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ASIC Corporations (Short Selling) Amendment Instrument 2022/968

Authoritative Version
  • - F2022L01582
  • In force - Latest Version
Determinations/Financial (Other) as made
This instrument amends certain sections of the ASIC Corporations (Short Selling) Instrument 2018/745.
Administered by: Treasury
Registered 06 Dec 2022
Tabling HistoryDate
Tabled HR15-Dec-2022
Table of contents.

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ASIC Corporations (Short Selling) Amendment Instrument 2022/968

I, Calissa Aldridge, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

 

Date    2 December 2022

 

 

 

Calissa Aldridge

 



Part 1—Preliminary

1        Name of legislative instrument

This is the ASIC Corporations (Short Selling) Amendment Instrument 2022/968.

2        Commencement

This instrument commences on the day after it is registered on the Federal Register of Legislation.

Note:    The register may be accessed at www.legislation.gov.au.

3        Authority

This instrument is made under subsection 1020F(1) of the Corporations Act 2001.

4        Schedules

Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.


Schedule 1—Amendments

ASIC Corporations (Short Selling) Instrument 2018/745

1        Section 5 (notional paragraphs 1020B(4A)(b) and (4D)(b))

Omit “Chi-X Australia Pty Ltd”, substitute “Cboe Australia Pty Ltd”.

2        Section 5 (notional subsection 1020B(4D), definition of ETF market maker)

Omit “Chi-X Australia Pty Ltd” (wherever occurring), substitute “Cboe Australia Pty Ltd”.

3        Section 6 (notional paragraph 1020B(5A)(c)(ii))

Omit “is”.

4        Section 6 (at the end of notional subparagraph 1020B(5A)(c)(ii))

Insert “or”.

5        Section 6 (after notional subparagraph 1020B(5A)(c)(ii))

Insert:

“(iii)  an interest in an approved ETF, where:

(A)    the hedged product is an approved ETO in relation to that ETF; and

(B)    the market maker has been appointed to make a market in the approved ETO by the operator of the market that the approved ETO is admitted to trading on;”.

6        Section 6 (notional paragraph 1020B(5B)(b))

After “STW” (first occurring), insert “or an approved ETF”.

7        Section 6 (notional paragraph 1020B(5B)(b))

After “STW” (second and third occurring), insert “or the approved ETF”.

8        Section 6 (notional paragraph 1020B(5C))

After “sale of the shorted product”, insert “in reliance on subsection (5A)”.

9        Section 6 (notional paragraph 1020B(5C)(d))

Omit the paragraph, substitute:

“(d)   for a shorted product that is an interest in STW or an approved ETF—have acquired or applied for interests in STW or the approved ETF.”.

10      Section 6 (notional subsection 1020B(5J))

After “In subsections (5A) to (5H):”, insert:

approved ETF means each of:

(a)     the Vanguard MSCI Index International Shares ETF; and

(b)     the iShares Core S&P 500 ETF; and

(c)     the Betashares NASDAQ 100 ETF.

approved ETO means an exchange traded option that is exercisable:

(a)   only on one specific date; and

(b)  in respect of an interest in an underlying approved ETF.

ETO (or exchange traded option) means an option registered with:

(a)     ASX Clear Pty Limited; or

(b)     ASX Clear (Futures) Pty Limited.

ETF (or exchange traded fund) has the same meaning as in subsection 1020B(4D).”.

11      Subsection 8(4) (definition of exchange traded option)

Omit the definition, substitute:

exchange traded option has the same meaning as in subsection 1020B(5J) of the Act.

Note: Subsection 1020B(5J) of the Act is notionally inserted by section 6 of this instrument.”.

12      Section 11 (notes at the end of notional subsections 1020B(7B) and (7H))

Omit the notes.

13      Section 11 (notional subparagraphs 1020B(7C)(a)(ii) and (7D)(a)(iii))

After “including payment of”, insert “(or an agreement to pay)”.

14      Section 11 (notional paragraph 1020B(7F)(b), paragraph (b) of the definition of public offer)

After “listed corporation”, insert “or a listed scheme”.

15        Section 11 (notional paragraph 1020B(7H)(b))

After “have an entitlement to be issued with”, insert “or transferred”.

16        Subsection 13(2)

Omit “Chi-X Australia Pty Ltd”, substitute “Cboe Australia Pty Ltd”.