Book.

Crossing System Initial Report has the meaning given by Rule 4A.2.1.

Crossing System Monthly Report has the meaning given by Rule 4A.2.2.

Course of Sales Information has the meaning given by subrule 5.1.6A(2).

Disclosed, in relation to an Order on an Order Book, means the Pre-Trade Information referred to in both items 4 (volume) and 6 (price) in the Table in Rule 4.1.4 (in the case of Equity Market Products) or Rule 4.1.4A (in the case of CGS Depository Interests) is made available for the Order.

Employee, in relation to a person, includes a director, employee, officer, agent, representative, consultant or adviser of that person, or an independent contractor who acts for or by arrangement with a person.

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.

Equity Market means a Financial Market, on or through which offers to acquire or dispose of Equity Market Products are made or accepted, the operator of which is licensed under subsection 795B(1) of the Act.

Equity Market Operator means an entity that is licensed under subsection 795B(1) of the Act to operate an Equity Market.

Equity Market Participant means a Participant in an Equity Market.

Equity Market Product means:

(a)        a share in a body;

(b)       a Financial Product referred to in subparagraph 764A(1)(b)(i) or subparagraph 764A(1)(ba)(i) of the Act;

(c)        a right (whether existing or future and whether contingent or not) to acquire, by way of issue, the following under a rights issue:

(i)         a share covered by paragraph (a); or

(ii)       a Financial Product covered by paragraph (b);

(d)       a CHESS Depository Interest; or

(e)        a Transferable Custody Receipt,

admitted to quotation on the ASX Market or admitted to quotation on the Chi-X Market under the Chi-X Operating Rules, but does not include a CGS Depository Interest.

ETR Event means when:

(a)        a Buy Order for an Equity Market Product, a CGS Depository Interest, Equity Index Future or an ASX SPI 200 Future for which the Bid price is both above the Reference Price and in the Extreme Trade Range for the Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future (as applicable); or

(b)       a Sell Order for an Equity Market Product, a CGS Depository Interest, Equity Index Future or an ASX SPI 200 Future, for which the Offer price is both below the Reference Price and in the Extreme Trade Range for the Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future (as applicable),

is received by the Market Operator and is not prevented from entering the Market by the controls the Market Operator has in place to comply with Rule 2.1.3.

Note:  Under Rule 2.2.2B, an ETR Event occurs on a Market in the circumstances described in this definition whether or not the Buy Order or Sell Order is executed, in whole or in part, on the Market.

Exchange-Traded Fund Special Trade has the meaning given to the term “ETF Special Trade” by the Operating Rules of ASX or Chi-X.

Executing Participant has the meaning given by Rule 5.1.2.

Extreme Trade Range:

(a)        in relation to Equity Market Products, has the meaning given by subrule 2.2.1(1); 

(b)       in relation to ASX SPI 200 Futures, has the meaning given by subrule 2.2.1(2);

(c)        in relation to CGS Depository Interests, has the meaning given by subrule 2.2.1(3); and

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

Family Company, in the definition of “Principal” and in the definition of “Prescribed Person”, means a corporation:

(a)        controlled by the person or the Immediate Family of the person; or

(b)       in respect of which the person is beneficially entitled to more than 50% of the issued capital.

Family Trust, in the definition of “Principal” and in the definition of “Prescribed Person”, means a trust in which:

(a)        the person or the Immediate Family of the person is the sole or majority beneficiary; or

(b)       the person has the ability to remove the trustee of the trust and replace that trustee with his or her own nominee.

Financial Market has the meaning given by section 767A of the Act.

Financial Product has the meaning given by section 761A of the Act.

Foreign Quoted Shares, in relation to a Transferable Custody Receipt, means shares of a foreign company that is listed on the New York Stock Exchange, NASDAQ Global Market or NASDAQ Global Select Market, where the shares are in a class of shares that is able to be traded on at least one of those financial markets.

Funds Manager means an entity whose primary business is to invest moneys and manage assets and other investments allocated to it by clients for that purpose.

Futures Market means a Financial Market, on or through which offers to acquire or dispose of Equity Index Futures or ASX SPI 200 Futures are made or accepted, the operator of which is licensed under subsection 795B(1) of the Act.

Futures Market Contract means a contract on the terms of a Futures Series.

Futures Market Operator means an entity that is licensed under subsection 795B(1) of the Act to operate a Futures Market.

Futures Series means a set of contractual terms on which futures contracts are authorised for trading by a Market Operator.

Hidden, in relation to an Order on an Order Book, means the Pre-Trade Information referred to in both items 4 (volume) and 6 (price) in the Table in Rule 4.1.4 (in the case of Equity Market Products) or Rule 4.1.4A (in the case of CGS Depository Interests) is not made available for the Order.

Immediate Family, in relation to a person, means that person’s spouse and any non-adult children.

In Writing, in Chapters 2, 3 and 5 of these Rules, means in printed or electronic form.

Invalid, in relation to a price established by an auction, or the price of a Transaction, means:

(a)        the price has resulted from an error;

(b)       the price is materially different from the price of the last Transaction in the same Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future on the same Order Book, and the difference in price is not, in the opinion of the Market Operator, readily attributable to an announcement that has been made to the Market or some other event; or

(c)        the price has resulted from a Transaction that is otherwise required to be cancelled or amended by the Market Operator of the Market on which the Transaction is executed.

Large Portfolio Trade has the meaning given by Rule 4.2.2.

Large Principal Transaction has the meaning given by Rule 5.2.1.

Listing Rules has the meaning given by section 761A of the Act.

Market means a Financial Market, on or through which offers to acquire or dispose of Financial Products are made or accepted, the operator of which is licensed under subsection 795B(1) of the Act.

Market Operator means an entity that is licensed under subsection 795B(1) of the Act to operate a Market.

Market Operator’s Trading System means the technical infrastructure used by the Market Operator for the purposes of receiving Trading Messages, matching and executing Orders and reporting Transactions.

NMI means the National Measurement Institute division of the Commonwealth Department of Innovation, Industry, Science and Research.

Non-Public Crossing System Information has the meaning given by subrule 4A.3.2(5).

Normal Trading Hours, in relation to a Participant and a Transaction, means Trading Hours for all Markets:

(a)        on which the Financial Products the subject of the Transaction are quoted; and

(b)       to which the Participant has access, either directly or indirectly through another Participant.

Offer, in relation to a Financial Product, means a price or quantity of the Financial Product to be sold.

Off-Market Bid has the meaning given by section 9 of the Act and in respect of an issuer incorporated or established outside Australia, means any similar form of bid.

Opening Transaction, in relation to an Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future and an Order Book, means the first Transaction in the Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future on the Order Book after a Trading Reset.  

Operating Rules has the meaning given by section 761A of the Act.

Options Market Contract means a contract on the terms of an Option Series.

Option Series means a set of contractual terms on which options are authorised for trading by ASX.

Order means an instruction to purchase or sell Financial Products, or an instruction to amend or cancel a prior instruction to purchase or sell Financial Products.

Order Book means an electronic list of Buy Orders and Sell Orders, maintained by or on behalf of a Market Operator, on which those Orders are matched with other Orders in the same list.  

Out of Hours Trade has the meaning given by Rule 4.2.6.

Participant means a person that is a participant, within the meaning of section 761A of the Act, of a Market.

Partly Disclosed, in relation to an Order on an Order Book, has the meaning given by Rule 4.1.5.

Permitted Trade during the Post-Trading Hours Period has the meaning given by Rule 4.2.4.

Permitted Trade during the Pre-Trading Hours Period has the meaning given by Rule 4.2.5.

Post-Trade Information:

(a)        in relation to Transactions in Equity Market Products, has the meaning given by Rule 5.1.7; and

(b)       in relation to Transactions in CGS Depository Interests, has the meaning given by Rule 5.1.7A.

Post-Trading Hours Period means, in relation to an Equity Market Product or CGS Depository Interest:

(a)        where all Markets on which that Equity Market Product or CGS Depository Interest is quoted have the same Trading Hours, the 30-minute period following the end of Trading Hours; or

(b)       where any Market on which that Equity Market Product or CGS Depository Interest is quoted has different Trading Hours to any other Market on which that Equity Market Product or CGS Depository Interest is quoted, the period from the earliest time on a Trading Day that Trading Hours end on any Market on which that Equity Market Product or CGS Depository Interest is quoted, until 30 minutes after the latest time on a Trading Day that Trading Hours end on any Market on which that Equity Market Product or CGS Depository Interest is quoted.

Prescribed Person means, in relation to a Participant:

(a)        an Employee, a director, a partner, or officer of the Participant;

(b)       an entity that controls the Participant or a Related Body Corporate of the entity that controls the Participant;

(c)        the Immediate Family of a person referred to in paragraphs (a) or (b);

(d)       a Family Company and a Family Trust of a person referred to in paragraphs (a) to (c); and

(e)        where a Participant or a person referred to in paragraphs (a) to (d) is a body corporate, any body corporate or other entity controlled by that body corporate.

Pre-Trade Information:

(a)        in relation to Orders in Equity Market Products, has the meaning given by Rule 4.1.4; and

(b)       in relation to Orders in CGS Depository Interests, has the meaning given by Rule 4.1.4A.

Pre-Trade Transparent:

(a)        in relation to an Order, means Pre-Trade Information is made available for the Order by a Market Operator;

(b)       in relation to a Bid or Offer, means the Bid or Offer is part of an Order for which the Pre-Trade Information referred to in item 6 (price) of the Table in Rule 4.1.4 (in the case of Equity Market Products) or Rule 4.1.4A (in the case of CGS Depository Interests) is made available by a Market Operator.

Pre-Trading Hours Period means:

(a)        in the case of an Equity Market Product, the period on a Trading Day from three hours before the start of Trading Hours for ASX TradeMatch to 15 minutes before the start of Trading Hours for ASX TradeMatch; and

(b)       in the case of a CGS Depository Interest, the period on a Trading Day from three hours before the start of Trading Hours for the Market of the Responsible Market Operator for CGS Depository Interests to 15 minutes before the start of Trading Hours for that Market.

Price Step means a difference in price of one Tick Size.

Principal, in the context of a Participant acting or trading on its own behalf “as Principal”, includes a reference to a Participant acting or trading on its own behalf or on behalf of any of the following persons:

(a)        a partner of the Participant;

(b)       a director, company secretary or Substantial Holder of the Participant;

(c)        the Immediate Family, Family Company or Family Trust of a partner, director, company secretary or Substantial Holder of the Participant;

(d)       a body corporate in which the interests of one or more of the partners singly or together constitute a controlling interest;

(e)        any Related Body Corporate of the Participant,

but does not include where a Participant is acting or trading as a trustee of a trust in which the Participant has no direct or indirect beneficial interest.

Publicly Available Crossing System Information has the meaning given by subrule 4A.3.1(2).

Recognised Stock Exchange has the meaning given by the Operating Rules of ASX.

Reference Price means a price determined in accordance with Rule 2.2.2.

Regulatory Data has the meaning given by Rule 5A.2.3.

Related Body Corporate has the meaning given by section 50 of the Act.

Reporting Participant has the meaning given by Rule 5.1.2.

Responsible Market Operator means:

(a)        in relation to Equity Market Products admitted to quotation on the ASX Market, ASX;

(b)       in relation to ASX SPI 200 Futures, ASX 24;

(c)        in relation to CGS Depository Interests, the Market Operator determined in accordance with Rule 1.4.4;

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

(e)        in relation to Equity Market Products admitted to quotation on the Chi-X Market under the Chi-X Operating Rules, Chi-X.

Retail Client means a person who is a retail client within the meaning of subsection 761G(1) of the Act in relation to the handling and execution by the Participant of that person’s Order or Orders.

Retail Client’s Instructions has the meaning given by subrule 3.1.1(3).

Rules mean these market integrity rules.

Securities Lending Arrangement has the meaning given by subsection 1020AA(1) of the Act.

Sell Order means an Order to sell Financial Products.

Substantial Holder in the definition of “Principal”, when used to refer to a substantial holder in a corporation, means a person who has or would have a substantial holding if Part 6C of the Act applied to that corporation.

Tick Size means:

(a)        in relation to an Equity Market Product or CGS Depository Interest, the minimum increment by which the price for an Equity Market Product or CGS Depository Interest may increase or decrease, in accordance with Rule 6.4.1 or Rule 4A.6.1, as applicable; and

(b)       in relation to an ASX SPI 200 Future, one index point.  

Tier 1 Equity Market Product has the meaning given by paragraph 4.2.1(3)(a).

Tier 2 Equity Market Product has the meaning given by paragraph 4.2.1(3)(b).

Tier 3 Equity Market Product has the meaning given by paragraph 4.2.1(3)(c).

Time Priority, in relation to an Order Book, means that Orders to buy or sell Equity Market Products or CGS Depository Interests in the same class for the same price are queued in the Order Book for matching and execution, with priority in the queue being given to the Order that was entered into the Order Book at the earlier time.

Total Consideration means:

(a)        for a Buy Order, the purchase price paid by a client in respect of performance of a Client Order, plus Transaction Costs; or

(b)       for a Sell Order, the sale price received by a client in respect of performance of a Client Order less Transaction Costs.

Trade Report, in Chapter 5A, means:

(a)        in relation to an Equity Market Product or CGS Depository Interest, a report of Post-Trade Information required to be made to a Market Operator under Rule 5.1.1; and

(b)       in relation to a Financial Product other than an Equity Market Product, a CGS Depository Interest, a Futures Market Contract or an Options Market Contract, a report of information in relation to a Transaction entered into otherwise than by matching of Orders on an Order Book, required to be made to a Market Operator under the Operating Rules of a Market.

Trade with Price Improvement has the meaning given by subrule 4.2.3(1).

Trading Day, in relation to a Market, means a day on which Financial Products may be traded on that Market.

Trading Hours, in relation to a Market, means the times on a Trading Day during which:

(a)        Orders may be entered, amended or cancelled on the Order Books of the Market; and

(b)       Orders are matched and Transactions are executed on a continuous basis on the Market,

and includes a time during which an auction is conducted on the Market.

Trading Information means:

(a)        in relation to Equity Market Products, has the meaning given by subrule 5.1.6(2); and

(b)       in relation to CGS Depository Interests, has the meaning given by subrule 5.1.6(3).

Trading Messages means those messages submitted to or from a Market relating to trading functions, such as Orders, amendment or cancellation of Orders and the reporting or cancellation of Transactions on the Market.

Trading Pause, in relation to an Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future, means a period during which the Market Operator must prevent Orders for the Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future from being matched or executed on its Market, but during which Bids and Offers for the Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future may be displayed, entered, amended and cancelled.

Trading Reset, in relation to an Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future, means each of a Trading Pause, Trading Suspension, and the end of Trading Hours for the Equity Market Product, CGS Depository Interest, Equity Index Future or ASX SPI 200 Future.

Trading Suspension means a halt or suspension in trading on a Market pursuant to the exercise of a power by a Market Operator under its Operating Rules during which Orders may not be matched or executed on the relevant Market, but does not include a halt or suspension caused by a technical problem (including a power outage) affecting a Market Operator’s Trading System.

Transaction means a transaction in a Financial Product.

Transaction Costs means all costs paid by a client that are directly related to a particular Transaction including, without limitation, any trade execution costs imposed by a Market, Crossing System or Participant, clearing and settlement costs and commissions paid to the Participant by a client.

Transferable Custody Receipts means units of beneficial ownership in Foreign Quoted Shares where the units:

(a)        arise from a custodial and sub-custodial arrangement under which:

(i)         a custodian holds, directly or indirectly, the Foreign Quoted Shares on behalf of, or in trust for, an AFSL holder that holds an AFSL that covers the provision of a custodial or depository service; and

(ii)        the AFSL holder holds their equitable rights or interests in the Foreign Quotes Shares arising from the custodial arrangement mentioned in subparagraph (i) on behalf of, or in trust for, a person; and

(b)       are issued without the involvement of the issuer of the Foreign Quoted Shares; and

(c)        are able to be traded on the Chi-X Market.

Under the Rules of, in relation to a Market, means executed on an Order Book or reported to a Market Operator in accordance with these Rules and the Operating Rules (including written procedures made under the Operating Rules) of the relevant Market.

UTC(AUS) means the output of the caesium atomic clock designated by the NMI as UTC(AUS).

Wholesale Client means a person who is a wholesale client within the meaning of subsection 761G(4) of the Act in relation to the handling and execution by the Participant of that person’s Order or Orders.

Wholesale Client’s Instructions has the meaning given by subrule 3.1.1(4).

Note: There is no penalty for this Rule.

1.4.4      Responsible Market Operator for CGS Depository Interests

(1) Subject to subrule (2), the Responsible Market Operator in relation to CGS Depository Interests is the CGS Market Operator.

(2) Where there is more than one CGS Market, the Responsible Market Operator for CGS Depository Interests is the CGS 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.

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.


Chapter 2: Extreme price movements

Part 2.1A      Application

2.1A.1   Application of Chapter

(1) This Chapter applies to:

(a)        Equity Market Operators and CGS Market Operators; and

(b)       from the day that is 18 months after the day on which this Rule commences, Futures Market Operators.

