Australian Securities and Investments Commission Market Integrity Rules (Chi-X Australia Market) 2011 (Cth)

ASIC Market Integrity Rules (Chi-X Australia Market) 2011

About this compilation
Compilation No. 13
This is a compilation of ASIC Market Integrity Rules (Chi-X Australia Market) 2011 as in force on 14 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

Part 1.1Preliminary

1.1.1Enabling legislation

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

1.1.2Title

This instrument is ASIC Market Integrity Rules (Chi-X Australia Market) 2011.

1.1.3Commencement

This instrument commences the day after the instrument is registered under the Legislative Instruments Act 2003.
Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, section 4 (definition of register). The FRLI may be accessed at of these Rules
These Rules apply to:
(a)
the activities or conduct of the Chi-X Market;
(b)
the activities or conduct of persons in relation to the Chi-X Market;
(c)
the activities or conduct of persons in relation to Financial Products traded on the Chi-X Market.
Note: There is no penalty for this Rule.
1.1.5Entities that must comply with these Rules
The following entities must comply with these Rules:
(a)
the Market Operator;
(b)
Market Participants; and
(c)
Other Regulated Entities,
as specified in each Rule.
Note: There is no penalty for this Rule.
1.1.6Conduct 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.
1.1.7State 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 1.2Waiver
1.2.1Waiver 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.
1.2.2Compliance 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
1.2.3Period 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.
1.2.4Register
(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 1.3Notice, notification and service of documents
1.3.1Market Participant to have email
A Market 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.
1.3.2Methods 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;
(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 1.4Interpretation
1.4.1References to time
In these Rules a reference to time is to the time in Sydney, Australia.
Note: There is no penalty for this Rule.
1.4.2Words and expressions defined in the Corporations Act
Words and expressions defined in the Corporations 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.
1.4.3Definitions
“Accreditation Examination” means an examination approved by ASIC in accordance with subrule 2.4.7(4) or 2.4.8(4).
“Accredited Adviser” means:
(a)
a Level One Accredited Derivatives Adviser;
(b)
a Level Two Accredited Derivatives Adviser.
“AFSL” means an Australian financial services licence granted under section 913B of the Corporations Act.
“AOP Annual Notification” has the meaning given by subrule 5.6.8B(1).
“AOP Annual Review” has the meaning given by Rule 5.6.8A.
“AOP Annual Review Date” means 1 November each calendar year.
“AOP Initial Certification” has the meaning given by Rule 5.6.6.
“AOP Material Change Review” has the meaning given by subrule 5.6.8(1).
“Approved Ratings Agency” means a credit rating agency holding an AFSL authorising it to give general advice by issuing a credit rating.
“AQUA Product” means a Financial Product which is admitted to trading status as an AQUA product on the ASX Market.
“ASIC” means the Australian Securities and Investments Commission.
“ASIC Act” means the Australian Securities and Investments Commission Act 2001 as amended from time to time.
“ASX” means ASX Limited (ACN 008 624 691).
“ASX Listing Rules” means the Listing Rules of ASX.
“ASX Market” means the market for Financial Products operated by ASX.
“ASX Market Integrity Rules” means the ASIC Market Integrity Rules (ASX Market) 2010, as amended from time to time.
“ASX Participant” means a participant in the ASX Market admitted under the Operating Rules of the ASX Market.
“Australian ADI” has the meaning given by section 9 of the Corporations Act.
“Authorised Person” means a person who:
(a)
is either:
(i)
a client of a Market Participant;
(ii)
an agent of a client of a Market Participant; or
(iii)
a Representative of the Market Participant; and
(b)
is permitted by a Market Participant to submit orders into the Market Participant’s system.
“Automated Client Order Processing” is the Automated Order Processing of an order submitted by an Authorised Person into a Market Participant’s system.
“Automated Order Processing” means the process by which orders are registered in a Market Participant’s system and, if accepted for submission into a Trading Platform by the Market Participant, submitted as corresponding Trading Messages without being keyed or rekeyed by a DTR.
“Automated Order Processing Requirements” means the requirements of Part 5.6.
“Bid” means, in relation to a Cash Market Product, a price and quantity of the Cash Market Product to be purchased.
“Bid Class” means, in relation to a Takeover Bid, the class of Financial Products included in the bid class of Financial Products under the Corporations Act.
“Bid Period”:
(a)
for an Off-Market Bid, means the period that commences when the Bidder’s statement is given to the Target and ends:
(i)
1 month later if no offers are made under the bid; or
(ii)
at the end of the Offer Period;
(b)
for a Market Bid, starts when the bid is announced to the Relevant Financial Market by the person acting on behalf of the Bidder and ends at the end of the Offer Period; and
(c)
for a Scheme, starts when the announcement of intention to propose a Scheme is first received by the Relevant Financial Market until the date on which the Scheme is effected.
“Bidder” means:
(a)
in relation to an Off-Market Bid or Market Bid, a bidder within the meaning of the Corporations Act and, in respect of an Issuer incorporated or established outside Australia, the equivalent entity; and
(b)
in relation to a Scheme, the entity or entities in a similar position to a bidder.
“Business Day” means a day other than a Saturday, Sunday, New Year’s Day, Good Friday, Easter Monday, Christmas Day or Boxing Day.
“Cash Market Product” means an Equity Market Product and an Investment Product.
“Cash Market Transaction” means a transaction between Market Participants for one or more Cash Market Products.
“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 Australia” means Chi-X Australia Pty Ltd (ACN 129 584 667).
“Chi-X Market” means the market operated by the Market Operator under Australian Market Licence (Chi-X Australia Pty Ltd) 2011.
“Clearing Facility” means, in relation to a Market Transaction, the clearing and settlement facility, within the meaning of section 761A of the Corporations Act, through which the Market Transaction has been or will be cleared.
“Clearing Obligation” means an obligation imposed on a Clearing Participant under the Clearing Rules.
“Clearing Participant” means a person admitted as a participant under the Clearing Rules.
“Clearing Rules” means:
(a)
in relation to a particular Clearing Facility, the operating rules, procedures, practices, directions, decisions and requirements of that Clearing Facility;
(b)
in relation to a particular Clearing Participant, the rules of the Clearing Facility to which that Clearing Participant is subject.
“Client Agreement” means an agreement between the Market Participant and a client, entered into under Rule 3.1.8 or 3.1.9.
“Commencement Date” means the date this instrument commences, as set out in Rule 1.1.3.
“Company Announcements Office” means the office of ASX that processes announcements regarding Listed Entities for release to the ASX Market.
“Compensation Arrangements” has the meaning given by section 880B of the Corporations Act.
“Competition Market Integrity Rules” means the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 as amended from time to time.
“Compliance Education” means education or professional development directly related to compliance obligations, policies, procedures and ethics with specific relevance to the obligations of the Market Participant and the Responsible Executive under these Rules, the Market Operating Rules, the Clearing Rules and the Settlement Rules.
“Compliance Education Requirements” means the successful completion of 8 hours of Compliance Education during the period from 1 July each year to 30 June in the following year.
“Compliance Manager” means a person who has responsibility for all or part of the compliance function in the business of the Market Participant in connection with the Chi-X Market.
“Conditional Sale” means a sale which is subject to fulfilment of conditions and made on a market declared by the Market Operator to be a conditional market.
“Continuing Professional Education Requirements” means the requirements of Rule 2.4.21.
“Continuous Trading Period” means the session on the Trading Platform during which the following parameters apply:
(a)
Bids and Offers may be entered, amended or cancelled in the Trading Platform;
(b)
Bids and Offers are matched In Price/Time Priority on a continuous basis; and
(c)
allowable trades may be reported.
“Controlled Trust” means a trust in relation to which an Employee, Immediate Family of an Employee or a company controlled by an Employee:
(a)
is a trustee;
(b)
holds more than 50% of the whole beneficial interest; or
(c)
controls the trust.
“Controller” means:
(a)
a person holding 20% or more of the total votes attached to voting shares of a Market Participant or a person who, together with Related Parties, holds 20% or more of such votes; or
(b)
a person who has the power to control the Market Participant, whether that power is direct or indirect or is, or can be, exercised as a result of, by means of, in breach of, or by revocation of, trusts, relevant agreements and practices, or any of them, and whether or not they are enforceable,
but for the purposes of Part 5.2 does not include an entity if the entity, a holding company of the entity, or a subsidiary of the entity through which the entity has an interest in the Market Participant is an entity listed on the Market or with any other Australian market licensee or a Recognised Overseas Stock Exchange.
“Corporations Act” means the Corporations Act 2001 (Cth).
“Cross” or “Crossing”, means a transaction in respect of which a Market Participant acts:
(a)
on behalf of both buying and selling clients to that transaction; or
(b)
on behalf of a buying or selling client on one side of that transaction and as Principal on the other side.
“Crossing System” means any automated service provided by a Market Participant which matches or executes client Orders with Orders of:
(a)
the Market Participant;
(b)
other clients of the Market Participant; or
(c)
any other person whose Orders access the automated service,
otherwise than on an Order Book.
“Dealing Rules” means the Rules and the Market Operating Rules that govern the submission of orders and the execution and reporting of Market Transactions on a Trading Platform.
“Derivatives Market Contract” means a Futures Market Contract, an Options Market Contract and any other contract that ASX authorises for trading on the ASX Market as a Derivatives Market Contract.
“DTR” means a Representative of the Market Participant who has been authorised by the Market Participant to submit Trading Messages to the Trading Platform on behalf of the Market Participant and who meets the criteria set out in Rule 2.5.5.
“DTR identifier” means a unique code, allocated by the Market Participant under Rule 2.5.6, that identifies a DTR.
“Employee” in relation to a Market Participant includes a director, employee, officer, agent, representative, consultant or adviser of that Market Participant, or an independent contractor who acts for or by arrangement with a Market Participant.
“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 Corporations Act.
“Equity Market Operator” means an entity that is licensed under subsection 795B(1) of the Corporations Act to operate 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; or
(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); or
(d)
a CHESS Depository Interest,
admitted to quotation on ASX and able to be traded on the Chi-X Market.
“Equity Market Transaction” means a transaction between Market Participants for one or more Equity Market Products.
“Equity Securities” means:
(a)
shares in a body corporate or an unincorporated body other than redeemable preference shares which are Loan Securities in accordance with paragraph (c) of the definition of Loan Securities; or
(b)
interests in a managed investment scheme, except those referred to in paragraph (d) of the definition of Loan Securities; or
(c)
renounceable and non-renounceable rights to subscribe for Securities other than Loan Securities; or
(d)
options over unissued Securities other than Loan Securities; or
(e)
convertible notes; or
(f)
any Securities which are determined by the operator of the Relevant Financial Market to be Equity Securities,
but does not include Options Market Contracts, or Securities determined to be Loan Securities by the operator of the Relevant Financial Market.
“ETF” means a Managed Fund:
(a)
which is listed on the ASX Market or admitted to trading status as an AQUA Product or which is admitted to quotation as an Investment Product (MIS) on the Chi-X Market;
(b)
with power and approval to continuously issue and have quoted on the ASX or Chi-X Market, Equity Securities in the Managed Fund;
(c)
which provides for the issue of new Equity Securities in return for the subscriber transferring to the Managed Fund a portfolio of Securities, cash, or a combination of Securities and cash; and
(d)
for which the price of the Financial Product, index, foreign or Australian currency, commodity or other point of reference for determining the value of the Equity Securities is continuously disclosed or can be immediately ascertained.
“ETF Security” means a Financial Product issued by or provided pursuant to an ETF.
“Family Company” 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” 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 Corporations Act.
“Financial Product” has the meaning given by Division 3 of Part 7.1 of the Corporations Act.
“Financial Product Advice” has the meaning given by section 766B of the Corporations Act.
“Foreign Quoted Shares”, in relation to an Investment Product (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.
“Futures Market Contract” means a contract on the terms of a Futures Series.
“Futures Series” means a set of contractual terms on which futures contracts are authorised for trading by the operator of the Relevant Financial Market.
“Immediate Family” in relation to a person, means that person’s spouse and any non-adult children.
“In Price/Time Priority” means, in respect of Bids and Offers, in accordance with the following order:
(a)
Bids entered into a Trading Platform are ranked from highest to lowest priced and Offers are ranked from lowest to highest priced;