(2) In this Chapter, Relevant Products means Equity Market Products, CGS Depository Interests, Equity Index Futures and ASX SPI 200 Futures.

Note: There is no penalty for this Rule.

Part 2.1 Order entry controls for Anomalous Orders

2.1.1      Requirement to have Anomalous Order Thresholds

(1) A Market Operator must determine an Anomalous Order Threshold for each Relevant Product that is quoted on its Market.

(2) A Market Operator must notify ASIC In Writing of the Anomalous Order Threshold for each Relevant Product that is quoted on its Market, not less than 21 days before first adopting the Anomalous Order Threshold for the purposes of Rule 2.1.3.

(3) ASIC may notify a Market Operator that an Anomalous Order Threshold the Market Operator has notified to ASIC or adopted for the purposes of Rule 2.1.3 is not appropriate to promote market integrity or a fair, orderly or transparent market.  

(4) If ASIC notifies a Market Operator under subrule (3) in relation to a Relevant Product, the Market Operator must, as soon as practicable, determine a new Anomalous Order Threshold for the Relevant Product and notify ASIC In Writing of the new Anomalous Order Threshold before adopting the Anomalous Order Threshold for the purposes of Rule 2.1.3.

(5) In determining an Anomalous Order Threshold for a Relevant Product a Market Operator must take into account, at a minimum:

(a)        the price at which a single Order deviates substantially from:

(i)         prevailing market conditions for the Relevant Product;

(ii)       historical trading patterns; and

(b)       if the Relevant Product is:

(i)         an Equity Market Product or CGS Depository Interest, the Tick Size for the Equity Market Product or CGS Depository Interest; or

(ii)       an Equity Index Future or ASX SPI 200 Future, the relevant index multiplier for the Equity Index Future or ASX SPI 200 Future.

Maximum penalty: $1,000,000

2.1.2      Requirement to make Anomalous Order Thresholds publicly available

A Market Operator must make an Anomalous Order Threshold determined under Rule 2.1.1 publicly available before adopting the Anomalous Order Threshold for the purposes of Rule 2.1.3.

Maximum penalty: $100,000

2.1.3      Requirement to prevent Anomalous Orders from entering Markets

A Market Operator must have in place adequate controls to prevent Anomalous Orders from entering an Order Book (Relevant Order Book) of its Market at all times on a Trading Day other than a time during which:

(a)        Orders are not matched and Transactions are not executed on a continuous basis on the Relevant Order Book; or

(b)       an auction is being conducted on the Relevant Order Book.

Maximum penalty: $1,000,000

2.1.4      Requirement to have adequate arrangements in relation to Anomalous Order Thresholds

(1) A Market Operator must have in place adequate arrangements for:

(a)        determining Anomalous Order Thresholds in accordance with Rule 2.1.1;

(b)       regularly reviewing, and if necessary, amending, the Anomalous Order Threshold for each Relevant Product quoted on its Market, to take into account changes to the matters set out in subrule 2.1.1(5); and

(c)        monitoring, and if necessary, adjusting, the controls referred to in Rule 2.1.3 to ensure that the controls are adequate to prevent Anomalous Orders from entering its Market.

(2) A Market Operator must notify ASIC In Writing:

(a)        of the arrangements that the Market Operator has in place under paragraph (1)(a), not less than 21 days before first adopting an Anomalous Order Threshold for the purposes of Rule 2.1.3 in accordance with those arrangements; and

(b)       each time the Market Operator revises the arrangements it has in place under paragraph (1)(a), not less than two business days before adopting the revised arrangements for the purposes of paragraph (1)(a).

(3) ASIC may notify a Market Operator that its arrangements for determining Anomalous Order Thresholds under paragraph (1)(a) are not appropriate to promote market integrity or a fair, orderly or transparent market.  

(4) If ASIC notifies a Market Operator under subrule (3), the Market Operator must, as soon as practicable, revise its arrangements and notify ASIC In Writing of the revised arrangements not less than two business days before adopting them for the purposes of paragraph (1)(a).

(5) A Market Operator must record In Writing the arrangements required by subrule (1).

Maximum penalty: $1,000,000

Part 2.2 Extreme Trade Range

2.2.1      Extreme Trade Range

(1) The Extreme Trade Range for an Equity Market Product means all prices which are greater than:

(a)        the number of cents set out in the following Table; or

(b)       the percentage amount set out in the following Table,

as the case may be, away from the Reference Price for the Equity Market Product.

 

Where Reference Price for Equity Market Product is in the following price range:

Extreme Trade Range (cents or percentage away from Reference Price)

0.1–9.9 cents

>10 cents

10–99.5 cents

>30 cents

100–199.5 cents

>50 cents

200–499 cents

>50.0%

500–699 cents

>40.0%

700–999 cents

>35.0%

1000–1999 cents

>30.0%

2000–4999 cents

>25.0%

5000 cents

>20.0%

(2) The Extreme Trade Range for the ASX SPI 200 Future means all prices which are greater than 5% away from the Reference Price for the ASX SPI 200 Future.

(3) The Extreme Trade Range for a CGS Depository Interest means all prices which are greater than 20% away from the Reference Price for the CGS Depository Interest on the CGS Market.

(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.

Note: There is no penalty for this Rule.

2.2.2      Obligation on Market Operator to determine and notify Reference Price

(1) The Responsible Market Operator must determine a Reference Price for each Relevant Product after each Trading Reset, as follows:

(a)        if there is an Auction in the Relevant Product after the Trading Reset and before the Opening Transaction, the price established by the Auction;

(b)       if:

(i)         the Responsible Market Operator determines, acting reasonably, that the price established by the Auction referred to in paragraph (a) is Invalid;

(ii)       the Auction referred to in paragraph (a) does not establish a price; or

(iii)      there is no Auction in the Relevant Product after the Trading Reset and before the Opening Transaction,

the price of the Opening Transaction; or

(c)        if paragraph (b) applies and the price of the Opening Transaction is Invalid, a price determined by the Responsible Market Operator, acting reasonably, to be not Invalid.

(2) The Responsible Market Operator must, each time it determines a Reference Price for a Relevant Product in accordance with subrule (1), immediately:

(a)        use the Reference Price to determine the Extreme Trade Range for the Relevant Product in accordance with Rule 2.2.1, until the next Trading Reset for the Relevant Product; and

(b)       notify ASIC and, subject to subrules 6.2.1(1) and (6), the Market Operator of each other Market on which the Relevant Product is quoted, of the Reference Price for the Relevant Product.

(3) Subject to subrule (4), each Market Operator that receives a notification under paragraph (2)(b) must immediately use the Reference Price in the notification to determine the Extreme Trade Range for the Relevant Product in accordance with Rule 2.2.1, until it next receives a notification under paragraph (2)(b) in relation to the Relevant Product.

(4) A Market Operator that operates an Order Book for Relevant Products other than:

(a)        ASX TradeMatch (in the case of Equity Market Products admitted to quotation on the ASX Market);

(b)       ASX Trade 24 (in the case of ASX SPI 200 Futures);

(c)        the central Order Book of the Responsible Market Operator for CGS Depository Interests (in the case of CGS Depository Interests);

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

(cb)   the central order book of Chi-X (in the case of Equity Market Products admitted to quotation under the Chi-X Operating Rules),

must determine the Reference Price for each Relevant Product for that Order Book after each Trading Reset on that Order Book, as:

(d)       the price of the Opening Transaction; or

(e)        if paragraph (d) applies and the price of the Opening Transaction is Invalid, a price determined by the Market Operator, acting reasonably, to be not Invalid,

until the Market Operator receives a notification of the Reference Price for the Relevant Product under paragraph (2)(b).

Note: Under subrules 6.2.1(1) and (6), the relevant Responsible Market Operator for Equity Market Products must provide notifications under paragraph 2.2.2(2)(b) to other Market Operators through an electronic data feed, and need only make a notification in relation to a particular Equity Market Product to a Market Operator that has notified it will quote the Equity Market Product on its Market.

Maximum penalty: $100,000

2.2.2A   Requirement to prevent extreme price movements

A Market Operator must have in place adequate controls to prevent a Transaction in a Relevant Product executing on an Order Book (Relevant Order Book) of its Market in the Extreme Trade Range for the Relevant Product, at all times during a Trading Day other than at a time during which:

(a)        Orders are not matched and Transactions are not executed on a continuous basis on the Relevant Order Book; or

(b)       an auction is being conducted on the Relevant Order Book.

Maximum penalty: $1,000,000

2.2.2B   Requirement to identify and notify of ETR Event

(1) A Market Operator must identify when an ETR Event occurs on an Order Book (Relevant Order Book) of its Market, at all times on a Trading Day other than at a time during which:

(a)        Orders are not matched and Transactions are not executed on a continuous basis on the Relevant Order Book; or

(b)       an auction is being conducted on the Relevant Order Book.

(2) Where a Market Operator (other than the Responsible Market Operator) identifies that an ETR Event has occurred on an Order Book of its Market, the Market Operator must immediately notify the Responsible Market Operator of the ETR Event, subject to subrule 6.2.1(1).

(3) Where a technical problem (including a power outage) prevents a Market Operator from making a notification referred to in subrule (2) immediately, the notification must be made to the Responsible Market Operator without delay by another appropriate means.

Note: Under subrule 6.2.1(1), a Market Operator must provide notifications under subrule 2.2.2B(2) to ASX (as the Responsible Market Operator for Equity Market Products) through an electronic data feed.

Maximum penalty: $1,000,000

2.2.2C   Requirement to impose Trading Pause

(1) Where the Responsible Market Operator:

(a)        identifies an ETR Event on an Order Book of its own Market; or

(b)       receives a notification of an ETR Event from another Market Operator,

in relation to a Relevant Product, the Responsible Market Operator must immediately:

(c)        impose a Trading Pause on the Relevant Product for a period of two minutes; and

(d)       notify ASIC and, subject to subrules 6.2.1(1) and (6), the Market Operator of each other Market on which the Relevant Product is quoted, that the Trading Pause has been imposed.

(2) A Market Operator that receives a notification under paragraph (1)(d) must immediately place each Relevant Product the subject of the notification into a Trading Pause on its Market.

(3) A Market Operator that places a Relevant Product into a Trading Pause in accordance with subrule (2) may only lift or remove that Trading Pause after the Market Operator receives a notification under subrule (4) in relation to the same Relevant Product.

(4) The Responsible Market Operator must immediately notify ASIC and, subject to subrules 6.2.1(1) and (6), the Market Operator of each other Market on which the Relevant Product is quoted when it lifts or removes the Trading Pause imposed on the Relevant Product under subrule (1).

(5) Where a technical problem (including a power outage) prevents the Responsible Market Operator from making a notification referred to in paragraph (1)(d) or subrule (4) immediately, the notification must be made to ASIC and the Market Operator of each other Market on which the Relevant Product is quoted, without delay by another appropriate means.

(6) The Responsible Market Operator must make publicly available information concerning:

(a)        the fact that a Trading Pause will result from an ETR Event;

(b)       the length of a Trading Pause resulting from an ETR Event; and

(c)        how the Responsible Market Operator will resume trading in the Relevant Product on its Market after a Trading Pause resulting from an ETR Event.

Note: Under subrules 6.2.1(1) and (6), the relevant Responsible Market Operator for Equity Market Products must provide notifications to other Market Operators under paragraph 2.2.2C(1)(d) and subrule 2.2.2C(4) through an electronic data feed, and need only make a notification in relation to a particular Equity Market Product to a Market Operator that has notified it will quote the Equity Market Product on its Market.

Maximum penalty: $1,000,000

2.2.3      Notification of Transactions in Extreme Trade Range

If a Transaction is executed on a Market within the Extreme Trade Range for a Relevant Product, the relevant Market Operator must, as soon as practicable after becoming aware that the Transaction was executed:

(a)        notify ASIC and the Market Operators of all other Markets on which that Relevant Product is quoted, of the price and time at which the relevant Transaction was executed;

(b)       notify the Participants that executed the relevant Transaction, that the Transaction was executed in the Extreme Trade Range; and

(c)        make publicly available the price and time of the relevant Transaction, or, where more than one Transaction in the same Relevant Product was executed in the Extreme Trade Range on the Market of the relevant Market Operator at or around the same time, the range of prices and times at which such Transactions were executed, and the total number of such Transactions.

Maximum penalty: $100,000

2.2.4      Market Operator arrangements in relation to Extreme Trade Range

(1) The Responsible Market Operator must have in place adequate arrangements for notifying ASIC and other Market Operators of Reference Prices in accordance with subrule 2.2.2(2), and the imposition and lifting or removal of a Trading Pause under paragraph 2.2.2C(1)(d) and subrule 2.2.2C(4).

(2) A Market Operator must have in place adequate arrangements for:

(a)        identifying when an ETR Event occurs on its Market, in accordance with subrule 2.2.2B(1);

(ab)   notifying the Responsible Market Operator that an ETR Event has occurred on its Market, in accordance with subrule 2.2.2B(2), unless the Market Operator is the Responsible Market Operator;

(b)       notifying ASIC, other Market Operators and the relevant Participants once the Market Operator has become aware that a Transaction was executed on its Market in the Extreme Trade Range, in accordance with paragraphs 2.2.3(a) and (b); and

(c)        making publicly available the price and time of a Transaction executed in the Extreme Trade Range, and, where applicable, the range of prices and times, and total number, of Transactions executed in the Extreme Trade Range at or around the same time, in accordance with paragraph 2.2.3(c).

Maximum penalty: $1,000,000

Part 2.3 Transparent cancellation policies

2.3.1      Market Operator to have transparent cancellation policies

(1) A Market Operator must have adequate policies and procedures for the cancellation of Transactions in Relevant Products entered into on its Market.

(2) A Market Operator’s policies and procedures under subrule (1) must:

(a)        include a policy that all Transactions executed on its Market within the Extreme Trade Range and identified by or to the Market Operator will be cancelled;

Note:  Under subrule 2.2.2B(1) and paragraph 2.2.4(2)(a), a Market Operator must identify when an ETR Event, including the execution of a transaction in the Extreme Trade Range, occurs on its Market and must have in place adequate arrangements for identifying when an ETR Event occurs on its Market.

(b)       set out the circumstances, if any, in which Transactions in Relevant Products other than Transactions referred to in paragraph (a):

(i)         will be cancelled;

(ii)       may be cancelled subject to a discretion; or

(iii)      will not be cancelled;

(c)        provide for the timely cancellation of Transactions in Relevant Products; and

(d)       describe how the Market Operator will communicate with Participants about the cancellation of Transactions in Relevant Products.

(3) A Market Operator must comply with its policies and procedures required under subrule (1).

(4) A Market Operator must ensure that the policies and procedures it has in place to comply with subrule (1), and any changes to those policies and procedures, are made available to its Participants before those policies and procedures, or those changes, take effect.

Maximum penalty: $1,000,000

 

 


Chapter 3: Best execution

Part 3.1A      Application

3.1A.1   Application of Chapter

This Chapter applies to:

(a)        Equity Market Participants and CGS Market Participants; and

(b)       Orders (including Client Orders) in relation to Equity Market Products and CGS Depository Interests.

Note: There is no penalty for this Rule.

Part 3.1 Best execution obligation

3.1.1      Best execution obligation—Best outcome

(1) Subject to subrules (3), (4) and (6), when handling and executing an Order for a client a Participant must take reasonable steps to obtain the best outcome for that client.

(2) For the purposes of subrule (1), when handling and executing an Order for:

(a)        a Retail Client who has not given an instruction under subrule (3), the best outcome means the best Total Consideration; and

(b)       a Wholesale Client who has not given an instruction under subrule (4), the best outcome may be price, costs, Total Consideration, speed, likelihood of execution or any other relevant outcome, or any combination of those outcomes. 

(3) If a Retail Client provides a Participant with instructions (Retail Client’s Instructions) in relation to handling and executing that Retail Client’s Order that are inconsistent with the Participant obtaining the best Total Consideration under subrule (1) for the Retail Client and that are:

(a)        clear and unambiguous;

(b)       In Writing, or if provided to the Participant verbally, recorded by the Participant and retained by the Participant for a period of seven years; and

(c)        specific to an Order, and not contained within the terms and conditions of a client agreement or any other standard form agreement provided by the Participant to the client,

the Participant must take reasonable steps to handle and execute the Order in a way which satisfies the Retail Client’s Instructions.

(4) If a Wholesale Client provides a Participant with instructions (Wholesale Client’s Instructions) that are inconsistent with the Participant obtaining the best outcome under subrule (1) for the Wholesale Client and that are:

(a)        clear and unambiguous;

(b)       In Writing, or if provided to the Participant verbally, recorded by the Participant and retained by the Participant for a period of seven years; and

(c)        not contained within the standard terms and conditions of a client agreement provided by the Participant to the client, but which may be standing instructions or specific Order by Order instructions,

the Participant must take reasonable steps to handle and execute the Order or Orders in a way which satisfies the Wholesale Client’s Instructions.

(5) If a standing instruction is given to a Participant under paragraph (4)(c), that instruction must be:

(a)        periodically reviewed to ensure it remains possible for the Participant to satisfactorily perform the instruction; and

(b)       if the instruction provides that the Participant is not required to comply with subrule (1), only acted on by the Participant for a period of 12 months.

Maximum penalty: $1,000,000

3.1.2      No inducement

(1) Subject to subrule (3), a Participant must not take steps to encourage or induce a client to provide the instructions referred to in subrules 3.1.1(3) or (4).

(2) A Participant must not take steps to encourage or induce a client to agree that the Participant is not required to disclose the matters referred to in subrules 3.3.1(1) and (2).

(3) A Participant who takes steps to inform a Wholesale Client that its standing instructions provided under paragraph 3.1.1(4)(c) are due to expire, does not contravene this Rule.

Maximum penalty: $1,000,000

3.1.3      Prohibition on discriminatory commission structure

A Participant must not charge a client, or propose to charge a client, brokerage, commission or other fees for executing an Order on a Market that differs from the brokerage, commission or other fees the Participant would charge if the Order was executed on another Market, unless the difference is related to the actual cost of executing Orders on a Market.

Maximum penalty: $1,000,000

Part 3.2 Policies and procedures

3.2.1      Participant must have adequate policies and procedures in place

(1) A Participant must establish, document and implement adequate policies and procedures to ensure that it complies with Rule 3.1.1. 

(2) A Participant’s policies and procedures under subrule (1) must, without limitation, set out a description of:

(a)        the Order Books, and (in reliance on an exception to subrule 4.1.1(1)) any place other than an Order Book, to which the Participant may transmit Client Orders;

(b)       how Client Orders will be handled and executed, including the circumstances in which Client Orders will be transmitted for matching or execution to an Order Book or elsewhere (in reliance on an exception to subrule 4.1.1(1)) and the circumstances in which that transmission will be automatic and the circumstances in which that transmission will be manual; and

(c)        arrangements to monitor the policies, procedures and implementation required by subrule (1) to ensure they continue to be adequate to ensure compliance with subrule 3.1.1(1).

Maximum penalty: $1,000,000

3.2.2      Participant must comply with its policies and procedures

A Participant must comply with the policies and procedures required under Rule 3.2.1.

Maximum penalty: $1,000,000

3.2.3      Best execution arrangements—Review

(1) A Participant must review the policies and procedures and implementation of them required by Rule 3.2.1 each time:

(a)        there is a material change in circumstances that affects where the Participant may transmit Client Orders; and

(b)       the results of monitoring undertaken under paragraph 3.2.1(2)(c) suggest the policies and procedures under subrule 3.2.1(1) are not adequate to ensure compliance with Rule 3.1.1,

for the purposes of ensuring the policies and procedures and implementation of them continue to be adequate to ensure compliance with subrule 3.1.1(1).

(2)  A Participant who relies on subrule 3.1.1(6) to transmit Orders in Equity Market Products to ASX TradeMatch only for the period until 1 March 2013 must, prior to 1 March 2013:

(a)        review the policies and procedures and implementation of them required by Rule 3.2.1 for the purposes of ensuring they will continue to be adequate to ensure compliance with subrule 3.1.1(1) in the period after 1 March 2013; and

(b)       disclose In Writing to its clients any changes to its policies and procedures arising from the review it undertakes under paragraph (a).

Maximum penalty: $1,000,000

Part 3.3 Disclosure to clients of best execution obligation

3.3.1      Disclosure of best execution obligation

(1) Before accepting a Client Order from a client for the first time, a Participant must disclose to the client:

(a)        that the Participant is required to handle and execute Client Orders in accordance with Part 3.1;

(b)       how, in general terms, the requirements of Part 3.1 may affect the handling and execution of the Client Orders;

(c)        the Order Books, and (in reliance on an exception to subrule 4.1.1(1)) any place other than an Order Book, to which the Participant may transmit Client Orders;

(d)       the circumstances in which Client Orders may be transmitted to each Order Book and (in reliance on an exception to subrule 4.1.1(1)) to places other than Order Books; and

(e)        that where a client provides a Participant with instructions that are inconsistent with the Participant obtaining the best outcome for the client, the Participant must take reasonable steps to handle and execute the Order or Orders in a way which satisfies those instructions and, as a result, may not achieve the best outcome for the client.

(2) Each time there is a material change that affects any of the matters referred to at paragraph (1)(c) or (d), a Participant must disclose a summary of those changes to clients as soon as practicable after the change occurs.

(3) A Participant must disclose the matters referred to in paragraphs (1)(a) to (e) upon receipt of a request from a client, within a reasonable time of receiving the request.

(4) The disclosure required by subrules (1) and (2) must be In Writing, and be retained by a Participant for a period of seven years.

(5) The disclosure required by subrule (1) must include the level of detail of information about a Participant’s handling and execution arrangements that a client would reasonably require to enable the client to make an informed decision about whether to instruct the Participant to handle and execute Orders on its behalf.

(6) A Participant is not required to disclose the matters referred to in subrule (1) and (2) to a Wholesale Client if the Wholesale Client and the Participant agree that disclosure is not required, and the terms of that agreement are:

(a)        clear and unambiguous;

(b)       In Writing and retained by the Participant for a period of seven years; and

(c)        not part of a standard client agreement or any other standard form agreement provided by the Participant to all its Wholesale Clients or to a class of its Wholesale Clients.

Maximum penalty: $100,000

3.3.2      Disclosure of best execution obligation—Existing clients

(1) A Participant must disclose the matters referred to in paragraphs 3.3.1(1)(a) to (e) to all its existing clients by 31 October 2011.

(2) The disclosure required by subrule (1) must be In Writing, and be retained by a Participant for a period of seven years.

Maximum penalty: $100,000

Part 3.4 Evidencing execution performance

3.4.1      Demonstrating execution performance and Order transmission by Participants—On request by a client

(1) Subject to Rule 3.4.2, a Participant must, if it receives a reasonable request from a client to do so, demonstrate to the client that the Client’s Orders have been executed in accordance with the Participant’s policies and procedures required under Part 3.2.

(2) A Participant must comply with subrule (1) within a reasonable time after receiving the request.

Maximum penalty: $100,000

3.4.2      Demonstrating execution performance and Order transmission by Participants—Evidencing adequacy of arrangements

A Participant must keep, for a period of seven years, records which enable the Participant to demonstrate compliance with the policies and procedures required under Part 3.2 and client instructions.

Maximum penalty: $100,000


Chapter 4: Pre-trade transparency

Part 4.1A      Application

4.1A.1   Application of Chapter

(1) This Chapter applies to:

(a)        Equity Market Operators and CGS Market Operators;

(b)       Equity Market Participants and CGS Market Participants; and

(c)        Orders and Transactions in Equity Market Products and CGS Depository Interests.

(2) In this Chapter, Relevant Products means Equity Market Products and CGS Depository Interests.

 Note: There is no penalty for this Rule.

Part 4.1 Orders must be Pre-Trade Transparent

4.1.1      Participants to enter into Transactions on Pre-Trade Transparent Order Book, subject to exceptions

(1) Subject to subrule (2), a Participant must not enter into a Transaction unless the Transaction is entered into by matching of a Pre-Trade Transparent Order on an Order Book.

(2) A Participant is not required to comply with subrule (1) in relation to:

(a)        Block Trades;

(b)       Large Portfolio Trades;

(c)        a Trade with Price Improvement;

(d)       a Permitted Trade during the Post-Trading Hours Period;

(e)        a Permitted Trade during the Pre-Trading Hours Period; and

(f)        Out of Hours Trades.

(3) A Participant that enters into a Transaction in reliance on an exception in subrule (2) must keep, for a period of seven years from the date of the Transaction, records that enable the Participant to demonstrate that the relevant Transaction met the criteria for the relevant exception, including, in relation to a Transaction executed in reliance on the exception in paragraph (2)(c), a record of the Best Available Bid and Best Available Offer, if applicable, at the time the Transaction was executed.

Note: For the purposes of subrule (3), the exception in paragraph 4.1.1(2)(c) for a Trade At or Within the Spread is replaced with an exception for a Trade with Price Improvement from the day that is 6 months after the day on which subrule (3) commences.

Maximum penalty: $1,000,000

4.1.2      Market Operator to immediately make available Pre-Trade Information subject to exceptions

(1) Subject to subrules (2) and (3), a Market Operator must make available Pre-Trade Information for its Market:

(a)        for all Orders received during Trading Hours for the Market, Continuously and in Real-Time; and

(b)       for all Orders received outside of Trading Hours for the Market, by no later than the time Trading Hours next resume,

to all persons in this jurisdiction who have entered into an arrangement with the Market Operator to access the Pre-Trade Information on that basis.

(2) A Market Operator is not required to make available Pre-Trade Information in relation to:

(a)        an Order on an Order Book that, if executed, would result in a Block Trade;

(b)       an Order or series of Orders on an Order Book that, if executed, would result in a Large Portfolio Trade; and

(c)        an Order on an Order Book that, if executed, would result in a Trade with Price Improvement.

(3) The Market Operator must take reasonable steps to ensure that all Pre-Trade Information it makes available under subrule (1) is and remains complete, accurate and up-to-date.

Maximum penalty: $1,000,000

4.1.3      Market Operator to make available Pre-Trade Information on reasonable commercial terms and on a non-discriminatory basis

Subject to Rule 6.2.1, where a person in this jurisdiction seeks access to Pre-Trade Information for a Market, the Market Operator must make available the Pre-Trade Information:

(a)        on reasonable commercial terms; and

(b)       on a non-discriminatory basis.

Maximum penalty: $1,000,000

4.1.4      Pre-Trade Information—Equity Market Products

For the purposes of these Rules, Pre-Trade Information, in relation to an Order for an Equity Market Product, means the information set out in the following Table in relation to that Order.

Item

Label

Pre-Trade Information

1

Order date

The date on which the Order was received by the Market Operator

2

Order time

The time at which the Order was received by the Market Operator

3

Product identification

The symbol, assigned in accordance with Rule 6.2.3, that identifies the Equity Market Product the subject of the Order

4

Volume

The number of Equity Market Products the subject of the Order, unless the Order is a Partly Disclosed Order and the information in item 6 of this Table has been made available for all or part of the Order

5

Order side

Whether the Order is a Buy Order or Sell Order

6

Price

The price per Equity Market Product of the Order, unless the Order is a Partly Disclosed Order and the information in item 4 of this Table has been made available for all or part of the Order

7

Currency

The currency of the price per Equity Market Product of the Order, unless the Order is in Australian dollars

Note: There is no penalty for this Rule.

4.1.4A   Pre-Trade Information—CGS Depository Interests

For the purposes of these Rules, Pre-Trade Information, in relation to an Order for a CGS Depository Interest, means the information set out in the following Table in relation to that Order.

 

Item

Label

Pre-Trade Information

1

Order date

The date on which the Order was received by the Market Operator

2

Order time

The time at which the Order was received by the Market Operator

3

Product identification

The symbol, assigned in accordance with Rule 6.2.3, that identifies the CGS Depository Interest the subject of the Order

4

Volume

The number of CGS Depository Interests the subject of the Order

5

Order side

Whether the Order is a Buy Order or Sell Order

6

Price

The price per CGS Depository Interest of the Order. The price entered should be price per $100 nominal, inclusive of interest.

Note: There is no penalty for this Rule.

4.1.5      Partly Disclosed Orders

(1) In these Rules, Partly Disclosed Order means an Order on an Order Book in relation to which:

(a)        the Operating Rules of the Market require the Pre-Trade Information referred to in the Table in Rule 4.1.4 (in the case of Equity Market Products) or Rule 4.1.4A (in the case of CGS Depository Interests) to be made available, with the exception of:

(i)         item 4 (volume) but not item 6 (price); or

(ii)       item 6 (price) but not item 4 (volume); and

(b)       the consideration for the Order is greater than $0.

(2) For the purposes of subrule (1), a Partly Disclosed Order includes an Order on an Order Book which the Operating Rules of a Market:

(a)        require to be of a minimum volume or value; and

(b)       permit to be divided into separate parts so that part of the Order is Disclosed and part of the Order is Hidden, until such time as the part of the Order that is Disclosed is executed, following which the Hidden parts of the Order (or the residual amount of the Order if less than the minimum volume or value) are in turn Disclosed until the total Order has been executed.

Note: There is no penalty for this Rule.

4.1.6      Application to partly filled Orders

Where an exception referred to in subrule 4.1.1(2) or 4.1.2(2) applies to an Order and that Order is executed in part, the exception ceases to apply unless the remainder of the Order would have been entitled to the exception if it were a separate Order.

Note: There is no penalty for this Rule.

4.1.7      Priority for Disclosed Orders and Partly Disclosed Orders

A Market Operator must not permit a Hidden Order in a Relevant Product on an Order Book of the Market to have Time Priority over a Disclosed Order or Partly Disclosed Order on the same Order Book, where the Disclosed Order or Partly Disclosed Order is an Order to buy or sell the same class of Relevant Products, at the same price, as the Hidden Order.

Maximum penalty: $1,000,000

4.1.8      Dealings to which this Part does not apply

For the avoidance of doubt, this Part does not apply to Transactions arising from:

(a)        the terms of a Relevant Product, including a redemption;

(b)       primary market actions, including an issue or allotment of, or an application or subscription for, a Relevant Product;

(c)        acceptance of an offer under an Off-Market Bid; and

(d)       the delivery of a Relevant Product under a Securities Lending Arrangement.

Note: There is no penalty for this Rule

Part 4.2 Pre-Trade Information—Exceptions

4.2.1      Exception—Block Trades

(1) In these Rules, Block Trade means a Transaction where:

(a)        if the Transaction is entered into other than by matching of Orders on an Order Book, the Participant acts:

(i)         on behalf of both buying and selling clients to that Transaction; or

(ii)       on behalf of a buying or selling client on one side of that Transaction and as Principal on the other side;

(b)       the Relevant Product is issued by the same issuer, in the same class, with the same paid-up value; and

(c)        the consideration for the Transaction is not less than:

(i)         $1,000,000 or more for Tier 1 Equity Market Products;

(ii)       $500,000 or more for Tier 2 Equity Market Products; and

(iii)      $200,000 or more for Tier 3 Equity Market Products; and

(iv)      $200,000 or more for CGS Depository Interests.

(2) For the purposes of paragraph (1)(b), Relevant Products that differ only in relation to the amount of dividend or distribution payable are in the same class.

(3) For the purposes of paragraph (1)(c):

(a)        Tier 1 Equity Market Products means those Equity Market Products notified by ASIC under these Rules and in accordance with subrule (4);

(b)       Tier 2 Equity Market Products means those Equity Market Products notified by ASIC under these Rules and in accordance with subrule (4); and

(c)        Tier 3 Equity Market Products means all Equity Market Products that are not Tier 1 or 2 Equity Market Products.

(4) For the purposes of subrule (3), the notification given by ASIC:

(a)        will be published on its website; and

(b)       takes effect from 20 business days following the date of the notification.

Note: There is no penalty for this Rule.

4.2.2      Exception—Large Portfolio Trades

(1) In these Rules, Large Portfolio Trade means a Transaction where:

(a)        if the Transaction is entered into other than by matching of Orders on an Order Book, the Participant acts:

(i)         on behalf of both buying and selling clients to that Transaction; or

(ii)       on behalf of a buying or selling client on one side of that Transaction and as Principal on the other side;

(b)       the Transaction is entered into pursuant to a single agreement between the buyer and seller for consideration in total of not less than $5,000,000; and

(c)        the Transaction comprises purchases or sales of Relevant Products in not less than 10 different classes for which the minimum consideration in each class is $200,000.

(2) Nothing in paragraph (1)(c) prevents the Transaction from comprising additional purchases or sales in other classes where the consideration for those classes is less than $200,000.

Note: There is no penalty for this Rule.

4.2.3 Exception—Trades with Price Improvement

(1) In these Rules, a Transaction is a Trade with Price Improvement where:

(a)        the Transaction is executed at a price per Relevant Product which is:

(i)         higher than the Best Available Bid and lower than the Best Available Offer for the Relevant Product by one or more Price Steps; or

(ii)       at the Best Mid-Point;

(b)       if the Transaction is entered into other than by matching of Orders on an Order Book, the Participant acts:

(i)         on behalf of both buying and selling clients to that Transaction; or

(ii)       on behalf of a buying or selling client on one side of that Transaction and as Principal on the other side; and

(c)        the consideration for the Transaction is greater than $0.

(2) For the purposes of this Rule, the Best Mid-Point is not limited to standard Price Steps for the Relevant Product.

Note: There is no penalty for this Rule.

4.2.4      Exception—Permitted Trades during the Post-Trading Hours Period

In these Rules, Permitted Trade during the Post-Trading Hours Period means a Transaction in a Relevant Product during the Post-Trading Hours Period in relation to that Relevant Product:

(a)        that completes an Order received prior to the end of Trading Hours for the Market (and, if there is an auction at the end of Trading Hours, prior to that auction);

(b)       that comprises a bona fide hedge;

(c)        if there is an auction at the end of Trading Hours for a Market, that completes an Order that narrowly missed execution during that auction;

(d)       that rectifies an error; or

(e)        that results in the Relevant Products the subject of the Transaction being sold by a nominee that holds those Relevant Products on behalf of a Funds Manager to another nominee that holds those Relevant Products on behalf of the same Funds Manager, and where the Participant acts for both clients.