(b)
Bids entered into a Trading Platform are ranked above Bids entered later at the same price and Offers entered into a Trading Platform are ranked above Offers entered later at the same price; and
(c)
an Order withdrawn from a Trading Platform loses its priority under (a) and (b) and, if re-entered, will be treated as a new Order.
“Investment Product” means an Investment Product (MIS), an Investment Product (Transferable Custody Receipt) and an Investment Product (Warrant).
“Investment Product (MIS)”means an ETF Security admitted to quotation on the Chi-X Market.
“Investment Product (Transferable Custody Receipt)”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 Quoted 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.
“Investment Product (Warrant)” means a Warrant admitted to quotation on the Chi-X Market.
“Investment Product Issuer” means an entity which issues, distributes or makes available Investment Products and which has been registered by the Market Operator as a product issuer under the Operating Rules.
“Issuer” means, in relation to a Cash Market Product, the legal entity which issues the Cash Market Product.
“Level One Accredited Derivatives Adviser” means a person who has been accredited under Rule 2.4.7 and whose accreditation is current.
“Level Two Accredited Derivatives Adviser” means a person who has been accredited under Rule 2.4.8 and whose accreditation is current.
“Listed Entity” means an entity included in the Official List.
“Listing Rules” has the meaning given by section 761A of the Corporations Act.
“Loan Securities” means:
(a)
debentures, stocks or bonds issued or proposed to be issued by a government; or
(b)
debentures of a body corporate or an unincorporated body; or
(c)
redeemable preference shares which have a fixed and certain date for redemption, other than shares having a participating entitlement to rights or options referred to in paragraphs (c) and (d) of the definition of Equity Securities; or
(d)
interests in a managed investment scheme, relating to a financial or business undertaking or scheme, common enterprise or investment contract, the trustee or representative or responsible entity of which only invests in or acquires one or more of Loan Securities, mortgages and cash; or
(e)
any Securities which are determined by the operator of the Relevant Financial Market to be Loan Securities,
but does not include Options Market Contracts, or Securities determined to be Equity Securities by the operator of the Relevant Financial Market.
“Managed Discretionary Account” means a service with the following features:
(a)
a person makes client contributions;
(b)
the client agrees with the Market Participant that the client’s portfolio assets will:
(i)
be managed by the Market Participant at its discretion, subject to any limitation that may be agreed, for purposes that include investment;
(ii)
not be pooled with property that is not the client’s portfolio assets to enable an investment to be made or made on more favourable terms; and
(iii)
be held by the client unless a beneficial interest but not a legal interest in them will be held by the client; and
(c)
the client and the Market Participant intend that the Market Participant will use client contributions of the client to generate a financial return or other benefit from the Market Participant’s investment expertise.
“Managed Fund” means:
(a)
a managed investment scheme which is a registered managed investment scheme pursuant to section 601EB of the Corporations Act or a managed investment scheme which ASIC has exempted from those registration requirements; or
(b)
a foreign company which has the economic features of a managed investment scheme, namely:
(i)
investors contribute money or money’s worth to acquire rights to benefits produced by the collective investment;
(ii)
contributions of investors are to be pooled, or used in a common enterprise, to produce financial benefits, or benefits consisting of rights or interests in property, for investors holding Financial Products in the collective investment; and
(iii)
investors holding Financial Products issued in the collective investment do not have day to day control over the operation of the collective investment.
“Market Bid” means a market bid within the meaning of the Corporations Act and, in respect of an Issuer incorporated or established outside Australia, any similar form of bid.
“Market Maker” means a Market Participant registered by the Market Operator as a market maker, which has an obligation to make a market in assigned classes of Investment Products.
“Market Operating Rules” means the Operating Rules of the Chi-X Market.
“Market Operator” means Chi-X Australia.
“Market Participant” means a participant in the Chi-X Market admitted under the Market Operating Rules.
“Market Transaction” means a transaction for one or more Cash Market Products, entered into on a Trading Platform or reported to the Market Operator under the Market Operating Rules.
“NGF” has the meaning given by section 880B of the Corporations Act.
“Off-Market Bid” means an off-market bid within the meaning of the Corporations Act and in respect of an Issuer incorporated or established outside Australia, any similar form of bid.
“Offer” means, in relation to a Cash Market Product, a price and quantity of the Cash Market Products to be sold.
“Offer Period” means:
(a)
in relation to a Takeover Bid, the period for which offers under the bid remain open; or
(b)
in relation to a Scheme, the period from the date an announcement of intention to propose a Scheme is first received by the Relevant Financial Market until the date on which the Scheme is effected.
“Official List” means the official list of the ASX Market.
“Official Quotation”, in relation to Financial Products, means admitted to quotation by ASX under the ASX Listing Rules.
“On-Market”, in relation to a transaction for the purpose of Chapter 6 of the Corporations Act, means a transaction by a Market Participant for the acquisition of Equity Market Products which is:
(a)
effected during Trading Hours by matching of Trading Messages on a Trading Platform (other than a Crossing) in accordance with the Market Operating Rules; or
(b)
a Crossing effected during Trading Hours in accordance with the Market Operating Rules if:
(i)
the Crossing is arranged solely by a Market Participant and is not prearranged between the principals to the transaction; and
(ii)
each principal is indifferent as to the identity of the other,
where:
(iii)
the expression “principal” includes the principal’s associates, advisers and advisers’ associates; and
(iv)
the expression “adviser” does not include a person only providing services to the principal as a broker,
but does not include:
(c)
Special Crossings; and
(d)
Crossings (other than Special Crossings) that are effected outside of Trading Hours.
“Open Interface” means the electronic protocol and message structure used to provide a mechanism for Market Participants to access a Trading Platform which enables a Market Participant to submit Trading Messages.
“Open Interface Device” means a logical connection or session with the gateway using the Open Interface.
“Operating Rules” has the meaning given by section 761A of the Corporations Act.
“Option Series” means a set of contractual terms on which options are authorised for trading by ASX on the ASX Market.
“Options Market Contract” means a contract on the terms of an Option Series.
“Options Market Transaction” means a Market Transaction for one or more Options Market Contracts.
“Order” means, in relation to Cash Market Products, an instruction to purchase or sell Cash Market Products, or an instruction to amend or cancel a prior instruction to purchase or sell Cash Market Products. “Order Book” means an electronic list of Orders, maintained by or on behalf of an Equity Market Operator, on which those Orders are matched with other Orders in the same list.
“Other Regulated Entities” means entities prescribed by regulations made for the purposes of paragraph 798H(1)(c) of the Corporations Act, that must comply with these Rules.
“Own Account” has the meaning given by Rule 5.1.1.
“Partly Paid Security” means an Equity Market Product for which the holder may be liable to pay a call or instalment in accordance with the terms of issue and for which an amount remains unpaid, but does not include an Equity Market Product issued by a no liability company.
“Post-Trading Administration Period” means the session on the Trading Platform during which the following parameters apply:
(a)
no Bids and Offers may be entered or amended;
(b)
Bids and Offers remaining from the previous session may be cancelled;
(c)
no Bids or Offers will be automatically matched;
(d)
manual procedures for matching In Price/Time Priority apply; and
(e)
allowable trades may be reported.
“Prescribed Person” means, in relation to a Market Participant:
(a)
an Employee, a director, a partner, or Responsible Executive of the Market Participant;
(b)
a Controller of the Market Participant or a Related Body Corporate of that Controller;
(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 Market 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.
“Principal”, in the context of “as Principal” has the meaning given to that term in Rule 3.2.5.
“Principal Trader” means a Market Participant with Trading Permission which limits it to trading on its own behalf.
“Recognised Overseas Stock Exchange” means a Recognised Stock Exchange whose principal place of business is located outside Australia.
“Recognised Stock Exchange” has the meaning given by the Operating Rules of ASX.