Note: There is no penalty for this Rule.

4.2.5      Exception—Permitted Trades during the Pre-Trading Hours Period

In these Rules, Permitted Trade during the Pre-Trading Hours Period means a Transaction in a Relevant Product during the Pre-Trading Hours Period in relation to that Relevant Product where:

(a)        the Participant acts:

(i)         on behalf of both buying and selling clients to that Transaction; or

(ii)       on behalf of a buying or selling client on one side of that Transaction and as Principal on the other side; and

(b)       either:

(i)         overseas resident clients are involved in both sides of the Transaction; or

(ii)       an overseas resident client is involved in one side and the Participant is acting as Principal on the other side of the Transaction; and

(c)        a stock market maintained by a Recognised Stock Exchange either:

(i)         in the overseas client’s country of residence; or

(ii)       if both sides of the Transaction involve overseas resident clients, in the country of residence of one of those clients,

is open for trading at that time.

Note: There is no penalty for this Rule.

4.2.6      Exception—Out of Hours Trade

In these Rules, Out of Hours Trade means a Transaction in a Relevant Product entered into by a Participant:

(a)        during the period after the Post-Trading Hours Period in relation to that Relevant Product on a Trading Day and before the Pre-Trading Hours Period in relation to that Relevant Product on the next Trading Day; and

(b)       if the Transaction is entered into on behalf of a client, where the relevant Order was received from the client during the period set out in paragraph (a) and the Participant entered into the other side of the Transaction as Principal or on behalf of another client whose instructions were received at any time.

Note: There is no penalty for this Rule.


 

Chapter 4A: Crossing Systems

Part 4A.1      Application

4A.1.1   Application of Chapter

This Chapter applies to:

(a)        Participants of the ASX Market, the ASX24 Market, and of the Chi-X Market; and

(b)       Orders and Transactions in Financial Products able to be traded on a Market referred to in paragraph (a),

unless otherwise specified in each Rule.

Note: There is no penalty for this Rule.

Part 4A.2      Reporting requirements for Crossing Systems

4A.2.1   Reporting requirements for Crossing Systems—Crossing System Initial Report

(1) A Participant that operates, or proposes to operate, a Crossing System must lodge with ASIC a report (the Crossing System Initial Report) which describes:

(a)        the date on which the Crossing System began operating, or will begin to operate, in this jurisdiction;

(b)       access to the Crossing System, including the criteria for determining persons who are eligible to use the Crossing System;

(ba)  if applicable, the information required by item 5, column 3, of the Table in subrule 4A.3.1(2);

(c)        how Orders are prioritised and matched, and Transactions are executed, on the Crossing System;

(d)       how the price for Transactions on the Crossing System is determined;

(e)        the fees, commissions, rebates or other charges paid by or to the Participant and users of the Crossing System;

(f)        whether the Participant that operates the Crossing System deals as Principal with clients on the Crossing System and if so, the arrangements the Participant has in place for the management of conflicts of interest that may arise between the Participant and those clients;

(g)       the name of the Market or Markets to which:

(i)         Transactions executed on the Crossing System are reported; and

(ii)       Orders matched on the Crossing System are transmitted for execution;

(h)       where more than one Market is named under paragraph (g), the circumstances in which each Market is used for the purposes set out in paragraph (g); and

(i)         whether Orders on the Crossing System are purged at the end of the day or remain on the Crossing System until matching or execution on the Crossing System next resumes, and if the Orders are not purged, the period of time they remain on the Crossing System.

(2) The Participant must lodge the Crossing System Initial Report with ASIC:

(a)        within 20 business days from the date this Rule commences; or

(b)       no later than 20 business days before the day the Participant begins to operate the Crossing System,

whichever occurs later.

Maximum penalty: $100,000

4A.2.2   Reporting Requirements for Crossing Systems – Crossing System Monthly Report

A Participant that operates a Crossing System during a calendar month must, if there have been any changes during that calendar month to the information last provided to ASIC in the Participant’s Crossing System Initial Report or Crossing System Monthly Report:

(a)        prepare, within 20 business days of the end of the calendar month, a report (the Crossing System Monthly Report) setting out the changes to the information provided in the Participant’s Crossing System Initial Report or Crossing System Monthly Report last provided to ASIC; and

(b)       provide the Crossing System Monthly Report prepared under paragraph (a) to ASIC as soon as practicable after it has been prepared.

Maximum penalty: $100,000

Part 4A.3      Disclosure Requirements for Crossing Systems

4A.3.1   Disclosure requirements for Crossing Systems—Information on a website

(1) Subject to subrule (6), a Participant that operates a Crossing System must make available Publicly Available Crossing System Information in relation to that Crossing System:

(a)        on a website that is publicly accessible; and

(b)       free of charge.

(2) For the purposes of these Rules, Publicly Available Crossing System Information means the information set out in column 3 of the following Table.

 

Item

Type of information

Publicly Available Crossing System Information

1

Operator

The code identifying the Crossing System.

2

Start Date

The date the Crossing System began to operate in this jurisdiction.

3

Products

The types of Financial Products traded on the Crossing System.

4

Access Criteria

The criteria used to determine eligibility to use the Crossing System.

5

Aggregation and other Crossing Systems

If Orders may be executed or matched in another Crossing System because they are transmitted by the Participant or by the Participant's Crossing System:

(a) to one or more other Crossing Systems or to a Participant that operates a Crossing System; or

(b) to another person (an Aggregator) who further transmits the Orders to one or more other Crossing Systems or to a Participant that operates a Crossing System; or

if Orders may be executed or matched in the Participant’s Crossing System with Orders received (whether directly, or via an Aggregator) from a Crossing System operated by another Participant, or from a Participant that operates a Crossing System:

(c)  the code identifying the other Crossing System;

(d) the legal name of the Participant that operates the other Crossing System; and

(e) for each Crossing System and Participant identified under paragraphs (c) and (d), whether Orders are transmitted to, or received from the other Crossing System or Participant (whether directly, or via an Aggregator), or both.

Note: An Aggregator may be, for example, another Participant that receives orders and operates an aggregation algorithm that transmits received orders to one or more other execution venues (licensed markets, or other Crossing Systems).

(3) A Participant must, within one business day of implementing changes to the operation of the Crossing System described in the Publicly Available Crossing System Information, update the website where the Publicly Available Crossing System Information is made available, to reflect those changes.

(4) A Participant must give ASIC a copy of:

(a)        the Publicly Available Crossing System Information made available under subrule (1); and

(b)       each update to the Publicly Available Crossing System Information made available under subrule (3),

within one business day of making that information available on the website under this Rule.

(5) ASIC may determine and publish on its website a notification of the Crossing System codes referred to in subrule (2).

(6) A Participant does not need to comply with this Rule until 3 months have passed from the commencement of this Rule.

Maximum penalty: $100,000

4A.3.2   Disclosure requirements for Crossing Systems—Information for users

(1) Subject to subrule (6), a Participant that operates a Crossing System must:

(a)        prior to accepting an Order from a client for the first time after the time at which a Participant must comply with this Rule, provide the client with a copy of the Publicly Available Crossing System Information or inform the client of the website address where that information is available; and

(b)       for all clients who have been provided with a copy of the Publicly Available Crossing System Information or informed of the website address where that information is available under paragraph (a), inform those clients each time an update to the Publicly Available Crossing System Information is made available under subrule 4A.3.1(3), prior to accepting an Order from that client after the information has been updated.

(2) A Participant that operates a Crossing System must:

(a)        prior to accepting an Order from a client for the first time; and

(b)       prior to accepting an Order from a client after the Non-Public Crossing System Information has been updated under subrule (3),

provide that client with a document containing the Non-Public Crossing System Information in relation to that Crossing System.

(3) A Participant must, within one business day of implementing changes to the operation of the Crossing System described in the Non-Public Crossing System Information, update the Non-Public Crossing System Information to reflect those changes.

(4) A Participant must give ASIC a copy of:

(a)        the Non-Public Crossing System Information provided under subrule (2), within one business day of first providing that information; and

(b)       each update to the Non-Public Crossing System Information under subrule (3), within one business day of that update.

(5) For the purposes of these Rules, Non-Public Crossing System Information means the information set out in column 3 of the following Table.

               

Item

Type of information

Non-Public Crossing System Information

1

User obligations

A description of the obligations imposed on users of the Crossing System by the operator of the Crossing System.

2

Order Types

A description of the order types available to those who have access to the Crossing System, including a description of the characteristics of each order type.

3

Operations

A description of the operation of the Crossing System, including but not limited to:

(a) how Orders are managed, including how prices are determined and cancellations are managed;

(b) details of any different treatment or arrangements for certain users or order types;

(c)  the level of anonymity given to Orders, including whether indications of interest are allowed;

(d) the circumstances in which Principal Orders may interact with other Orders in the Crossing System, and the nature of the Principal Orders (for example, proprietary desk, facilitation, or market-maker);

(e) whether Orders of Related Bodies Corporate of the operator enter the system, and if so, how conflicts arising because Orders of Related Bodies Corporate enter the Crossing System, are managed;

(f)  how any other conflicts of interest that may arise are managed; and

(g) if there are liquidity providers or market makers whose Orders access the Crossing System, the commitments (if any) they may have and any benefits they receive.

4

Fees

The fees imposed for Orders to gain access to the Crossing System, or to be matched or executed in the Crossing System, and an indication whether those fees differ from (e.g. by being in addition to) the Participant’s standard fees.

(6) A Participant does not have to comply with this Rule until 6 months have passed from the commencement of this Rule.

Maximum penalty: $100,000

4A.3.3   Notification of Crossing System outages

(1) Subject to subrule (2), if technical or other system issues materially affect the efficiency of or proper functioning of a Crossing System operated by a Participant, that Participant must provide the following information, in writing, to ASIC and all users with Orders in the Crossing System other than users who are Retail Clients:

(a)        a description of the effect of the technical or other system issues;

(b)       how the the technical or other system issues are being managed by the Participant;

(c)        any alternative arrangements for users’ Orders that have been put in place by the Participant while the technical or other systems issues persist; and

(d)       when the the technical or other system issues have been resolved,

as soon as practicable after the technical or other system issue arises, or the issue is resolved, as applicable.

(2) A Participant does not have to comply with this Rule until 6 months have passed from the commencement of this Rule.

Maximum penalty: $100,000

Part 4A.4      Fair treatment, fairness and priority in dealing and opting out by users of Crossing Systems

4A.4.1   Fair treatment of all users of a Crossing System

(1) Subject to subrule (3) a Participant that operates a Crossing System must ensure that the Crossing System is operated by a common set of procedures that balance the interests of all users of the Crossing System and do not unfairly discriminate between users of the Crossing System.

(2) Subrule (1) does not prevent a Participant that operates a Crossing System from providing less favourable treatment for its own use of the Crossing System, or less favourable treatment for use of the Crossing System by its Related Bodies Corporate.

(3) A Participant does not have to comply with this Rule until 6 months have passed from the commencement of this Rule.

Maximum penalty: $100,000

4A.4.2   Fairness and priority in dealing

(1) Subject to subrule (2) a Participant that operates a Crossing System must ensure that the Crossing System deals fairly and in due turn with:

(a)        Clients’ Orders; and

(b)       a Client Order and an Order of the Participant trading as Principal.

(2) A Participant does not have to comply with this Rule until 6 months have passed from the commencement of the Rule.

Maximum penalty: $1,000,000

4A.4.3   Relevant factors

(1) In considering whether Rule 4A.4.2 has been complied with, the following factors are relevant:

(a)        the Participant acts in accordance with its instructions;

(b)       Orders that do not involve the exercise of discretion by the Participant in relation to the time or price or quantity of the Order are entered in the Crossing System in the sequence in which they are received, and otherwise as expeditiously as practicable;

(c)        Orders of a client (which is not a Prescribed Person) that involve the exercise of discretion by the Participant in relation to the time or price or quantity of the Order are given preference, within the meaning of subrule (2), over the Participant’s Principal Orders, unless the client otherwise consents;

(d)       if the sequence of entry of Orders into the Crossing System is not clearly established by the time the Orders were received, and one of the Orders is for the Participant trading as Principal, the Participant gives preference to the Order of a client over the Participant’s Principal Order;

(e)        if the Participant has acted in accordance with its procedures to ensure that a person initiating, transmitting or executing an Order who is aware of instructions of a client (which is not a Prescribed Person) to deal in the relevant Financial Products that has not been entered in the Crossing System does not use that information to the disadvantage of that client;

(f)        the Participant buys or sells for a Wholesale Client;

(g)       allocation of Transactions executed on the Crossing System occurs fairly; and

(h)       a Participant’s Principal  Orders are not knowingly interposed between Orders of its clients that would otherwise have Crossed.

(2) In paragraph (1)(c), a reference to a Participant giving preference to an Order of a client over the Participant’s Principal Orders, means that from the time of receipt of the Order until it is fully executed, the Participant does not enter into, as Principal, a Transaction executed on the Crossing System for the same Financial Products on the same terms, having regard to subrule (3), unless:

(a)        the Financial Products are allocated to the client in accordance with the client’s instructions; or

(b)       the Financial Products are allocated to the client pursuant to an allocation policy previously disclosed to the client, to which the client consents, under which the Participant may buy or sell (and be allocated) the same Financial Products as Principal.

(3) For the purposes of subrule (2), a limit Order which cannot be executed owing to price differences is not on the same terms.

(4) A Participant does not have to comply with this Rule until 6 months have passed from the commencement of the Rule.

Maximum penalty: $1,000,000

4A.4.4   Opting out of Crossing Systems

(1) Subject to subrule (2), a Participant that operates a Crossing System must permit a client or other user of the Crossing System to opt out of having its Orders sent to the Participant’s Crossing System (including any other Crossing System that may be accessible through the Participant’s Crossing System), and the Participant must not impose on a user that opts out any additional operational or administrative requirements as a consequence of opting out of the Crossing System.

(2) A Participant does not have to comply with this Rule until 3 months have passed from the commencement of this Rule.

Maximum penalty: $100,000

Part 4A.5      Crossing Systems—Monitoring and suspicious activity reporting

4A.5.1   Monitoring activities in a Crossing System

(1) Subject to subrule (4), a Participant that operates a Crossing System must:

(a)        monitor use of its Crossing System for compliance with the obligations of users described in subrule 4A.3.2(5);

(b)       monitor use of its Crossing System for compliance with the operating procedures of the Crossing System; and

(c)        take action to ensure breaches identified by the Participant during the course of the monitoring undertaken under paragraphs (a) and (b) do not recur.

(2) A Participant must notify ASIC, in writing, of all significant breaches identified by the Participant during the course of monitoring undertaken under Rule 4A.5.1as soon as practicable after identification of the relevant breach.

(3) A Participant must keep records:

(a)        that demonstrate the monitoring activities it undertakes under Rule 4A.5.1, and

(b)       of all breaches identified  under Rule 4A.5.1,

for a period of 7 years.

(4) A Participant does not have to comply with this Rule until 3 months have passed from the commencement of this Rule.

Maximum penalty: $100,000

4A.5.2   Crossing System suspicious activity reporting

(1) Subject to subrules (2) and (3), if a Participant that operates a Crossing System has reasonable grounds to suspect that:

(a)        a person (the Insider) has placed an Order into or entered into a Transaction on the Crossing System operated by the Participant in relation to a Financial Product while in possession of inside information (within the meaning of section 1042A of the Act), whether or not the Participant is aware of:

(i)         the identity of the Insider; or

(ii)       all of the details of the Order or Transaction; or

(b)       a Transaction or an Order transmitted to or executed on the Crossing System operated by the Participant has or is likely to have the effect of:

(i)         creating an artificial price for trading in Financial Products on a Financial Market operated in this jurisdiction;

(ii)       maintaining at a level that is artificial (whether or not it was previously artificial) a price for trading in Financial Products on a Financial Market operated in this jurisdiction;

(iii)      creating, or causing the creation of, a false or misleading appearance of active trading in Financial Products on a Financial Market operated in this jurisdiction; or

(iv)      creating, or causing the creation of, a false or misleading appearance with respect to the market for, or the price for trading in, Financial Products on a Financial Market operated in this jurisdiction,

whether or not the Participant is aware of:

(v)       the intention of any party to the Transaction or Order; or

(vi)      all of the details of the Transaction or Order,

the Participant must, as soon as practicable, notify ASIC in writing of the details of the Transaction or Order (to the extent known to the Participant) and the reasons it suspects the matter set out in paragraphs (a) and/or (b).

(2) A Participant is not required to notify ASIC under subrule (1) if the Participant has reported the information that would otherwise be required to be contained in the notification to ASIC under subrule (1) to the Australian Transaction Reports and Analysis Centre under section 41 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 or under section 16 of the Financial Transaction Reports Act 1988.

(3) A Participant is not required to comply with this Rule until 3 months have passed from the commencement ofthis Rule.

Maximum penalty: $20,000

4A.5.3   Confidentiality

A Participant who notifies ASIC under subrule 4A.5.2(1) must not disclose that the notification was made, or the information contained in the notification, to any person other than:

(a)        for the purposes of seeking legal advice; or

(b)       as required by law.

Maximum penalty: $20,000

Part 4A.6- Crossing System Tick Sizes and system controls

4A.6.1 Crossing System operators to use standard Tick Sizes

(1) Subject to subrules (2) and (3), a Participant that operates a Crossing System must not accept, display or queue Orders in its Crossing System in Tick Sizes less than:

(a)        $0.01 for an Equity Market Product priced at equal to or greater than $2.00;

(b)       $0.005 for an Equity Market Product priced at equal to or greater than $0.10 and less than $2.00; and

(c)        $0.001 for an Equity Market Product priced at less than $0.10.

(2) Subrule (1) does not apply to an Order that, if executed, would result in a Block Trade, Large Portfolio Trade or, in the context of Rule 4.2.3, a Transaction at the Best Mid-Point.

(3) A Participant does not have to comply with this Rule until 3 months have passed from the commencement of this Rule.

Maximum penalty: $1,000,000

4A.6.2   Crossing System - efficiency and integrity controls

(1) Subject to subrule (3), a Participant that operates a Crossing System must at all times have appropriate automated filters designed to ensure the efficiency and integrity of the Crossing System.

(2) Subject to subrule (3), a Participant that operates a Crossing System must ensure it has controls that enable immediate:

(a)        suspension of, limitation of, or prohibition on, the entry into any Crossing System operated by the Participant of Orders in a series of related Orders where the Participant has identified that Orders in the series have entered the Crossing System operated by the Participant and have interfered with or are likely to interfere with the efficiency or integrity of the Crossing System; and

(b)       cancellation of Orders in a series that have already entered a Crossing System operated by the Participant where the entry of further Orders in the series has been suspended, limited or prohibited under paragraph (a).

(3) A Participant that is subject to Rule 5.6.1 and 5.6.3 of the ASIC Market Integrity Rules (ASX Market) 2010 or the ASIC Market Integrity Rules (Chi-X Australia Market) 2011 does not have to comply with this Rule.

Note: Rule 5.6.1 and 5.6.3 require Participants of the ASX and Chi-X markets to have automated filters and controls.


Chapter 5: Post-trade transparency

Part 5.1A      Application

5.1A.1   Application of Chapter

(1) This Chapter applies to:

(a)        Equity Market Operators and CGS Market Operators;

(b)       Equity Market Participants and CGS Market Participants; and

(c)        except in Rule 5.1.6A, Orders and Transactions in Equity Market Products and CGS Depository Interests,

(2) In this Chapter, Relevant Products means Equity Market Products and CGS Depository Interests.

Note: There is no penalty for this Rule.

Part 5.1 Transactions must be post-trade transparent

5.1.1      Participants to report Transactions done other than on an Order Book of a Market

(1) The Reporting Participant must report Post-Trade Information for a Transaction entered into otherwise than by matching of Orders on an Order Book, to a Market Operator.

(2) The Reporting Participant must report Post-Trade Information for a Transaction referred to in subrule (1):

(a)        subject to paragraph (b):

(i)         if the Transaction is matched or executed during Normal Trading Hours, immediately after the Transaction is executed;

(ii)       if the Transaction is matched or executed during a period in which there is an auction on the Market to which the Transaction will be reported, immediately after that auction;

(iii)      if the Transaction is executed outside of the times referred to in subparagraphs (i) and (ii), by no later than 15 minutes before the time Normal Trading Hours next resume, or at such earlier time as is required by the Operating Rules of the Market under which the Reporting Participant determines the Transaction has taken place;

(b)       if the Transaction is:

(i)         a Large Principal Transaction; or

(ii)       a Large Portfolio Trade in which the Participant acts as Principal as either buyer or seller,

       as soon as practicable after the Reporting Participant is no longer exposed to risk as Principal in connection with the Transaction, and by no later than the time set out in subrule (3).

(3) The Reporting Participant must report Post-Trade Information for a Transaction referred to in paragraph (2)(b):

(i)         if the Transaction is executed before 1.00 pm on a Trading Day, by no later than 15 minutes prior to the next Trading Day; or

(ii)       if the Transaction is executed after 1.00 pm on a Trading Day, by no later than 1.00 pm on the next Trading Day.

(4) The Reporting Participant must take reasonable steps to ensure that all Post-Trade Information it reports under subrule (2) is and remains complete, accurate and up-to-date.

(4A) Without limiting subrule (4), a Reporting Participant must have in place systems and controls to ensure that each Transaction it reports under subrule (2) and (3) meets all of the criteria for:

(a)        the exception in subrule 4.1.1(2) relied upon by the Reporting Participant to enter into the Transaction other than in accordance with subrule 4.1.1(1); and

(b)       the exception in paragraph (2)(b), if the Reporting Participant has relied upon that exception to report the Transaction other than in accordance with the times set out in paragraph (2)(a).

(4B) A Reporting Participant that is notified by a Market Operator under paragraph 5.1.4A(3)(b) in relation to a Transaction it has reported must immediately amend or cancel the Transaction or take other appropriate measures in relation to the Transaction, having regard to the Reporting Participant’s obligations under this Rule and Rule 4.1.1.

(5) A Participant that enters into more than one Transaction as Principal and in the same class of Relevant Products, at the same time and for the same price, for the purposes of executing a Buy Order of one client against a Sell Order of another client, must take reasonable steps to ensure that those Transactions are reported as a single Transaction.

Maximum penalty: $1,000,000

5.1.2      Reporting Participant

(1) In these Rules, Reporting Participant means, in relation to a Transaction:

(a)        where a Participant is the only party to the Transaction that is required to comply with these Rules, the Participant; or

(b)       where more than one party to the Transaction is required to comply with these Rules, the Executing Participant.

(2) In subrule (1), Executing Participant means:

(a)        the Participant that receives the Order and executes the Transaction without transmitting the Order to another Participant (for example, a Participant that executes an Order on its own Crossing System); or

(b)       if both Participants satisfy paragraph (a) (for example, Participants that manually negotiate a Transaction):

(i)         the Participant that is the seller, or is acting on behalf of the seller; or

(ii)       as otherwise agreed between the Participants.

(3) If a Participant is determined to be the Executing Participant in accordance with subparagraph (2)(b)(ii), the Participant that is the seller, or is acting on behalf of the seller, must document the agreement reached.

(4) Each Participant that is a party to a Transaction to which subrule 5.1.1(1) applies must take reasonable steps to determine, prior to the Transaction being executed, which party is the Reporting Participant.

Maximum penalty: $100,000

5.1.3      Application to constituent parts of portfolio trade

Where a Participant enters into a single agreement to buy or sell more than one class of Relevant Products, the Participant may consider each class of Relevant Products to be bought or sold under the agreement as a separate Transaction for the purposes of determining whether that Transaction is a Large Principal Transaction.

Note: There is no penalty for this Rule.

5.1.4      Market Operator to immediately make available Post-Trade Information

(1) A Market Operator must make available Post-Trade Information for its Market:

(a)        for Transactions executed or reported during Trading Hours, Continuously and in Real-Time; and

(b)       for Transactions executed or reported outside of Trading Hours, before Trading Hours next resume,

to all persons in this jurisdiction who have entered into an arrangement with the Market Operator to access the Post-Trade Information on that basis.

(2) The Market Operator must take reasonable steps to ensure that Post-Trade Information it makes available under subrule (1) is and remains complete, accurate and up-to-date.

Maximum penalty: $1,000,000

5.1.4A   Market Operator to validate Post-Trade Information

(1) Without limiting subrule 5.1.4(2), a Market Operator that receives a report of Post-Trade Information for a Transaction from a Reporting Participant under Rule 5.1.1 must have in place arrangements to determine whether the Transaction as reported meets the criteria for:

(a)        the exception in subrule 4.1.1(2) relied upon by the Reporting Participant to enter into the Transaction other than in accordance with subrule 4.1.1(1); and

(b)       where applicable, the exception in paragraph 5.1.1(2)(b) relied upon by the Reporting Participant to report the Transaction other than in accordance with the times set out in paragraph 5.1.1(2)(a).

(2) Without limiting subrule (1), the Market Operator must have in place arrangements that enable the Market Operator to determine that the applicable criteria set out in column 3 of the following Table are met in relation to each Transaction of the kind set out in column 1, as follows:

(a)        for all applicable criteria in relation to a Transaction, other than the criteria in items 3, 5 or 12, before accepting a report of Post-Trade Information for the Transaction;

(b)       for the applicable criteria in items 3, 5 or 12, as soon as practicable after the report of Post-Trade Information for the Transaction is received, and by no later than the end of the same Trading Day.

                                              

Exception relied upon by Participant

Item

Market Operator must determine that the following applicable criteria are met

Block Trades (see paragraph 4.1.1(2)(a))

1

For a Transaction reported as a Block Trade, the consideration for the Transaction meets the criteria in Rule 4.2.1

2

For a Transaction reported as a Block Trade, the Relevant Product was not in a Trading Suspension at the time the Transaction was reported

Large Portfolio Trades (see paragraph 4.1.1(2)(b) and subparagraph 5.1.1(2)(b)(ii))

3

For a Transaction reported as a Large Portfolio Trade, the consideration for each Transaction and the total consideration for the series of Transactions meets the criteria in Rule 4.2.2

4

For a Transaction reported as a Large Portfolio Trade, the Transaction has been reported to the Market Operator by no later than the time set out in subrule 5.1.1(3)

5

For a Transaction reported as a Large Portfolio Trade, the Relevant Product was not in a Trading Suspension at the time the Transaction was reported as being executed

Trade At or Within the Spread or a Trade With Price Improvement (see paragraph 4.1.1(2)(c))

6

For a Transaction reported as a Trade At or Within the Spread or a Trade with Price Improvement, the price per Relevant Product for the Transaction meets the criteria in subrule 4.2.3(1) based on the Market Operator’s calculation of the Best Available Bid and Best Available Offer at the time the Transaction is reported

Permitted Trades During Post-Trading Hours Period (see paragraph 4.1.1(2)(d))

7

For a Transaction reported as a Permitted Trade During the Post-Trading Hours Period, the Post-Trade Information indicates that the Transaction was entered into during the Post-Trading Hours Period as set out in Rule 4.2.4

Permitted Trades During Pre-Trading Hours Period (see paragraph 4.1.1(2)(e))

8

For a Transaction reported as a Permitted Trade During the Pre-Trading Hours Period, the Post-Trade Information indicates that the Transaction was entered into during the Pre-Trading Hours Period as set out in Rule 4.2.5

Out of Hours Trades (see paragraph 4.1.1(2)(f))

9

For a Transaction reported as an Out of Hours Trade, the Post-Trade Information indicates that the Transaction was entered into outside of Normal Trading Hours as set out in Rule 4.2.6

Large Principal Transactions (see subparagraph 5.1.1(2)(b)(i))

10

For a Transaction reported as a Large Principal Transaction, the consideration for the Transaction meets the criteria in Rule 5.2.1

11

For a Transaction reported as a Large Principal Transaction, the Transaction has been reported to the Market Operator by no later than the time set out in subrule 5.1.1(3)

12

For a Transaction reported as a Large Principal Transaction, the Relevant Product was not in a Trading Suspension at the time the Transaction was reported as being executed

Note: For the purposes of Table item 6, the exception in paragraph 4.1.1(2)(c) for a Trade At or Within the Spread is replaced with an exception for a Trade with Price Improvement on the day that is 6 months after the day on which this Rule commences.

(3) Where a Market Operator determines under this Rule that a Transaction reported to it under Rule 5.1.1 does not meet one or more of the applicable criteria set out in the Table in subrule (2), other than the criteria in items 3, 5 or 12, the Market Operator:

(a)        must not accept the report of Post-Trade Information for the Transaction;

(b)       must notify the Reporting Participant that the Market Operator will not accept the report of Post-Trade Information for the Transaction; and

(c)        must not make available Post-Trade Information for the Transaction under Rule 5.1.4.

(4) Where a Market Operator determines under this Rule that a Transaction reported to it under Rule 5.1.1 does not meet one or more of the applicable criteria set out in items 3, 5 or 12 of the Table in subrule (2), the Market Operator must take steps to cancel the Transaction or take other appropriate measures in relation to the Transaction, having regard to the Market Operator’s obligations under this Rule and Rule 5.1.4.

Maximum penalty: $1,000,000

5.1.5      Market Operator to make available Post-Trade Information on reasonable commercial terms and on a non-discriminatory basis

Subject to Rule 6.2.1, where a person in this jurisdiction seeks access to Post-Trade Information, the Market Operator must make available the Post-Trade Information:

(a)        on reasonable commercial terms; and

(b)       on a non-discriminatory basis.

Maximum penalty: $1,000,000

5.1.6      Market Operator to make available Trading Information on a website within 20 minutes

(1) A Market Operator must make available Trading Information for its Market:

(a)        on a website that is publicly accessible;

(b)       free of charge; and

(c)        on a delayed basis of no more than 20 minutes.

(2) For the purposes of subrule (1), Trading Information means, for each Equity Market Product that is quoted on the Market, the information set out in column 3 of the following Table.

Item

Label

Post-Trade Information

1

Product identification

The symbol, assigned in accordance with Rule 6.2.3, that identifies the Equity Market Product to which the information referred to in items 2 to 8 of this Table relates

2

Last traded price

The price per Equity Market Product of the last Transaction in the Equity Market Product whether on an Order Book of the relevant Market or reported to the relevant Market as a Trade at or Within the Spread or a Trade with Price Improvement

3

Bid

The highest Bid for the Equity Market Product on an Order Book of the relevant Market

4

Offer

The lowest Offer for the Equity Market Product on an Order Book of the relevant Market

5

High

The highest price at which a Transaction in the Equity Market Product has been executed whether on an Order Book of the relevant Market or reported to the relevant Market as a Trade at or Within the Spread or a Trade with Price Improvement on the Trading Day to which the information relates

6

Low

The lowest price at which a Transaction in the Equity Market Product has been executed whether on an Order Book of the relevant Market or reported to the relevant Market as a Trade at or Within the Spread or a Trade with Price Improvement on the Trading Day to which the information relates

7

Volume

The total number of Equity Market Products in all Transactions in the Equity Market Product executed on an Order Book of, or reported to, the relevant Market, for the Trading Day to which the information relates

8

Trading status

The trading status for the Equity Market Product

9

Delay

If the information in items 1 to 8 of this Table is made available on a delayed basis, the delay, in minutes

Note 1: Items 3 and 4 of this Table refer to information in relation to bids and offers on an Order Book. Accordingly, the Trading Information made available by a Market Operator under items 3 and 4 of this Table must not include Transactions in Equity Market Products reported to the Market Operator under Rule 5.1.1 (Participants to report Transactions done other than on an Order Book of a Market).

Note 2: Items 2, 5 and 6 of this Table refer to information in relation to prices on an Order Book and also to information in relation to Trades at or Within the Spread and Trades with Price Improvement. The Trading Information made available by a Market Operator under items 2, 5 and 6 of this Table must not include Transactions in Equity Market Products reported to the Market Operator under Rule 5.1.1 (Participants to report Transactions done other than on an Order Book of a Market), other than Transactions reported as a Trade at or Within the Spread or a Trade with Price Improvement. 

(3) For the purposes of subrule (1), Trading Information means, for each CGS Depository Interest that is quoted on the Market, the information set out in column 3 of the following Table.

Item

Label

Post-Trade Information

1

Product identification

The symbol, assigned in accordance with Rule 6.2.3, that identifies the CGS Depository Interest to which the information referred to in items 2 to 8 of this Table relates

2

Last traded price

The price per CGS Depository Interest of the last Transaction in the CGS Depository Interest whether on an Order Book of the relevant Market or reported to the relevant Market as a Trade at or Within the Spread or a Trade with Price Improvement

3

Bid

The highest Bid for the CGS Depository Interest on an Order Book of the relevant Market

4

Offer

The lowest Offer for the CGS Depository Interest on an Order Book of the relevant Market

5

High

The highest price at which a Transaction in the CGS Depository Interest has been executed whether on an Order Book of the relevant Market or reported to the relevant Market as a Trade at or Within the Spread or a Trade with Price Improvement on the Trading Day to which the information relates

6

Low

The lowest price at which a Transaction in the CGS Depository Interest has been executed whether on an Order Book of the relevant Market or reported to the relevant Market as a Trade at or Within the Spread or a Trade with Price Improvement   on the Trading Day to which the information relates

7

Number of Trades

The number of Transactions in the CGS Depository Interest executed on an Order Book of, and  reported to, the relevant Market on the Trading Day to which the information relates

8

Value

The total value of all Transactions in the CGS Depository Interest executed on an Order Book of, or reported to, the relevant Market, for the Trading Day to which the information relates

9

Trading Status

The trading status for the CGS Depository Interest

10

Coupon

For the CGS Depository Interest, the fixed interest amount paid at regular intervals

11

Maturity Date

For the CGS Depository Interest, the date on which the principal will be repaid

12

Face Value

For the CGS Depository Interest, the principal or redemption value

13

Delay

If the information in items 1 to 12 of this Table is made available on a delayed basis, the delay, in minutes

Note 1: Items 3 and 4 of this Table refer to information in relation to bids and offers on an Order Book. Accordingly, the Trading Information made available by a Market Operator under items 3 and 4 of this Table must not include Transactions in CGS Depository Interests reported to the Market Operator under Rule 5.1.1 (Participants to report Transactions done other than on an Order Book of a Market), other than a Transaction reported as a Trade with Price Improvement.