“Related Body Corporate” has the meaning given by section 50 of the Corporations Act.
“Related Party”:
(a)
in relation to a body corporate:
(i)
has the meaning given by section 228 of the Corporations Act; or
(ii)
means a Substantial Holder of the body corporate;
(b)
in relation to a trust, which is not a registered management investment scheme, means the management company, trustee and their related parties within the meaning of section 228 of the Corporations Act;
(c)
in relation to a trust which is a registered managed investment scheme, means the responsible entity and a related party of the responsible entity under section 228 of the Corporations Act, as modified by section 601LA of the Corporations Act; or
(d)
in relation to a person, means:
(i)
his or her spouse, de facto spouse, parent, son, or daughter, or a spouse or de facto spouse of that person;
(ii)
an entity over which one or more of the persons referred to in subparagraph (i) has control;
(iii)
an entity that he or she controls, or its holding company or which is controlled by the holding company;
(iv)
a person who acts, or proposes to act, in concert with anyone referred to above; or
(v)
a person who was a related party in the previous 6 months, or who would be a related party in the future, under the tests in section 228 of the Corporations Act (applied with any necessary adaptation).
“Relative”, in relation to a person, means the spouse, parent or remoter lineal ancestor, son or daughter or remoter issue, or brother or sister of that person.
“Relevant Activities” means, in relation to a particular Responsible Executive, the operations and processes of that part of the Market Participant’s business which the document given to ASIC under subrule 2.1.2(1) or (2), or notification given to ASIC under subrule 2.1.2(3), identifies as being under the supervision of that Responsible Executive, while that Responsible Executive remains responsible in respect of that part of the business.
“Relevant Clearing Participant” means, in relation to a Market Participant:
(a)
where the Market Participant is not itself a Clearing Participant and has a third party clearing arrangement with only one Clearing Participant to clear all of its Market Transactions, that Clearing Participant; and
(b)
where the Market Participant is itself a Clearing Participant and clears all of its Market Transactions, itself; and
(c)
where the Market Participant has third party clearing arrangements with more than one Clearing Participant, or is itself a Clearing Participant and has third party clearing arrangements with other Clearing Participants to clear its Market Transactions, the Clearing Participant which it has identified through the Open Interface Device in respect of the Market Transaction.
“Relevant Financial Market” has the meaning given by section 9 of the Corporations Act.
“Renewal Date” means the date notified by ASIC to the Market Participant under paragraph 2.4.9(2)(b), subrule 2.4.14(2) or paragraph 2.4.20(5)(b), as the date on which a person will cease to be an Accredited Adviser, unless their accreditation is renewed before that date under subrule 2.4.14(2) or 2.4.15(3).
“Renewal Period” means the period that commences 60 days prior to the Renewal Date and ends 7 days prior to the Renewal Date.
“Reportable Short Sale Order” means an Order to sell Section 1020B Products which, if executed, would result in a Reportable Short Sale Transaction.
“Reportable Short Sale Transaction” means a transaction for the sale of Section 1020B Products for which the seller is required to comply with subsection 1020AB(3) of the Corporations Act.
“Representative” has the meaning given by section 910A of the Corporations Act.
“Responsible Executive” means at any time, in relation to a Market Participant, an individual who is shown as having executive responsibility for the supervision and control of all or part of the business of that Market Participant in the document provided to ASIC under subrule 2.1.2(1) or (2) or the notification provided to ASIC under subrule 2.1.2(3).
“Retail Client” has the meaning given by section 761G of the Corporations Act.
“Rules” means these market integrity rules.
“Scheme” means:
(a)
a compromise or arrangement within the meaning of section 411 of the Corporations Act; and
(b)
in respect of an Issuer incorporated or established outside Australia, any similar form of compromise or arrangement under the law of the jurisdiction of incorporation or establishment,
which has a similar result to an Off-Market Bid or Market Bid.
“Section 1020B Products” has the meaning given by subsection 1020B(1) of the Corporations Act.
“Securities Lending Arrangement” has the meaning given by subsection 1020AA(1) of the Corporations Act.
“Security” or “security” means:
(a)
a “security” within the meaning of section 761A of the Corporations Act; or
(b)
a managed investment product.
“Settlement Facility” means, in relation to a Market Transaction, the clearing and settlement facility, within the meaning of section 761A of the Corporations Act, through which the Market Transaction has been or will be settled.
“Settlement Participant” means a person admitted as a participant under the Settlement Rules.
“Settlement Rules” means the operating rules, procedures, practices, directions, decisions and requirements of a Settlement Facility.
“Special Crossing” means a block trade or a large portfolio trade, within the meaning of the Competition Market Integrity Rules, entered into other than by matching of Orders on an Order Book of an Equity Market.
“Substantial Holder”:
(a)
for the purposes of Rule 3.2.5, 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 Corporations Act applied to that corporation; and
(b)
for the purposes of any other Rule includes a reference to:
(i)
a person who has a relevant interest in not less than 5% of a class of non-voting shares of the relevant company or its holding company; and
(ii)
each person who has a relevant interest in voting shares and non-voting shares of the relevant company or its holding company and whose aggregate holdings exceed 5% in number of the voting shares on issue of the relevant company or its holding company.
“Takeover Bid” means an Off-Market Bid or Market Bid.
“Takeover Offer” means:
(a)
an offer under a Takeover Bid and, in respect of an Issuer incorporated or established outside Australia, any similar form of offer; and
(b)
a Scheme.
“Target” means:
(a)
in relation to an Off-Market Bid or Market Bid, a target within the meaning of the Corporations Act and, in respect of an Issuer incorporated or established outside Australia, the equivalent entity; and
(b)
in relation to a Scheme, the entity or entities in a similar position to a target.
“Terms of Issue” means, in relation to Warrants, rights, conditions and obligations of the Warrant-Issuer and the holder of the Warrant.
“Trading Day” means a day on which Market Transactions may be entered into by Market Participants on a Trading Platform.
“Trading Hours”, in relation to the Chi-X Market, means the times during which:
(a)
Orders may be entered, amended or cancelled on the Order Books of the Chi-X Market; and
(b)
Orders are matched and transactions are executed on a continuous basis on the Chi-X Market.
“Trading Messages” means those messages submitted into a Trading Platform relating to trading functions, such as Orders, amendment or cancellation of Orders and the reporting or cancellation of Market Transactions on the Trading Platform.
“Trading Permission” means the right to submit Trading Messages in a Trading Platform.
“Trading Platform” means a facility made available by the Market Operator to Market Participants for the entry of Trading Messages, the matching of Orders and the reporting of transactions.
“Trading Suspension” means a halt or suspension in trading on an Equity Market pursuant to the exercise of a power by an Equity Market Operator under the Operating Rules of the Equity Market, during which Orders may not be matched or executed on the relevant Equity Market, but does not include a halt or suspension caused by a technical problem (including a power outage) affecting the technical infrastructure used by the Equity Market Operator for the purposes of receiving Trading Messages, matching and executing Orders and reporting transactions.
“Training Register” means the list, published on ASIC’s website, of training courses and assessment services that meet ASIC’s training requirements under Regulatory Guide 146 Licensing: Training of financial product advisers.
“Underlying Index” means, in relation to a Derivatives Market Contract, the index which underlies that contract.
“Underlying Market” means, in relation to a Derivatives Market Contract, a market in the instruments, commodities, securities or other things which underlie the Derivatives Market Contract.
“Unprofessional Conduct” includes:
(a)
conduct which amounts to impropriety affecting professional character and which is indicative of a failure either to understand or to practise the precepts of honesty or fair dealing in relation to other Market Participants, clients or the public;
(b)
unsatisfactory professional conduct, where the conduct involves a substantial or consistent failure to reach reasonable standards of competence and diligence; and
(c)
conduct which is, or could reasonably be considered as likely to be, prejudicial to the interests of the Market Operator or Market Participants,
by a Market Participant, or an Employee, whether in the conduct of the Market Participant’s business as a Market Participant or in the conduct of any other business, and need not involve a contravention of these Rules or any law.