Note 2: Items 2, 5 and 6 of this Table refer to information in relation to prices on an Order Book and also to information in relation to Trades at or Within the Spread and Trades with Price Improvement. The Trading Information made available by a Market Operator under items 2, 5 and 6 of this Table must not include Transactions in CGS Depository Interests reported to the Market Operator under Rule 5.1.1 (Participants to report Transactions done other than on an Order Book of a Market), other than Transactions reported as a Trade at or Within the Spread or a Trade with Price Improvement.

Maximum penalty: $100,000

5.1.6A   Market Operator to make available Course of Sales information within three days

(1) Subject to subrule (5), a Market Operator must make available, in accordance with subrule (3), Course of Sales Information for each Transaction in a Financial Product executed on or reported to its Market.

(2) For the purposes of these Rules, Course of Sales Information means, for each Financial Product that is quoted on the Market, the information set out in column 3 of the following Table:

 

Item

Type of information

Course of Sales Information

1

Product identification

The symbol, assigned in accordance with Rule 6.2.3, or by ASX, that identifies each Financial Product to which the information referred to in items 2 to 9 of this Table relates.

2

Transaction time

The time at which each Transaction was executed by, or a report was received by, the Market Operator.

3

Price

The price of each Financial Product that is the subject of each Transaction.

4

Volume

The number of Financial Products that are the subject of each Transaction.

5

Value

The total dollar value of each Transaction (Volume multiplied by Price).

6

Buy PID

The Participant identifier for the buyer in each Transaction.

7

Sell PID

The Participant identifier for the seller in each Transaction.

8

Condition Code

If the Transaction was a Crossing, the code applicable to the type of Crossing.

9

Execution Venue

The code identifying the market, Crossing System or other facility on which the Transaction was executed.

(3) A Market Operator must make available the information required under subrule 5.1.6A(1):

(a)        for each Transaction in a Financial Product executed on, or reported to its Market, on the third business day after the Transaction was executed;

(b)       on reasonable commercial terms; and

(c)        on a non-discriminatory basis.

(4) ASIC may determine and publish on its website a notification of the execution venue codes referred to in item 9 of the Table in subrule (2).

(5) A Market Operator:

(a)        does not have to comply with this Rule until 1 month has passed from the commencement of this Rule; and

(b)       does not have to provide the execution venue code referred to in item 9 of the Table in  subrule (2) until the day specified in paragraph 5A.1.1(1)(b).

Note: Paragraph 5A.1.1(1)(b) specifies the date on which Equity Market Participants and CGS Market Participants must comply with Chapter 5A (Regulatory Data).

Maximum penalty: $1,000,000

5.1.7      Post-Trade Information—Equity Market Products

In these Rules, Post-Trade Information means:

(a)        in relation to a Transaction in Equity Market Products entered into otherwise than matching of Orders on an Order Book and reported by the Reporting Participant to the Market Operator, the information set out in items 1 to 9 of the following Table;

(b)       in relation to a Transaction in Equity Market Products entered into by matching of an Order on an Order Book:

(i)         the information set out in items 2 and 4 of the following Table in relation to that Order; and

(ii)       the information set out in items 1, 3 and 5 to 9 of the following Table, to the extent that the information is unable to be readily determined by reference to both Pre-Trade Information that was made available in relation to that Order and the information referred to in subparagraph (i); and

(c)        in relation to a Transaction in Equity Market Products referred to in paragraph (a) or (b) that is cancelled, the information set out in items 7 and 8 of the following Table.

Item

Label

Post-Trade Information

1

Trade execution date (as at date)

The date on which the Transaction is executed, unless the Transaction is reported on the same day it is executed

2

Trading time

The time at which the Transaction was executed

3

Product identification

The symbol, assigned in accordance with Rule 6.2.3, that identifies the Equity Market Product the subject of the Transaction

4

Volume

The number of Equity Market Products the subject of the Transaction

5

Price

The price per Equity Market Product of the Transaction

6

Currency

The currency of the price per Equity Market Product of the Transaction, unless the Transaction was in Australian dollars

7

Trade cancellation indicator

If the Transaction is cancelled, a notation or code to identify that the Transaction is cancelled

8

Original trade date

If the Transaction is cancelled, the information in item 1 of this Table

9

Exception code

If the Transaction was executed:

Ÿ   otherwise than by matching of Orders on an Order Book; or

Ÿ   without Pre-Trade Information in relation to the Order being made available,

a unique code that identifies the exception in subrule 4.1.1(2) or 4.1.2(2) relied upon

Note: There is no penalty for this Rule.

5.1.7A   Post-Trade Information—CGS Depository Interests

In these Rules, Post-Trade Information means:

(a)        in relation to a Transaction in CGS Depository Interests, the information set out in items 1 to 5 and 8 of the following Table; and

(b)       in relation to a Transaction referred to in paragraph (a) that is cancelled, the information set out in items 6 and 7 of the following Table.

Item

Label

Post-Trade Information

1

Trade execution date (as at date)

The date on which the Transaction is executed, unless the Transaction is reported on the same day it is executed

2

Trading time

The time at which the Transaction was executed

3

Product identification

The symbol, assigned in accordance with Rule 6.2.3, that identifies the CGS Depository Interest the subject of the Transaction

4

Volume

The number of CGS Depository Interests the subject of the Transaction

5

Price

The price per CGS Depository Interest of the Transaction

6

Trade cancellation indicator

If the Transaction is cancelled, a notation or code to identify that the Transaction is cancelled

7

Original trade date

If the Transaction is cancelled, the information in item 1 of this Table

8

Exception code

If the Transaction was executed:

Ÿ otherwise than by matching of Orders on an Order Book; or

Ÿ without Pre-Trade Information in relation to the Order being made available,

a unique code that identifies the exception in subrule 4.1.1(2) or 4.1.2(2) relied upon

Note: There is no penalty for this Rule.

Part 5.2 Delayed reporting

5.2.1      Delayed reporting—Large Principal Transaction

(1) In these Rules, Large Principal Transaction means:

(a)        a Transaction in which one party to the Transaction is the Participant acting as Principal and the other party to the Transaction is the Participant acting as agent for a client;

(b)       the consideration for the Transaction is:

(i)         $15,000,000 or more for Category A Equity Market Products;

(ii)       $10,000,000 or more for Category B Equity Market Products;

(iii)      $5,000,000 or more for Category C Equity Market Products; or

(iv)      $2,000,000 or more for Category D Equity Market Products or CGS Depository Interests; and

(c)        the Transaction is not effected to unwind, close out or liquidate (in whole or in part) a position established by a Transaction which meets the requirements in paragraphs (a) and (b).

(2) For the purposes of paragraph (1)(a), the client may be a Funds Manager acting on behalf of more than one fund.

(3) For the purposes of paragraph (1)(b):

(a)        Category A Equity Market Products means those Equity Market Products notified by ASX under its Operating Rules and in accordance with subrule (4);

(b)       Category B Equity Market Products means those Equity Market Products notified by ASX under its Operating Rules and in accordance with subrule (4);

(c)        Category C Equity Market Products means those Equity Market Products notified by ASX under its Operating Rules and in accordance with subrule (4); and

(d)       Category D Equity Market Products means all Equity Market Products that are not Category A, B or C Equity Market Products.

(4) For the purposes of subrule (3), the notification given by ASX:

(a)        must be published on its website and notified In Writing to other Market Operators; and

(b)       takes effect from the day following the notification. 

Note: There is no penalty for this Rule.

5.2.2      Dealings to which this Chapter does not apply

For the avoidance of doubt, this Chapter does not apply to:

(a)        a Participant transmitting an Order to another Participant for the purposes of the second Participant transmitting the Order to an Order Book or Crossing System;

(b)       primary market actions, including an issue or allotment of, application or subscription for a Relevant Product, or acceptance of an offer under an Off-Market Bid;

(c)        the delivery of a Relevant Product under a Securities Lending Arrangement; and

(d)       Exchange-Traded Fund Special Trades.

Note: There is no penalty for this Rule.


Chapter 5A: Regulatory Data

Part 5A.1      Application

5A.1.1   Application of Chapter

(1) This Chapter applies to:

(a)        from 28 October 2013, Equity Market Operators and CGS Market Operators;

(b)       from 28 July 2014, Equity Market Participants and CGS Market Participants.

(2) This Chapter applies to Orders and Transactions in:

(a)        Financial Products admitted to quotation on the ASX Market, other than Futures Market Contracts or Options Market Contracts;

(b)       CGS Depository Interests; and

(c)        Financial Products admitted to quotation on the Chi-X Market under the Operating Rules of Chi-X.

Note: There is no penalty for this Rule.

Part 5A.2      Requirement to record and provide Regulatory Data

5A.2.1   Participant to provide Regulatory Data with Orders and Trade Reports

(1) A Participant must provide Regulatory Data to a Market Operator in an Order transmitted to an Order Book of that Market Operator.

(2) A Participant must provide Regulatory Data to a Market Operator in a Trade Report made to that Market Operator, for each side of the Transaction for which the Participant acted as agent on behalf of a client, or as Principal.

(3) A Participant must not disclose the Regulatory Data it provides to a Market Operator under subrules (1) and (2) in connection with the Order or Trade Report other than:

(a)        to any of the following:

(i)         a person acting as agent on behalf of the Participant, to the extent there is a legitimate business reason for the person to have access to the Regulatory Data;

(ii)       the Market Operator to which the Regulatory Data is provided; or

(iii)      ASIC;

(b)       for the purposes of seeking legal advice; or

(c)        as otherwise required or permitted by law,

and must take reasonable steps to ensure that a person referred to in subparagraph (a)(i) does not disclose the Regulatory Data to any person other than a person referred to in paragraph (a), or in accordance with paragraphs (b) or (c).

Maximum penalty: $1,000,000

5A.2.2   Market Operator to record Regulatory Data

(1) A Market Operator must keep a record of Regulatory Data provided to it by a Participant in a record of:

(a)        a new Order that is received, or an existing Order that is amended, matched or cancelled, on an Order Book of the Market;

(b)       a Transaction on an Order Book of the Market; and

(c)        a Trade Report accepted by the Market Operator.

(2) A Market Operator must not use or disclose Regulatory Data referred to in subrule (1) other than by:

(a)        providing the Regulatory Data to ASIC;

(b)       disclosing the Regulatory Data to a person acting as agent for the Market Operator;

(c)        making available to a Participant, or a person acting as agent on behalf of the Participant, the Regulatory Data provided by that Participant; or

(d)       using or disclosing the Regulatory Data for a purpose that is otherwise required or permitted by law,

and must take reasonable steps to ensure that a person referred to in paragraph (b) does not use or disclose the Regulatory Data other than in accordance with paragraphs (a), (c) or (d).

Note: A Market Operator is required to provide Regulatory Data to ASIC under Chapter 7 of the ASIC Market Integrity Rules (ASX Market) 2010 and Chapter 7 of the ASIC Market Integrity Rules (Chi-X Australia Market) 2011.

Maximum penalty: $1,000,000

5A.2.3   Regulatory Data

(1) In these Rules, Regulatory Data means:

(a)        in relation to a Trade Report, the information set out in items 1 to 5 of the following Table; and

(b)       in relation to an Order transmitted to an Order Book and any Transaction resulting from that Order, the information set out in items 2 to 5 of the following Table.

(2) The information in items 3, 4 and 5 of the following Table does not need to be provided by a Participant if the Participant has taken all reasonable steps to determine the information and is unable to do so.

(3) ASIC may determine and publish on its website a notification of format or content requirements for a code, notation or number referred to in the following Table.

(4) Participants and Market Operators must provide or record Regulatory Data in Orders, Transactions and Trade Reports in accordance with requirements notified by ASIC under subrule (3) within the timeframe specified in the notification, if the timeframe specified in the notification is reasonable.

(5) Where a Participant provides a notation, code or number to identify information set out in items 1 to 5 of the following Table in an Order or Trade Report, it must take all reasonable steps to consistently provide the same code, notation or number to identify the same information in subsequent Orders or Trade Reports.

                                              

Item

Label

Regulatory Data

1

Execution venue

A code identifying the Market, Crossing System or other facility on which the Orders were matched or the Transaction was executed

2

Capacity of Participant

For each side (buy and/or sell) of the Order or Transaction on which the Participant is required to comply with subrule 5A.2.1(1) or (2), a notation to identify whether the Participant is acting :

(a) as Principal;

(b) as agent for a client; or

(c)  as both Principal and agent for a client,

in relation to the Order or Transaction

3

Origin of Order or Transaction

For each side (buy and/or sell) of the Order or Transaction on which the Participant acts as agent for a client, a unique notation, code or number used by the Participant to identify the person on whose instructions the Order is submitted or Transaction was executed

4

Intermediary ID

For each side (buy and/or sell) of the Order or Transaction on which:

(a) the Participant acts as agent for an AOP Client that is an AFSL holder; and

(b) the Participant has an arrangement with the AFSL holder under which the AFSL holder submits Trading Messages into the Participant’s system as intermediary for its own clients,

the AFSL number of the AFSL holder

5

Directed wholesale indicator

For each side (buy and/or sell) of the Order or Transaction on which:

(a) the Participant acts as agent for an AOP Client that is a Wholesale Client; and

(b) the Participant has an arrangement with the Wholesale Client under which the Wholesale Client submits Trading Messages into the Participant’s system with non-discretionary execution and routing instructions,

a unique notation or code to indicate this

Maximum penalty: $1,000,000


Chapter 6: Market Operators—Other obligations

Part 6.1A      Application of Chapter

6.1A.1   Application

(1) This Chapter applies to:

(a)        Equity Market Operators and CGS Market Operators;

(b)       Equity Market Participants and CGS Market Participants; and

(c)        Equity Market Products and CGS Depository Interests.

(2) In this Chapter, Relevant Products means Equity Market Products and CGS Depository Interests.

(3) In this Chapter, other Market Operator means:

(a)        in relation to an Equity Market Operator, each other Equity Market Operator;

(b)       in relation to a CGS Market Operator, each other CGS Market Operator;

(c)        in relation to a Relevant Product, the Market Operator of each other Market on which the Relevant Product is quoted.

Note: There is no penalty for this Rule.

Part 6.1 Trading Suspensions

6.1.1      Market Operator to notify of Trading Suspensions

(1) Subject to subrules (2) and (3) and Rule 6.2.1, a Market Operator (first Market Operator) must immediately notify each other Market Operator each time the first Market Operator:

(a)        places a Relevant Product into a Trading Suspension; and

(b)       lifts or removes a Trading Suspension on a Relevant Product.

(2) Where a technical problem (including a power outage) prevents the first Market Operator from making a notification referred to in paragraph (1)(a) or (b) immediately, the notification must be made to the other Market Operator without delay by another appropriate means.

(3) The first Market Operator is not required to comply with subrule (1) if the first Market Operator has placed the Relevant Product into a Trading Suspension, or lifted or removed the Trading Suspension, as a result of a notification from a Market Operator under paragraphs (1)(a) or (b).

Maximum penalty: $1,000,000

6.1.2      Market Operator to place Relevant Products into a Trading Suspension

(1) A Market Operator that receives a notification under paragraph 6.1.1(1)(a) must immediately place each Relevant Product the subject of the notification into a Trading Suspension on its Market.

(2) A Market Operator that places a Relevant Product into a Trading Suspension in accordance with subrule (1) may only lift or remove that Trading Suspension after the Market Operator receives a notification under paragraph 6.1.1(1)(b) in relation to the same Relevant Product.

Maximum penalty: $1,000,000

6.1.3      Market Operator to notify of system outages

A Market Operator must notify ASIC, other Market Operators and Participants immediately upon becoming aware of a technical problem (including a power outage) affecting a Market Operator’s trading, compliance monitoring and reporting systems that may interfere with the fair, orderly or transparent operation of any Market.

Maximum penalty: $1,000,000

Part 6.2 Information Sharing

6.2.1      Provision of information by electronic data feed to other Market Operators

(1) Subject to subrules (2) to (5) and Rule 6.1.3, a Market Operator (first Market Operator) must make available to each other Market Operator, through an electronic data feed and in a machine-readable format:

(a)        notifications referred to in subrule 2.2.2(2) and Rules 2.2.2B and 2.2.2C;

(b)       Pre-Trade Information referred to in subrule 4.1.2(1);

(c)        Post-Trade Information referred to in subrule 5.1.4(1);

(d)       notifications referred to in Rule 6.1.1; and

(e)        to the extent not covered by paragraph (d), information about the status of trading in each Relevant Product.

(2) Notwithstanding Rules 4.1.3 and 5.1.5, the first Market Operator must make available a data feed referred to in subrule (1) to each other Market Operator either at no cost or for an amount which is no greater than the direct, efficient, incremental costs of making the data feed available.

(3) Notwithstanding Rules 4.1.3 and 5.1.5, where the first Market Operator makes available a data feed referred to in subrule (1) in accordance with subrule (2), the first Market Operator may make that data feed available on terms that limit the purposes for which the other Market Operator may make use of the data feed to purposes directly related to:

(a)        in the case of a notification referred to in paragraph (1)(a):

(i)         determining the Extreme Trade Range for a Relevant Product;

(ii)       identifying an ETR Event in relation to a Relevant Product; and

(iii)      placing a Relevant Product into a Trading Pause, or lifting or removing that Trading Pause;

(b)       in the case of information referred to in paragraph (1)(b), (c) or (e), compliance with the other Market Operator’s obligations under Part 7.2 and Part 7.2A of the Act, including in the case of ASX, the obligation to monitor and enforce compliance with its Listing Rules; and

(c)        in the case of the notification referred to in paragraph (1)(d), placing a Relevant Product into a Trading Suspension, or lifting or removing that Trading Suspension, on the Market of the other Market Operator.

(4) A Market Operator need only make available a data feed referred to in subrule (1) in accordance with subrule (2) in relation to a Relevant Product to another Market Operator, within a reasonable time of receiving a notification from that Market Operator under subrule (5) in relation to that Relevant Product.

(5) For the purposes of subrule (4), the other Market Operator may give notice to the first Market Operator that the other Market Operator requires a data feed referred to in subrule (1) for a purpose referred to in subrule (3) in relation to a Relevant Product.

(6) A Market Operator need only make the notifications referred to in paragraph (1)(a) or (d) in relation to an Equity Market Product to another Market Operator, within a reasonable time of receiving a notification from that Market Operator under subrule (7) in relation to that Equity Market Product.

(7) For the purposes of subrule (6), if a Market Operator intends to trade an Equity Market Product on its Market and that product was not admitted to quotation by that Market Operator, the Market Operator must notify other Market Operators of that intention.

Maximum penalty: $1,000,000

6.2.2      Market Operator must assign unique identifiers to each Participant

(1) A Market Operator must assign each of its Participants a unique identifier for the purposes of identifying the Participant in records of Orders, Transactions and other Trading Messages relating to Relevant Products.

(2) Where a Participant is a Participant of more than one Market, each relevant Market Operator must assign the same identifier to the Participant under subrule (1).

Maximum penalty: $100,000

6.2.3      Market Operator must use unique symbols for Relevant Products

(1) ASX must assign each Equity Market Product admitted to quotation on the ASX Market a unique symbol for the purposes of identifying that Equity Market Product in records of Orders, Transactions and other Trading Messages on its Market.

(1A) Chi-X must assign each Equity Market Product admitted to quotation under the Operating Rules of the Chi-X Market a unique symbol for the purposes of identifying that Equity Market Product in records of Orders, Transactions and other Trading Messages on its Market.

(2) A Market Operator other than ASX must, for each Equity Market Product admitted to quotation on the ASX Market that is quoted on its Market, assign the same unique symbol assigned by ASX under subrule (1) to that Equity Market Product for the purposes of identifying that Equity Market Product in records of Orders, Transactions and other Trading Messages on its Market.

(2A) A Market Operator other than Chi-X must, for each Equity Market Product admitted to quotation under the Operating Rules of the Chi-X Market that is quoted on its Market, assign the same unique symbol assigned by Chi-X under subrule (1A) to that Equity Market Product for the purposes of identifying that Equity Market Product in records of Orders, Transactions and other Trading Messages on its Market.

(3) The Responsible Market Operator for CGS Depository Interests must assign each CGS Depository Interest a unique symbol for the purposes of identifying that CGS Depository Interest in records of Orders, Transactions and other Trading Messages on its Market.

(4) A CGS Market Operator other than the Responsible Market Operator for CGS Depository Interests must assign the same unique symbol assigned by the Responsible Market Operator under subrule (3) to that CGS Depository Interest for the purposes of identifying that CGS Depository Interest in records of Orders, Transactions and other Trading Messages on its Market.

Maximum penalty: $100,000

Part 6.3 Synchronised clocks

6.3.1      Market Operators to synchronise clocks

(1) A Market Operator must set the clock the Market Operator uses for recording the time and date in its trading, compliance monitoring and reporting systems so that it is synchronised to within 20 milliseconds of the UTC(AUS) maintained by the NMI. 

(2) Where a Market Operator relies on another person to provide any aspect of their trading, compliance monitoring or reporting systems that records the time and date, the Market Operator must take reasonable steps to ensure that person synchronises the clock used for that purpose to within 20 milliseconds of the UTC(AUS) maintained by the NMI.

Maximum penalty: $1,000,000

6.3.2      Market Operator to have arrangements for compliance

(1) A Market Operator must have in place adequate arrangements to ensure it complies with Rule 6.3.1, including arrangements for:

(a)        regularly monitoring the clock it uses for recording the time and date in its trading, compliance monitoring and reporting systems to ensure it remains synchronised; and

(b)       when required, re-setting the clock it uses for recording the time and date in its trading, compliance monitoring and reporting systems.

(2) Where a Market Operator relies on another person to provide any aspect of their trading, compliance monitoring and reporting systems, the Market Operator must take reasonable steps to ensure that person has in place arrangements referred to in subrule (1).

Maximum penalty: $100,000

Part 6.4 Tick Sizes

6.4.1      Market Operators to use standard Tick Sizes

(1) Subject to subrule (2), a Market Operator must not accept, display or queue Orders in an Order Book in Tick Sizes less than:

(a)        $0.01 for an Equity Market Product priced at equal to or greater than $2.00;

(b)       $0.005 for an Equity Market Product priced at equal to or greater than $0.10 and less than $2.00;

(c)        $0.001 for an Equity Market Product priced at less than $0.10; and

(d)       $0.001 for a CGS Depository Interest.

(2) Subrule (1) does not apply to an Order that, if executed, would result in a Block Trade, Large Portfolio Trade or, in the context of Rule 4.2.3, a Transaction  at the Best Mid-Point.

Maximum penalty: $1,000,000

Part 6.5 Material changes to Operating Rule procedures

6.5.1      Market Operator to notify material changes to Operating Rule Procedures

(1) Subject to subrule (2), a Market Operator must notify ASIC of a material change to the written procedures made under its Operating Rules, within a reasonable time before adopting the change.

(2) Where a Market Operator is required to make an urgent material change to the written procedures made under its Operating Rules, the Market Operator must notify ASIC of the change as soon as practicable after making the change.

Maximum penalty: $100,000


Chapter 7: Participants—Other obligations

Part 7.1A      Application

7.1A.1   Application of Chapter

(1) This Chapter applies to:

(a)        Equity Markets and CGS Markets;

(b)       Equity Market Participants and CGS Market Participants; and

(c)        Orders and Transactions in Equity Market Products and CGS Depository Interests.

(2) In this Chapter, Relevant Products means Equity Market Products and CGS Depository Interests.

Note: There is no penalty for this Rule

Part 7.1 Transactions to be under the Operating Rules of a Market Operator

7.1.1      Transactions to be under the Operating Rules of a Market Operator

A Participant must not enter into a Transaction in:

(a)        an Equity Market Product other than Under the Rules of an Equity Market;

(b)       a CGS Depository Interest other than Under the Rules of a CGS Market,

unless the Transaction is entered into pursuant to:

(c)        the terms of the Relevant Product, including a redemption; or

(d)       a primary market action, including an Off-Market Bid for Relevant Products or an issue, allotment or subscription of new Relevant Products.

Maximum penalty: $1,000,000

Part 7.2 Trading Suspensions

7.2.1      Prohibition on trading during Trading Suspensions

A Participant must not match an Order or execute a Transaction in a Relevant Product in circumstances where the Relevant Product is in a Trading Suspension on all Markets on which that Relevant Product is quoted.

Maximum penalty: $100,000

Part 7.3 Multiple Markets—Single trade confirmations

7.3.1      Multiple Markets—Participant may produce single trade confirmation

If a Participant is required to give a confirmation to a client in accordance with section 1017F of the Act, rule 3.4.1 of the ASIC Market Integrity Rules (ASX Market) 2010 or rule 3.4.1 of the ASIC Market Integrity Rules (Chi-X Australia Market) 2011 (the Confirmation) and enters into a Transaction on more than one Market for the purpose of completing a Client Order, the Participant may accumulate Transactions on different Markets which complete the Client Order on a single Confirmation and specify the volume weighted average price, rather than the price per unit, for all Transactions provided that:

(a)        the client authorised in writing the accumulation and price averaging of two or more Transactions in a Confirmation at or before the time the Order was placed; and

(b)       if requested by the client, the Participant gives to the client a statement of all the individual prices of the Relevant Products, which are accumulated and averaged in the Confirmation.

Maximum penalty: $20,000

Part 7.4 Managing confidential Order information

7.4.1      Protection of Order information

(1) A Participant must take reasonable steps to ensure its officers and employees do not use or disclose information about Orders received by the Participant or Transactions resulting from those Orders unless permitted or required under these Rules or the law.

(2) Subrule (1) does not apply to:

(a)        information about Orders or Transactions if that information is generally available;

(b)       Pre-Trade Information about Orders received by a Participant if the Pre- Trade Information has been made available by a Market Operator under Rule 4.1.2;

(c)        Pre-Trade Information about Orders received by a Participant if it is necessary to use or disclose that Pre-Trade Information to execute an Order (including disclosure of the Pre-Trade information in a routing instruction);

(d)        Post-Trade Information about Transactions resulting from Orders received by a Participant  if the Post-Trade Information has been made available by a Market Operator under Rule 5.1.4;

(e)        Post-Trade Information about Transactions resulting from Orders received by a Participant  if it is necessary to disclose that Post-Trade Information for confirmation or billing purposes;

(f)        information about Orders or Transactions disclosed to a person that:

(i)         maintains or services the Participant’s internal Order management system(s) or Crossing System(s) and who has agreed, in writing to limit its use of the Order and Transaction information disclosed to it to the purposes of that maintenance or service; or

(ii)       provides Administrative Services or analytical services to or for the Participant in relation to Orders and Transactions and who has agreed, in writing, to limit its use of the Order and Transaction information disclosed to it to the purposes of those Administrative Services or analytical services, as applicable. 

(3) For the purposes this Rule, “Administrative Services" includes Order routing or execution services.

Maximum penalty: $1,000,000

Part 7.5 Order incentives

7.5.1      Prohibition on Order incentives

(1) Subject to subrule (3) where a Participant handles or executes an Order as a result of an arrangement with another person (the other person) to direct Orders to the Participant, the Participant must not, indirectly or directly, make a cash payment to the other person for the opportunity to handle or execute those Orders if the cash payment leads to the net cost, calculated as set out in subrule (2), being less than the value of the Reported Price for the Transactions the subject of the Orders.

(2) The calculation of the net cost for the purposes of subrule (1) must be done as follows:

Net cost = (Commission less the dollar value of any cash payment to the other person) + Reported Price

where:

Commission means the dollar value of any payment received by the Participant (including commission received from a client of the other person) for the opportunity to handle or execute the other person’s Orders; and

Reported Price means the total dollar value of the Transaction or Transactions the subject of the other person’s Order or Orders as executed on the Market of a Market Operator or, if applicable, reported to a Market Operator under Rule 5.1.1, or if applicable, set out in a confirmation provided to the other person under Rule 3.4.2 of the ASIC Market Integrity Rules (ASX Market) 2010 or ASIC Market Integrity Rules (Chi-X Australia Market) 2011.

Note: Rule 3.4.2 of the ASIC Market Integrity Rules (ASX Market) 2010 and ASIC Market Integrity Rules (Chi-X Australia Market) 2011 permits a Participant to accumulate multiple Transactions on a single confirmation and specify a volume weighted average price for those Transactions in specified circumstances.

Maximum penalty: $100,000


 

Endnotes

Endnote 1 – Instrument history

 

Instrument number

Date of FRL registration

Date of commencement

Application, saving or transitional provisions

ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 (F2011L00681)

04/05/2011

Chapter 1, Rules 2.1.1(2), 2.1.4(2), 3.3.2, 4.1.3, 5.1.5 and 6.2.1 and Part 4.3: 05/05/2011

Remainder: 31/10/2011

-

ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2012 (No. 1) (F2012L02250)

26/11/2012

All Items of Schedule 1 other than Items [36] to [38], [44], [46], [110], [112], [115], [116], [118] and [145]: 27/11/12

Items [36] to [38], [44], [46], [110], [112], [115], [116], [118] and [145] of Schedule 1: 26/05/13

-

as amended by

 

 

 

ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2013 (No. 1) (F2013L00567)

27/03/2013

Schedule 2 (Items [1] and [2]): 28/3/2013

-

ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2013 (No. 1) (F2013L00567)

27/03/2013

Schedule 1 (Items [1] to [135]): 28/03/2013

-

ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2013 (No. 2) (F2013L01558)

09/08/2013

All Items of Schedule 1 other than items [4D], [8], [10] and [12]: 10/08/13

Item [8] of Schedule 1: 09/11/13

Items [4D], [10] and [12] of Schedule 1: 28/10/14

-

ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2014 (No. 1) (F2014L00233)

06/03/2014

07/03/2014

-

ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2014 (No.2) (F2014L00599)

23/05/2014

26/05/2014

 

ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2015 (No.1) (F2015L01694)

26/10/2015

27/10/2015

 

ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2017 (No. 1) (F2017L01467)

14/11/2017

15/11/2017

 

Endnote 2 -  Amendment history

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

Provision affected

How affected

Rule 1.1.3, Note 1

am. F2012L02250, Schedule 1, item [1]

Rule 1.1.3, Note 2

ad. F2012L02250, Schedule 1, item [2]

Paragraph 1.1.4(c)

rs. F2012L02250, Schedule 1, item [3]

Rule 1.4.3

am. F2012L02250, Schedule 1, items [4] to [35], [39] to [43], [45] and [47] to [49]; am. F2013L00567, Schedule 1, items [1] to [38]; am. F2012L02250, Schedule 1, items [36] to [38], [44] and [46]; am. F2013L01558, Schedule 1, items [1] to [4C] and [4E] to [4K]; am. F2014L00599, Schedule 1, items [1] to [18]; am. F2013L01558, Schedule 1, item [4D]; am. F2015L01694, Schedule 1, items [1] to [7] ; am. F2017L01467, Schedule 1, items [1] to [2]; ad. F2017L01467, Schedule 1, items [3] to [5]

Rule 1.4.4

ad. F2013L00567, Schedule 1, item [39]

Rule 1.4.5

ad. F2014L00599, Schedule 1, item [19]

Part 2.1A

ad. F2012L02250, Schedule 1, item [50]

Paragraph 2.1A.1(1)(a)

am. F2013L00567, Schedule 1, item [40]

Subrule 2.1A.1(2)

am. F2013L00567, Schedule 1, item [41]; am. F2014L00599, Schedule 1, item [20]

Subrule 2.1.1(1)

am. F2012L02250, Schedule 1, item [51]

Subrule 2.1.1(2)

am. F2012L02250, Schedule 1, items [52] and [53]

Subrule 2.1.1(4)

am. F2012L02250, Schedule 1, items [54] and [55]

Subrule 2.1.1(5)

am. F2012L02250, Schedule 1, item [56]

Subparagraph 2.1.1(5)(a)(i)

am. F2012L02250, Schedule 1, item [57]

Paragraph 2.1.1(5)(b)

rs. F2012L02250, Schedule 1, item [58]

Subparagraph 2.1.1(5)(b)(i)

am. F2013L00567, Schedule 1, item [42]

Subparagraph 2.1.1(5)(b)(ii)

am. F2014L00599, Schedule 1, item [21]

Rule 2.1.3

am. F2012L02250, Schedule 1, items [59] and [60]

Paragraph 2.1.4(1)(b)

am. F2012L02250, Schedule 1, item [61]

Paragraph 2.1.4(2)(a)

am. F2012L02250, Schedule 1, item [62]

Paragraph 2.1.4(2)(b)

am. F2012L02250, Schedule 1, item [63]

Subrule 2.1.4(4)

am. F2012L02250, Schedule 1, items [64] and [65]

Part 2.2 (heading)

am. F2012L02250, Schedule 1, item [66]

Rule 2.2.1 (heading)

am. F2012L02250, Schedule 1, items [67] and [68]

Rule 2.2.1

am. F2012L02250, Schedule 1, items [69] and [70]

Paragraph 2.2.1(a)

am. F2012L02250, Schedule 1, item [71]

Rule 2.2.1 (table column 2)

rep. F2012L02250, Schedule 1, item [72]