“Warrant” has the meaning given by Corporations Regulation 1.0.02.
“Warrant-Issuer” means an entity approved by the Market Operator to issue Warrants.
“Wholesale Client” has the meaning given by subsection 761G(4) of the Corporations Act.
Note: There is no penalty for this Rule.

Chapter 2: Participants and Representatives

Part 2.1Management requirements

2.1.1Management structure

(1) A Market Participant must, in relation to its conduct, and that part of its business that it conducts, on or in relation to the Chi-X Market, wherever the conduct occurs or the business is located and regardless of the number of offices operated or intended to be operated by the Market Participant, have appropriate management structures in place to ensure that:
(a)
it has operations and processes in place that are reasonably designed, implemented, and that function, so as to achieve compliance by the Market Participant with these Rules and the Market Operating Rules;
(b)
the design, implementation, functioning and review of those operations and processes are subject to the supervision of one or more Responsible Executives; and
(c)
each Responsible Executive has sufficient seniority and authority within the Market Participant to exert control, leadership, influence and supervision over those operations and processes.
(2) A Market Participant must keep accurate records of its management structure and its allocation of responsibilities among its Responsible Executives.
Maximum penalty: $1,000,000

2.1.2Notification of management structure

(1) Subject to subrule (4), a Market Participant that is a Market Participant as at the Commencement Date must give to ASIC a document that sets out its management structure and its allocation of its responsibilities among its Responsible Executives, within 10 Business Days of the Commencement Date.
(2) Subject to subrule (4), a Market Participant that was not a Market Participant as at the Commencement Date must give to ASIC a document that sets out its management structure and its allocation of its responsibilities among its Responsible Executives, within 10 Business Days of becoming a Market Participant.
(3) A Market Participant that has given to ASIC a document under subrule (1) or (2) must notify ASIC in writing, within 10 Business Days, of any significant change in the management structure or its allocation of its responsibilities among its Responsible Executives shown in that document.
(4) A Market Participant is not required to comply with subrule (1) or (2), and is taken for the purposes of subrule (3) to have given ASIC a document under subrule (1) or (2), where, at the time the obligation to comply with the relevant subrule would arise, all of the following are satisfied:
(a)
the Market Participant is also an ASX Participant;
(b)
the Market Participant has given ASIC a document or set of documents that complies with ASX Market Integrity Rule 2.1.2;
(c)
the Market Participant proposes to rely on the document or set of documents referred to in paragraph (b) for the purposes of complying with these Rules; and
(d)
the Market Participant notifies ASIC in writing:
(i)
that the Market Participant proposes to rely on the document or set of documents referred to in paragraph (b) for the purposes referred to in paragraph (c); and
(ii)
of any significant change in the management structure or its allocation of its responsibilities among its Responsible Executives shown in that document or those documents.
Maximum penalty: $20,000

2.1.3Supervisory procedures

A Market Participant must have appropriate supervisory policies and procedures to ensure compliance by the Market Participant and each person involved in its business as a Market Participant with these Rules, the Market Operating Rules and the Corporations Act.
Maximum penalty: $1,000,000
2.1.4Persons involved in the business—Good fame and character requirement
(1) A Market Participant must ensure that any Employee or other person who is or will be involved in the business of the Market Participant in connection with the Chi-X Market and, in the case of a body corporate, each director or Controller, is of good fame and character and high business integrity having regard to subrule (2).
(2) In assessing whether a person is of good fame and character and high business integrity for the purpose of subrule (1):
(a)
a person will not be of good fame and character if he or she is disqualified from managing a corporation under the Corporations Act or under the law of another country, or is an insolvent under administration or its equivalent in another country; and
(b)
a person may not be of good fame and character or high business integrity if the person has been:
(i)
convicted of any offence;
(ii)
disciplined or adversely mentioned in a report made by, or at the request of, any government or governmental authority or agency;
(iii)
adversely mentioned in a report made by, or at the request of, the Market Operator, a Clearing Facility, a Settlement Facility or any other exchange, market operator or clearing and settlement facility; or
(iv)
disciplined by the Market Operator, a Clearing Facility, a Settlement Facility or any other exchange, market operator or clearing and settlement facility.
Maximum penalty: $1,000,000

2.1.5Unprofessional Conduct

(1) A Market Participant must not engage in Unprofessional Conduct.
(2) A Market Participant must ensure that its Responsible Executives do not engage in Unprofessional Conduct.
Maximum penalty: $1,000,000
2.1.6Responsibility for individuals involved in business
A Market Participant is responsible for all actions and omissions of its Employees.
Note: There is no penalty for this Rule.

Part 2.2Insurance and information requirements

2.2.1Insurance requirements—Obligation to have insurance
(1) Subject to Rule 2.2.2, every Market Participant must, where the Market Participant acts for any person other than itself or a Related Body Corporate, take out and maintain, at all times, a professional indemnity (or equivalent) insurance policy that the Market Participant determines (acting reasonably) to be adequate having regard to the nature and extent of the business carried on by the Market Participant in connection with its business as a Market Participant and the responsibilities and risks assumed or which may be assumed by the Market Participant in connection with that business.
(2) The professional indemnity (or equivalent) insurance referred to in subrule (1) must include insurance against a breach of duty the Market Participant owes in a professional capacity, whether owed in contract or otherwise at law, arising from any act or omission of the Market Participant and its Employees.
Maximum penalty: $100,000
2.2.2Insurance requirements—Insurance with Related Body Corporate
If the insurance referred to in Rule 2.2.1 is provided by a Related Body Corporate, the Market Participant must provide ASIC with the following information by no later than 10 Business Days after the issue or renewal of the insurance:
(a)
the name of the Related Body Corporate and a copy of evidence sufficient to establish that it is a Related Body Corporate; and
(b)
confirmation from the Related Body Corporate that it is the insurer or the self-insurer covering and indemnifying the Market Participant against the liabilities referred to in Rule 2.2.1 and a copy of the certificate evidencing the insurance.
Maximum penalty: $20,000
2.2.4Insurance requirements—Notification of claims
In relation to any liability or potential liability of the type referred to in Rule 2.2.1, a Market Participant must immediately notify ASIC of any notification to its insurer of any claim, potential claim or circumstance that might give rise to a claim and must include the following details:
(a)
any circumstance which is likely to give rise to a claim or potential claim against the Market Participant;
(b)
the receipt of a notice from any person of any intention to make a claim or potential claim against the Market Participant; and
(c)
the details of any claim, potential claim or circumstance against the Market Participant, including the gross contingent liability, the net contingent liability, the full name of the Market Participant’s insurer and the date the Market Participant notified its insurer of the claim, potential claim or circumstance.
Maximum penalty: $20,000
2.2.5Information requirements—Obligation to notify of legal proceedings
If:
(a)
a Market Participant commences legal proceedings against, or has legal proceedings commenced against it by, another Market Participant, a Clearing Participant, a regulatory authority or a client in connection with their role as a Market Participant; and
(b)
those legal proceedings may affect the operations of the Market Operator, or the interpretation of these Rules or the Market Operating Rules,
the Market Participant must, upon commencing or upon becoming aware of the proceedings, immediately notify ASIC and the Market Operator in writing of the particulars of the proceedings.
Maximum penalty: $100,000

Part 2.3Responsible Executives

2.3.1Appointment or resignation of Responsible Executives
(1) A Market Participant must notify ASIC within 10 Business Days if the Market Participant appoints a new Responsible Executive, or if a person ceases to be a Responsible Executive of the Market Participant.
(2) A Market Participant must not appoint a person as a Responsible Executive unless:
(a)
the person has skills, knowledge and experience that are appropriate having regard to the supervisory role that the person will perform as a Responsible Executive in the business of the Market Participant; and
(b)
as at the date the Market Participant appoints the person, the person satisfies the requirements of ASX Market Integrity Rule 2.3.1(b) or (c); or
(c)
the person has:
(i)
attained a mark of at least 65% in an examination approved by ASIC under subrule (3), in the 12 months preceding the date the Market Participant appoints the person as a Responsible Executive; and
(ii)
satisfied the Compliance Education Requirements from the date the person passed the examination as referred to in subparagraph (i) to the date the Market Participant appoints the person as a Responsible Executive, pro-rata to the number of full months in that period.
(3) For the purposes of subparagraph (2)(c)(i), ASIC may approve, in writing, one or more examinations that, in the opinion of ASIC, assess knowledge and competency in the application of the provisions of these Rules, the Market Operating Rules and the Corporations Act that govern the operation of the Chi-X Market and are relevant to the role performed by Responsible Executives.
Maximum penalty: $20,000
2.3.2Ongoing responsibilities of Market Participants in relation to Responsible Executives
A Market Participant must ensure that each of its Responsible Executives:
(a)
supervises the design and implementation activities and the functioning and review of the operations and processes referred to in Rule 2.1.1 for the Relevant Activities of that Responsible Executive; and
(b)
is accountable to the Market Participant for the effective design, implementation, functioning and review of the operations and processes referred to in paragraph (a).
Maximum penalty: $20,000
2.3.3Annual review and representation to Market Participant
(1) A Market Participant must ensure that each of its Responsible Executives:
(a)
maintains the currency of his or her knowledge of these Rules, the Market Operating Rules and the Corporations Act related to the business that the Market Participant conducts in the Chi-X Market;
(b)
by 10 July each year, performs a review as at 30 June of that year, including all matters reasonably considered by the Responsible Executive to be necessary in the circumstances, of the supervision and control procedures involved in the business of the Market Participant and other relevant documentation concerning the Market Participant’s compliance with these Rules and the Market Operating Rules for the 12 month period ending on 30 June that year;
(c)
by 10 July each year, determines whether, based on the enquiries referred to in paragraph (b), the controls over the operations and processes of the Relevant Activities have been, during the period referred to in paragraph (b), and continue to be, reasonably designed, implemented and functioning to achieve compliance by the Market Participant with these Rules and the Market Operating Rules; and
(d)
by 10 July each year, provides a signed and dated representation to the Market Participant as to whether:
(i)
the requirements of paragraphs (a) and (b) have been met for the period referred to in paragraph (b); and
(ii)
the controls over the operations and processes of the Relevant Activities have been, for the period referred to in paragraph (b), and continue to be, reasonably designed, implemented and functioning to achieve compliance by the Market Participant with the Market Operating Rules and these Rules.
(2) The Market Participant must retain copies of the representation referred to at paragraph (1)(d), and of the documentation concerning the Market Participant’s compliance with these Rules and the Market Operating Rules on which the representation is based, for 7 years from the date the representation is provided to the Market Participant.
Maximum penalty: $20,000
2.3.4Continuing education requirements for Responsible Executives
A Market Participant must ensure that, during the period from 1 July each year until 30 June the following year, each of its Responsible Executives meets the Compliance Education Requirements pro-rata to the number of complete months during that period in which that person is a Responsible Executive of the Market Participant.
Maximum penalty: $20,000
2.3.5Annual continuing education and compliance self-assessment
(1) Subject to subrule (2), a Market Participant must provide a written notification to ASIC by 31 July each year that contains the following information:
(a)
the name of each person who was a Responsible Executive of the Market Participant during the period from 1 July in the preceding calendar year to 30 June in the calendar year in which the notification is provided;
(b)
if the person was a member of a professional body or bodies during the period referred to in paragraph (a), the name of that body or those bodies;
(c)
a statement in relation to each person that the Market Participant confirms that, during the period referred to in paragraph (a), the person:
(i)
has satisfied; or
(ii)
has not satisfied,
as the case may be, each of the requirements of subrule 2.1.4(1) (good fame and character), paragraphs 2.3.1(2)(a) and (b) or (c) (skills, knowledge, experience and qualifications), subrule 2.1.5(2) (Unprofessional Conduct), paragraph 2.3.3(1)(d) (annual representation) and Rule 2.3.4 (continuing education), while the person was a Responsible Executive of the Market Participant during that period; and
(d)
if subparagraph (c)(ii) applies, an explanation of the reason that the person has not satisfied the requirement.
(2) A notification provided under subrule (1) prior to 1 August 2011 need only relate to the period from the Commencement Date to 30 June 2011.
(3) The Market Participant must retain copies of the records upon which the notification referred to in subrule (1) is based for 7 years from the end of the period to which the notification relates.
Maximum penalty: $20,000