Rule 2.2.1 (heading to table column 3)

rs. F2012L02250, Schedule 1, item [72A]

Rule 2.2.1 (table column 3)

am. F2012L02250, Schedule 1, items [73] to [81]

Subrule 2.2.1(2)

ad. F2012L02250, Schedule 1, item [82]; am. F2014L00599, Schedule 1, item [22]

Subrule 2.2.1(3)

ad. F2013L00567, Schedule 1, item [43]

Subrule 2.2.1(4)

ad. F2014L00599, Schedule 1, item [23]

Rule 2.2.2

rs. F2012L02250, Schedule 1, item [83]

Subrule 2.2.2(4)

rs. F2013L00567, Schedule 1, item [44]; am. F2014L00599, Schedule 1, items [24] to [26]

Paragraph 2.2.4(4)(a)

am. F2015L01694, Schedule1, item [8]

Paragraph 2.2.4(4)(c)

am. F2015L01694, Schedule1, item [9]

Paragraph 2.2.2(4)(ca)

am. F2015L01694, Schedule1, item [10]

Paragraph 2.2.2(4)(cb)

ad. F2015L01694, Schedule1, item [11]

Rule 2.2.2, Note

rs. F2015L01694, Schedule 1, item [12]

Rule 2.2.2A

ad. F2012L02250, Schedule 1, item [83]

Rule 2.2.2B

ad. F2012L02250, Schedule 1, item [83]

Rule 2.2.2C

ad. F2012L02250, Schedule 1, item [83]

Rule 2.2.2C, Note

rs. F2015L01694, Schedule 1, item [13]

Rule 2.2.3 (heading)

am. F2012L02250, Schedule 1, item [84]

Rule 2.2.3

am. F2012L02250, Schedule 1, items [85] and [86]

Paragraph 2.2.3(a)

am. F2012L02250, Schedule 1, item [87]

Paragraph 2.2.3(c)

am. F2012L02250, Schedule 1, item [88]

Rule 2.2.4 (heading)

am. F2012L02250, Schedule 1, item [89]

Subrule 2.2.4(1)

am. F2012L02250, Schedule 1, items [90] and [91]

Paragraph 2.2.4(2)(a)

rs. F2012L02250, Schedule 1, item [92]

Paragraph 2.2.4(2)(ab)

ad. F2012L02250, Schedule 1, item [93]

Paragraph 2.2.4(2)(b)

am. F2012L02250, Schedule 1, items [94] and [95]

Paragraph 2.2.4(2)(c)

am. F2012L02250, Schedule 1, items [96] and [97]

Subrule 2.3.1(1)

am. F2012L02250, Schedule 1, item [98]

Paragraph 2.3.1(2)(a)

rs. F2012L02250, Schedule 1, item [99]

Paragraph 2.3.1(2)(b)

am. F2012L02250, Schedule 1, item [100]

Paragraph 2.3.1(2)(c)

am. F2012L02250, Schedule 1, item [101]

Paragraph 2.3.1(2)(d)

am. F2012L02250, Schedule 1, item [102]

Part 3.1A

ad. F2012L02250, Schedule 1, item [103]

Paragraph 3.1A.1(a)

am. F2013L00567, Schedule 1, item [45]

Paragraph 3.1A.1(b)

am. F2013L00567, Schedule 1, item [46]

Subrule 3.1.1(6)

am. F2012L02250, Schedule 1, items [104] to [106]; am. F2013L00567, Schedule 1, item [47]; rep. F2015L01694, Schedule 1, item [14]

Subrule 3.2.3(2)

am. F2012L02250, Schedule 1, items [107] to [108]; am. F2013L00567, Schedule 1, item [48]

Part 4.1A

ad. F2012L02250, Schedule 1, item [109]

Rule 4.1A.1

am. F2013L00567, Schedule 1, item [49]

Paragraph 4.1A.1(a)

am. F2013L00567, Schedule 1, item [50]

Paragraph 4.1A.1(b)

am. F2013L00567, Schedule 1, item [51]

Paragraph 4.1A.1(c)

am. F2013L00567, Schedule 1, item [52]

Subrule  4.1A.1(2)

ad. F2013L00567, Schedule 1, item [53]

Paragraph 4.1.1(2)(c)

am. F2012L02250, Schedule 1, item [110]

Subrule 4.1.1(3)

ad. F2012L02250, Schedule 1, item [111]

Paragraph 4.1.2(2)(c)

am. F2012L02250, Schedule 1, item [112]

Rule 4.1.4 (heading)

am. F2013L00567, Schedule 1, item [54]

Rule 4.1.4

am. F2013L00567, Schedule 1, item [55]

Rule 4.1.4A

ad. F2013L00567, Schedule 1, item [56]

Paragraph 4.1.5(1)(a)

am. F2013L00567, Schedule 1, item [57]

Rule 4.1.7

am. F2013L00567, Schedule 1, items [58] and [59]

Rule 4.1.8

ad. F2012L02250, Schedule 1, item [113]; am. F2013L00567, Schedule 1, item [60]

Paragraph 4.2.1(1)(a)

am. F2012L02250, Schedule 1, item [114]

Paragraph 4.2.1(1)(b)

am. F2013L00567, Schedule 1, item [61]

Paragraph 4.2.1(1)(c)

am. F2013L00567, Schedule 1, item [62]; rs. F2012L02250, Schedule 1, item [115]

Subrule 4.2.1(2)

am. F2013L00567, Schedule 1, item [63]

Subrule 4.2.1(3)

ad. F2012L02250, Schedule 1, item [116]

Subrule 4.2.1(4)

ad. F2012L02250, Schedule 1, item [116]

Paragraph 4.2.2(1)(a)

am. F2012L02250, Schedule 1, item [117]

Paragraph 4.2.2(1)(c)

am. F2013L00567, Schedule 1, item [64]

Rule 4.2.3

am. F2013L00567, Schedule 1, item [65]; rs. F2012L02250, Schedule 1, item [118]

Rule 4.2.4

am. F2013L00567, Schedule 1, items [66] and [67]

Paragraph 4.2.4(e)

am. F2013L00567, Schedule 1, item [68]

Rule 4.2.5

am. F2013L00567, Schedule 1, items [69] and [70]

Rule 4.2.6

am. F2013L00567, Schedule 1, item [71]

Paragraph 4.2.6(a)

am. F2013L00567, Schedule 1, items [72] and [73]

Chapter 4A

ad. F2013L01558, Schedule 1, item [5]

Part 4A.1

ad. F2013L01558, Schedule 1, item [5]

Rule 4A.1.1

ad. F2013L01558, Schedule 1, item [5]

Paragraph 4A.1.1(a)

am. F2015L01694, Schedule 1, item [15]

Part 4.3 -renumbered to Part 4A.2

F2013L01558, Schedule 1, item [6]

Rule 4.3.1 -renumbered to Rule 4A.2.1

F2013L01558, Schedule 1, item [7]

Rule 4A.2.1(1)(b)

am. F2013L01558, Schedule 1, item [8]; am. F2014L00233, Schedule 1, item [1]

Rule 4A.2.1(1)(ba)

ad. F2014L00233, Schedule 1, item [2]

Rule 4.3.2 - renumbered to Rule 4A.2.2

 

 

F2013L01558, Schedule 1, item [9]; rs. F2013L01558, Schedule 1, item [10]

Subparagraph 4.3.2(a)(ii)

(Note: renumbered to subparagraph 4A.2.2(a)(ii) by F2013L01558, Schedule 1, item [9])

am. F2013L00567, Schedule 1, item [74]

Rule 4.3.3 - renumbered to Rule 4A.2.3

F2013L01558, Schedule 1, item [11]; rep. F2013L01558, Schedule 1, item [11].

 

Rule 4.3.3 (table)

(Note: renumbered to Rule 4A.2.3 (table) by F2013L01558, Schedule 1, item [11])

am. F2013L00567, Schedule 1, item [75]

Part 4A.3

ad. F2013L01558, Schedule 1, item [13]

Subrule 4A.3.1(2), Table item 5

rs. F2014L00233, Schedule 1, item [3]

Note to Table in subrule 4A.3.1(2)

ad. F2014L00233, Schedule 1, item [4]

Part 4A.4

ad. F2013L01558, Schedule 1, item [13]

Part 4A.5

ad. F2013L01558, Schedule 1, item [13]

Part 4A.6

ad. F2013L01558, Schedule 1, item [13]

Part 5.1A

ad. F2012L02250, Schedule 1, item [119]

Rule 5.1A.1

am. F2013L00567, Schedule 1, item [76]

Paragraph 5.1A.1(a)

am. F2013L00567, Schedule 1, item [77]

Paragraph 5.1A.1(b)

am. F2013L00567, Schedule 1, item [78]

Paragraph 5.1A.1(c)

am. F2013L00567, Schedule 1, item [79], am. F2013L01558, Schedule 1, items [14] and [15]

Subrule  5.1A.1(2)

ad. F2013L00567, Schedule 1, item [80]

Subrule 5.1.1(1)

am. F2012L02250, Schedule 1, item [120]

Subrules 5.1.1(4A) and (4B)

ad. F2012L02250, Schedule 1, item [121]

Subrule 5.1.1(5)

am. F2013L00567, Schedule 1, item [81]

Paragraph 5.1.2(2)(a)

am. F2012L02250, Schedule 1, item [122]

Paragraphs 5.1.2(2)(b) and (c)

rs. F2012L02250, Schedule 1, item [123]

Subrule 5.1.2(3)

am. F2012L02250, Schedule 1, item [123A]

Rule 5.1.3

am. F2013L00567, Schedule 1, item [82]

Rule 5.1.4A

ad. F2012L02250, Schedule 1, item [124]; am. F2013L00567, Schedule 1, items [83] and [84]

Subrule 5.1.6(2), table item 2

am. F2012L02250, Schedule 1, item [125]; am. F2013L00567, Schedule 1, item [85]

Subrule 5.1.6(2), table item 3

am. F2012L02250, Schedule 1, item [126]

Subrule 5.1.6(2), table item 4

am. F2012L02250, Schedule 1, item [127]

Subrule 5.1.6(2), table item 5

am. F2012L02250, Schedule 1, item [128]; am. F2013L00567, Schedule 1, item [85]

Subrule 5.1.6(2), table item 6

am. F2012L02250, Schedule 1, item [129]; am. F2013L00567, Schedule 1, item [85]

Subrule 5.1.6(2), table item 7

am. F2012L02250, Schedule 1, item [130]

Subrule 5.1.6(2), Note

ad. F2012L02250, Schedule 1, item [131]; am. F2013L00567, Schedule 1, items [86] to [88]

Subrule 5.1.6(2), Note 2

ad. F2013L00567, Schedule 1, item [89]

Subrule 5.1.6(3)

ad. F2013L00567, Schedule 1, item [90]

Rule 5.1.6A

ad. F2013L01558, Schedule 1, item [16]

Rule 5.1.7 (heading)

am. F2013L00567, Schedule 1, item [91]

Paragraphs 5.1.7(a), (b) and (c)

am. F2013L00567, Schedule 1, item [92]

Rule 5.1.7A

ad. F2013L00567, Schedule 1, item [93]

Part 5.2 (heading)

am. F2012L02250, Schedule 1, item [132]

Rule 5.2.1 (heading)

am. F2012L02250, Schedule 1, item [133]

Rule 5.2.1

am. F2012L02250, Schedule 1, item [134]

Subparagraph 5.2.1(1)(b)(iv)

am. F2013L00567, Schedule 1, item [94]

Paragraph 5.2.1(4)(a)

am. F2012L02250, Schedule 1, item [135]

Paragraphs 5.2.2(a) and (b)

am. F2013L00567, Schedule 1, item [95]

Chapter 5A

ad. F2012L02250, Schedule 1, item [136]

Paragraph 5A.1.1(1)(a)

am. F2013L00567, Schedule 1, item [96]

Paragraph 5A.1.1(1)(b)

am. F2013L00567, Schedule 1, item [97]; am. F2014L00233, Schedule 1, item [5]

Subrule 5A.1.1(2)

rs. F2013L00567, Schedule 1, item [98]

Paragraph 5A.1.1(2)(a)

am. F2015L01694, Schedule 1, item [16]

Paragraph 5A.1.1(2)(b)

am. F2015L01694, Schedule 1, item [17]

Paragraph 5A.1.1(2)(c)

ad. F2015L01694, Schedule 1, item [18]

Subrule 5A.2.2(2)

am. F2013L00567, Schedule 1, item [99]

Rule 5A.2.5 (table item 2)

am. F2013L00567, Schedule 1, item [100]

Part 6.1A

ad. F2012L02250, Schedule 1, item [137]

Rule 6.1A.1

am. F2013L00567, Schedule 1, item [101]

Paragraph 6.1A.1(a)

am. F2013L00567, Schedule 1, item [102]

Paragraph 6.1A.1(b)

am. F2013L00567, Schedule 1, item [103]

Paragraph 6.1A.1(c)

am. F2013L00567, Schedule 1, item [104]

Subrule 6.1A.1(2)

ad. F2013L00567, Schedule 1, item [105]

Subrule 6.1A.1(3)

ad. F2013L00567, Schedule 1, item [105]

Subrule 6.1.1(1)

am. F2013L00567, Schedule 1, items [106] and [107]

Paragraph 6.1.1(1)(a)

am. F2013L00567, Schedule 1, item [108]

Paragraph 6.1.1(1)(b)

am. F2013L00567, Schedule 1, item [108]

Subrule 6.1.1(3)

ad. F2013L00567, Schedule 1, item [109]

Rule 6.1.2 (heading)

am. F2013L00567, Schedule 1, item [110]

Subrule 6.1.2(1)

am. F2013L00567, Schedule 1, item [111]

Subrule 6.1.2(2)

am. F2013L00567, Schedule 1, items [112] and [113]

Subrule 6.2.1(1)

am. F2013L00567, Schedule 1, item [114]

Paragraph 6.2.1(1)(a)

am. F2012L02250, Schedule 1, item [138]

Paragraph 6.2.1(1)(e)

am. F2013L00567, Schedule 1, item [115]

Subrule 6.2.1(3)

am. F2013L00567, Schedule 1, item [116]

Paragraph 6.2.1(3)(a)

rs. F2012L02250, Schedule 1, item [139]

Paragraph 6.2.1(3)(b)

am. F2012L02250, Schedule 1, item [140]

Subrule 6.2.1(4)

am. F2013L00567, Schedule 1, items [117] and [118]

Subrule 6.2.1.(5)

am. F2013L00567, Schedule 1, item [119]

Subrule 6.2.1(6)

am. F2012L02250, Schedule 1, item [141]; am. F2015L01694, Schedule 1, item [19]

Subrule 6.2.1(7)

am. F2012L02250, Schedule 1, item [142]; rs. F2015L01694, Schedule 1, item [20]

Subrule 6.2.2(1)

am. F2013L00567, Schedule 1, item [120]

Rule 6.2.3 (heading)

am. F2013L00567, Schedule 1, item [121]

Subrule 6.2.3(1)

am. F2012L02250, Schedule 1, item [143]; am. F2015L01694, Schedule 1, item [21]

Subrule 6.2.3(1A)

ad. F2015L01694, Schedule 1, item [22]

Subrule 6.2.3(2)

am. F2012L02250, Schedule 1, item [144]; am. F2015L01694, Schedule 1, item [23]

Subrule 6.2.3(2A)

ad. F2015L01694, Schedule 1, item [24]

Subrule 6.2.3(3)

am. F2013L00567, Schedule 1, item [122]

Subrule 6.2.3(4)

am. F2013L00567, Schedule 1, item [122]

Paragraph 6.4.1(1)(b)

am. F2013L00567, Schedule 1, item [123]

Paragraph 6.4.1(1)(c)

am. F2013L00567, Schedule 1, item [124]

Paragraph 6.4.1(1)(d)

ad. F2013L00567, Schedule 1, item [125]

Subrule 6.4.1(2)

am. F2012L02250, Schedule 1, item [145]

Part 7.1A

ad. F2012L02250, Schedule 1, item [146]

Rule 7.1A.1

am. F2013L00567, Schedule 1, item [126]

Paragraph 7.1A.1(a)

am. F2013L00567, Schedule 1, item [127]

Paragraph 7.1A.1(b)

am. F2013L00567, Schedule 1, item [128]

Paragraph 7.1A.1(c)

am. F2013L00567, Schedule 1, item [129]

Subrule 7.1A.1(2)

ad. F2013L00567, Schedule 1, item [130]

Rule 7.1.1

rs. F2013L00567, Schedule 1, item [131]

Rule 7.1.2

am. F2013L00567, Schedule 1, items [132] to [134]

Rule 7.3.1(b)

am. F2013L00567, Schedule 1, item [135]

Part 7.4

ad. F2013L01558, Schedule 1, item [17]

Subrule 7.4.1(4)

rep. F2015L01694, Schedule 1, item [25]

Part 7.5

ad. F2013L01558, Schedule 1, item [17]

Subrule 7.5.1(3)

rep. F2015L01694, Schedule 1, item [26]