Part 2.4Retail Client Adviser Accreditation

2.4.1Accreditation required

(1) A Market Participant must ensure that each of its Representatives who provides Financial Product Advice to a Retail Client in relation to Investment Products (Warrants) holds the relevant accreditation required by these Rules.
(2) A Market Participant must not, and must ensure that a Representative does not, hold himself or herself out as holding a type of accreditation under these Rules if they do not hold that type of accreditation.
(3) A person:
(a)
accredited as a Level One Accredited Derivatives Adviser under the Rule 2.4.7 of the ASX Market Integrity Rules is a Level One Accredited Derivatives Adviser under these Rules;
(b)
accredited as a Level Two Accredited Derivatives Adviser under the Rule 2.4.8 of the ASX Market Integrity Rules is a Level Two Accredited Derivatives under these Rules.
Maximum penalty: $100,000
2.4.2Extent of advice to clients—Level One Accredited Derivatives Adviser
(1) A Market Participant must ensure that each of its Representatives who provides Financial Product Advice to a Retail Client in relation to:
(a)
subscribing for and buying and selling Investment Products (Warrants); and
(b)
exercising Investment Products (Warrants),
is accredited as a Level One Accredited Derivatives Adviser or a Level Two Accredited Derivatives Adviser.
Maximum penalty: $100,000
Note: There is no Rule 2.4.3
2.4.4Extent of advice to clients—Level Two Accredited Derivatives Adviser
(1) A Market Participant must ensure that each of its Representatives who provides Financial Product Advice to a Retail Client in relation to:
(a)
subscribing for, buying, selling and exercising Investment Products (Warrants); and
(b)
all trading strategies relating to Investment Products (Warrants),
is accredited as a Level Two Accredited Derivatives Adviser.
(2) For the avoidance of doubt, a person accredited as a Level Two Accredited Derivatives Adviser may advise and make recommendations in relation to the Financial Products and strategies set out in Rule 2.4.2.
Maximum penalty: $100,000
Note: There is no Rule 2.4.5 or 2.4.6
2.4.7Accreditation—Level One Accredited Derivatives Adviser
(1) ASIC may, subject to any conditions ASIC considers appropriate, accredit a person as a Level One Accredited Derivatives Adviser for a period of time if:
(a)
the person is a Representative of a Market Participant and the Market Participant nominates the person to be a Level One Accredited Derivatives Adviser under subrule (2);
(b)
the person:
(i)
unless the person is applying for, or has been granted, an exemption under subrule 2.4.11(1), has obtained a score of 80% or more for an Accreditation Examination for Level One Accredited Derivatives Advisers approved by ASIC in accordance with subrule (4);
(ii)
has successfully completed an educational module or subject, or a series of educational modules or subjects, approved by ASIC in accordance with subrule (4); and
(c)
ASIC has no reason to believe that the person does not have the requisite skill, knowledge and integrity to provide Financial Product Advice of the kind covered by Rule 2.4.2.
(2) A Market Participant may nominate a person to be a Level One Accredited Derivatives Adviser by submitting a written application to ASIC that includes:
(a)
the full name, date of birth, business address and email address of the applicant, a statement that the applicant is a Representative of the Market Participant and a description of the nature of the relationship of the applicant to the Market Participant (for example, employee);
(b)
the name, business address and AFSL number of the Market Participant nominating the person to be a Level One Accredited Derivatives Adviser;
(c)
the name, position and contact telephone number of the director, partner, Responsible Executive or Compliance Manager of the Market Participant referred to in subrule (3);
(d)
unless the person has been granted, or is applying for, an exemption under subrule 2.4.11(1), a declaration by the Market Participant that the applicant meets the requirements of paragraph (1)(b);
(e)
if subparagraph (1)(b)(ii) applies, evidence that the applicant has successfully completed the educational subject or module, or series of educational subjects or modules, referred to in that subparagraph; and
(f)
an acknowledgement by the Market Participant that accreditation as a Level One Accredited Derivatives Adviser will only authorise the applicant to provide Financial Product Advice of the kind covered by Rule 2.4.2.
(3) A director, partner, Responsible Executive or Compliance Manager of the Market Participant must sign and date the application referred to in subrule (2).
(4) For the purposes of subrule (1), ASIC may approve examinations, educational modules or subjects, or a series of educational modules or subjects, that are relevant to Financial Product Advice of the kind covered by Rule 2.4.2.

Note: There is no penalty for this Rule.
2.4.8Accreditation—Level Two Accredited Derivatives Adviser
(1) ASIC may, subject to any conditions ASIC considers appropriate, accredit a person as a Level Two Accredited Derivatives Adviser for a period of time if:
(a)
the person is a Representative of a Market Participant and the Market Participant nominates the person as a Level Two Accredited Derivatives Adviser in accordance with subrule (2);
(b)
unless the person is applying for, or has been granted, an exemption under subrule 2.4.11(1), the person has obtained a score of 80% or more for each of the Accreditation Examinations for Level One Accredited Derivatives Advisers and Level Two Accredited Derivatives Advisers approved by ASIC in accordance with subrule (4); and
(c)
ASIC has no reason to believe that the person does not have the requisite skill, knowledge and integrity to provide Financial Product Advice of the kind covered by Rules 2.4.2 and 2.4.4.
(2) A Market Participant may nominate a person to be a Level Two Accredited Derivatives Adviser by submitting a written application to ASIC that includes:
(a)
the full name, date of birth, business address, email address and contact telephone number of the applicant, a statement that the applicant is a Representative of the Market Participant and description of the nature of the relationship of the applicant to the Market Participant (for example, employee);
(b)
the name, business address and AFSL number of the Market Participant nominating the person to be a Level Two Accredited Derivatives Adviser;
(c)
the name, position and contact telephone number of the director, partner, Responsible Executive or Compliance Manager of the Market Participant referred to in subrule (3);
(d)
unless the person has been granted, or is applying for, an exemption under subrule 2.4.11(1), a declaration by the Market Participant that the applicant meets the requirements of paragraph (1)(b); and
(e)
an acknowledgement by the Market Participant that accreditation as a Level Two Accredited Derivatives Adviser will only authorise the applicant to provide Financial Product Advice of the kind covered by Rules 2.4.2 and 2.4.4.
(3) A director, partner, Responsible Executive or Compliance Manager of the Market Participant must sign and date the application referred to in subrule (2).
(4) For the purposes of subrule (1), ASIC may approve, in writing one or more examinations that are relevant to Financial Product Advice of the kind covered by Rules 2.4.2 and 2.4.4.
Note: There is no penalty for this Rule.

2.4.9Acceptance of application

(1) If ASIC is satisfied that:
(a)
an application for accreditation made by a Market Participant; and
(b)
the person in respect of which the application for accreditation is made,
under Rule 2.4.7 or 2.4.8, meets the applicable requirements of the Rule, ASIC will accredit the person in the relevant category of accreditation.
(2) ASIC will give the Market Participant a written notice that a person has been accredited under subrule (1), specifying:
(a)
any conditions to which the accreditation is subject;
(b)
the Renewal Date.
(3) Nothing in subrule (1) prevents ASIC from seeking further information from the Market Participant for the purposes of satisfying itself that the person or the application meets the requirements of the relevant Rule.
Note: There is no penalty for this Rule.

2.4.10Rejection of application

(1) Subject to subrule (2), if ASIC is not satisfied that:
(a)
an application for accreditation made by a Market Participant; or
(b)
the person in respect of which the application for accreditation is made,
under Rule 2.4.7 or 2.4.8, meets the applicable requirements of the Rule, ASIC will reject the application.
(2) ASIC will give the Market Participant a written notice that an application for accreditation has been rejected under subrule (1), specifying the reason or reasons why the application is rejected.
(3) Nothing in subrule (1) prevents ASIC from seeking further information from the Market Participant for the purposes of satisfying itself that the person or the application meets the requirements of the relevant Rule.
Note: There is no penalty for this Rule.
2.4.11Exemption for other accreditation and experience
(1) ASIC may exempt a person, in writing, from the requirement to sit an Accreditation Examination if the person has:
(a)
completed a course listed on ASIC’s Training Register as a specialist course and which, in the opinion of ASIC, provides appropriate coverage of these Rules, the Market Operating Rules, the Trading Platform and the relevant Financial Products;
(b)
completed relevant training, other than a course listed on ASIC’s Training Register, and can demonstrate, to the satisfaction of ASIC, their knowledge of these Rules, the Market Operating Rules, the Trading Platform and the relevant Financial Products; or
(c)
extensive relevant industry experience and can demonstrate, to the satisfaction of ASIC, their knowledge of these Rules, the Market Operating Rules, the Trading Platform and the relevant Financial Products.
(2) ASIC may require a Market Participant to provide further information which ASIC considers necessary to establish the experience, expertise and professional history of a person nominated under this Rule for exemption from the examination requirement.
(3) ASIC may require a person nominated for exemption under this Rule to complete and pass a modified version of an Accreditation Examination to demonstrate the person’s expertise and knowledge of the Rules, the Market Operating Rules, the Trading Platform and relevant Financial Products.
Note: There is no penalty for this Rule.

2.4.12Examinations

(1) Unless ASIC gives permission under this Rule, a person may sit an Accreditation Examination for a category of accreditation no more than three times.
(2) If a person has not obtained the required pass level after sitting the Accreditation Examination three times, the Market Participant may apply to ASIC under subrule (3) for permission for the person to sit the Accreditation Examination again.
(3) A Market Participant may apply for permission for a person to sit an Accreditation Examination again by submitting a written application to ASIC that includes:
(a)
the full name, business and email address of the applicant;
(b)
the name and business address of the Market Participant seeking permission for the applicant to sit the Accreditation Examination again;
(c)
the type of Accreditation Examination that the Market Participant is applying for the applicant to re-sit;
(d)
the date on which the person last sat the Accreditation Examination;
(e)
reasons in support of the applicant being permitted to sit the Accreditation Examination again; and
(f)
the name and position of the Responsible Executive referred to in subrule (4).
(4) A Responsible Executive of the Market Participant (or, if the applicant is a Responsible Executive, another Responsible Executive of the Market Participant) must sign and date the application referred to in subrule (3).
(5) After considering the application, ASIC may permit the person to sit the examination again.
(6) ASIC will not consider an application under this Rule unless 3 months have passed since the person last sat the Accreditation Examination.
Note: There is no penalty for this Rule.

2.4.13Renewal of accreditation

(1) ASIC may renew the accreditation of an Accredited Adviser for a period of time with effect from the Renewal Date if:
(a)
the person is a Representative of a Market Participant and the Market Participant applies to ASIC during the Renewal Period to renew the person’s accreditation under subrule (2);
(b)
the person has complied with the Continuing Professional Education Requirements pro-rata to the number of full months in the period from the date the Accredited Adviser was first accredited or last renewed their accreditation to the date of the application; and
(c)
ASIC has no reason to believe that the person does not have the requisite skill, knowledge and integrity to provide Financial Product Advice of the kind covered by the relevant category of accreditation.
(2) A Market Participant may apply to ASIC to renew the accreditation of a person by submitting a written application to ASIC during the Renewal Period that includes:
(a)
the name and business address of the Market Participant seeking renewal of the accreditation of the persons named in the application;
(b)
in respect of each Accredited Adviser seeking renewal of accreditation:
(i)
the name of the Accredited Adviser;
(ii)
the category of accreditation held by the Accredited Adviser;
(iii)
a declaration that the Accredited Adviser is a Representative of the Market Participant;
(iv)
a declaration that the Accredited Adviser meets the requirements of paragraph (1)(b); and
(c)
the name, position, contact telephone number, facsimile number and email address of the director, partner, Responsible Executive or Compliance Manager of the Market Participant referred to in subrule (3).
(3) A director, partner, Responsible Executive or Compliance Manager of the Market Participant must sign and date the application referred to in subrule (2).
Note: There is no penalty for this Rule.

2.4.14Acceptance of application

(1) If ASIC is satisfied that:
(a)
an application for renewal of accreditation made by a Market Participant; and
(b)
a person in respect of which the application has been made,
meets the requirements of Rule 2.4.13, ASIC will renew the accreditation of the person with effect from the Renewal Date.
(2) ASIC will give the Market Participant a written notice that a person’s accreditation has been renewed under subrule (1), specifying the next Renewal Date.
(3) Nothing in subrule (1) prevents ASIC from seeking further information from the Market Participant for the purposes of satisfying itself that the person or the application meets the requirements of the relevant Rule.
Note: There is no penalty for this Rule.
2.4.15Rejection of application or renewal subject to conditions
(1) Subject to subrule (2), if ASIC is not satisfied that:
(a)
an application for renewal of accreditation; or
(b)
a person in respect of which the application has been made,
meets the requirements of Rule 2.4.13, ASIC may:
(c)
reject the application for renewal in respect of one or more persons; or
(d)
renew the person’s accreditation but subject to such conditions as ASIC considers appropriate.
(2) If ASIC rejects the application under paragraph (1)(c), ASIC will give the Market Participant a written notice that a person’s application for renewal has been rejected, specifying the reason or reasons that the application has been rejected.
(3) If ASIC renews the person’s accreditation subject to conditions under paragraph (1)(d), ASIC will give the Market Participant a written notice that a person’s accreditation has been renewed, specifying:
(a)
the conditions to which the renewed accreditation is subject; and
(b)
the next Renewal Date.
(4) Nothing in subrule (1) prevents ASIC from seeking further information from the Market Participant for the purposes of satisfying itself that the person or the application meets the requirements of the relevant Rule.
Note: There is no penalty for this Rule.

2.4.16Effect of non-renewal

If, by 1 Business Day after the Renewal Date, ASIC has not renewed the accreditation of an Accredited Adviser under subrule 2.4.14(1) or paragraph 2.4.15(1)(d), the person will cease to hold the relevant accreditation with effect from the Renewal Date.
Note: There is no penalty for this Rule.

2.4.17Automatic withdrawal of accreditation

(1) An Accredited Adviser’s accreditation is automatically withdrawn when the Accredited Adviser ceases to be a Representative of the Market Participant that made the application for the person to be accredited.
(2) If an Accredited Adviser ceases to be a Representative of a Market Participant, the Market Participant must notify ASIC in writing within 5 Business Days of:
(a)
the name and date of birth of the Accredited Adviser; and
(b)
the date the Accredited Adviser ceased to be a Representative of the Market Participant.
Note: There is no penalty for this Rule.

2.4.18Voluntary withdrawal of accreditation

(1) ASIC may withdraw the accreditation of an Accredited Adviser in one or more categories of accreditation if the Market Participant of which the person is a Representative requests that ASIC withdraw the accreditation under subrule (2).
(2) A Market Participant may request that ASIC withdraw the accreditation of an Accredited Adviser by submitting a written application to ASIC that includes:
(a)
the name and date of birth of the Accredited Adviser;
(b)
the name and business address of the Market Participant requesting that the accreditation be withdrawn;
(c)
the category of the accreditation which is to be withdrawn;
(d)
the Trading Day on which the Market Participant wishes the withdrawal to take effect;
(e)
the reasons for withdrawal of the accreditation; and
(f)
the name, position and contact telephone number of the director, partner, Responsible Executive or Compliance Manager of the Market Participant referred to in paragraph (3)(a).
(3) The application must be signed and dated by:
(a)
a director, partner, Responsible Executive or Compliance Manager of the Market Participant; and
(b)
the relevant Accredited Adviser.
Note: There is no penalty for this Rule.

2.4.19Suspension or withdrawal by ASIC

(1) ASIC may suspend or withdraw the accreditation of an Accredited Adviser in a category of accreditation if ASIC has reason to believe that the person does not have the requisite skill, knowledge or integrity to provide Financial Product Advice of the kind covered by the relevant category of accreditation.
(2) ASIC will notify the relevant Market Participant and the Accredited Adviser in writing of a suspension or withdrawal of accreditation under subrule (1) and the reasons for the suspension or withdrawal.
Note: There is no penalty for this Rule.
2.4.20Re-accreditation after withdrawal or expiry
(1) ASIC may re-accredit a person whose accreditation has been withdrawn or has expired, without the person sitting another Accreditation Examination if:
(a)
the person is a Representative of a Market Participant and the Market Participant applies to ASIC to re-accredit the person under subrule (2);
(b)
the person became an Employee of, or was otherwise engaged by, a Market Participant within 2 years from the date their accreditation was withdrawn or expired, and within 2 months of being re-accredited will re-commence providing Financial Product Advice to clients of a Market Participant of a kind covered by Rules 2.4.2 or 2.4.4;
(c)
the person has complied with the Continuing Professional Education Requirements pro-rata to the number of full months since the date their accreditation was granted or last renewed; and
(d)
ASIC has no reason to believe that the person does not have the requisite skill, knowledge and integrity to provide Financial Product Advice of the kind covered by the relevant category of accreditation.
(2) A Market Participant may apply to ASIC to re-accredit a person whose accreditation has been withdrawn or has expired by submitting a written application to ASIC that includes:
(a)
the name, date of birth, business address and email address of the applicant, a statement that the applicant is a Representative of the Market Participant and a description of the nature of the relationship of the applicant to the Market Participant (for example, employee);
(b)
the name, business address and AFSL number of the Market Participant seeking renewal of the accreditation of the applicant;
(c)
the category of accreditation sought;
(d)
a statement that the Market Participant requests the requirement for the person to sit the Accreditation Examination be waived;
(e)
a declaration by the Market Participant that the applicant meets the requirements of paragraph (1)(c); and
(f)
the name, position, contact telephone number, facsimile number and email address of the director, partner, Responsible Executive or Compliance Manager of the Market Participant referred to in subrule (3).
(3) A director, partner, Responsible Executive or Compliance Manager of the Market Participant must sign and date the application.
(4) If ASIC is satisfied that:
(a)
an application for re-accreditation made by a Market Participant; and
(b)
the person in respect of which the application for re-accreditation is made,
meets the applicable requirements of this Rule, ASIC will re-accredit the person in the relevant category of accreditation.
(5) ASIC will give the Market Participant a written notice that the person has been re-accredited under subrule (4), specifying:
(a)
any conditions to which the accreditation is subject;
(b)
the Renewal Date.
(6) Nothing in subrule (4) prevents ASIC from seeking further information from the Market Participant for the purposes of satisfying itself that the person or the application meets the requirements of the relevant Rule.
Note: There is no penalty for this Rule.
2.4.21Continuing Professional Education Requirements for Accredited Advisers
(1) A Market Participant must ensure that all of its Accredited Advisers comply with any continuing professional education requirements approved by ASIC in accordance with subrule (2).
(2) For the purposes of subrule (1), ASIC may approve, in writing, continuing professional education requirements for Accredited Advisers that are relevant to the skills and knowledge required to provide Financial Product Advice of the kind covered by the relevant category of accreditation.
Maximum penalty: $20,000
2.4.22Managed Discretionary Accounts— Investment Products (Warrants)
A Market Participant must ensure that a Managed Discretionary Account for a Retail Client which involves dealing in Investment Products (Warrants) is operated by an Accredited Adviser with the appropriate accreditation under these Rules.
Maximum penalty: $1,000,000
Part 2.5Designated Trading Representatives (DTRs)

2.5.1Trading in a Trading Platform

A Market Participant must ensure that all trading in a Trading Platform by the Market Participant is carried out either:
(a)
by DTRs; or
(b)
in accordance with the Automated Order Processing Requirements.
Maximum penalty: $1,000,000

2.5.2Market Participant must have a DTR

A Market Participant must have at least one DTR.
Maximum penalty: $1,000,000

2.5.3DTRs may submit Trading Messages

A Market Participant must ensure that only its DTRs submit Trading Messages into the Trading Platform through the Market Participant’s system, unless the trading is conducted in accordance with the Automated Order Processing Requirements.
Maximum penalty: $1,000,000

2.5.4Responsibility of Market Participant

A Market Participant is responsible for the accuracy of details, the integrity and bona fides of all Trading Messages containing their unique identifier that are submitted into the Trading Platform, regardless of whether a DTR of the Market Participant was involved in their submission.
Note: There is no penalty for this Rule.

2.5.5DTR criteria

A Market Participant must ensure that:
(a)
each of its DTRs is at all times a Representative of the Market Participant authorised to deal in the Cash Market Products in respect of which the DTR submits orders on behalf of the Market Participant either:
(i)
under the Market Participant’s AFSL; or
(ii)
under the person’s own AFSL (unless the person is a Principal Trader not required to hold an AFSL);
(b)
each of its DTRs is suitably qualified and experienced to deal in the Cash Market Products referred to in paragraph (a), by submitting orders on behalf of the Market Participant;
(c)
prior to submitting Trading Messages on behalf of the Market Participant, each DTR has demonstrated to the Market Participant knowledge of the Dealing Rules governing the process of dealing and reporting Market Transactions on the Trading Platform, and the relevant practices of the Market Operator; and
(d)
each of its DTRs does not:
(i)
execute any order in a Trading Platform for or on behalf of, or which will benefit, directly or indirectly, the DTR or any associate or Relative of the DTR, without the prior written approval of the Market Participant; or

(i)
has made a prior firm arrangement with the vendor to place these Equity Market Products as soon as they are issued; and
(ii)
ensures that the details of the issue to the vendor are advised to the ASX Market by the listed entity immediately the Equity Market Products are issued;
(e)
where a Market Participant:
(i)
makes a placement of new Equity Market Products (except Loan Securities) for which Official Quotation will be sought, and the Market Participant ensures that all investors accepting the Equity Market Products are informed in writing that Market Participants cannot deal in the Equity Market Products either as Principal or agent until Official Quotation is granted in respect of those Equity Market Products;
(ii)
accepts selling orders in Equity Market Products (except Loan Securities) for which Official Quotation will be sought, and the Market Participant takes all reasonable steps to ensure that the Equity Market Products are not sold before the Equity Market Products have been granted Official Quotation; or
(iii)
accepts selling orders in Equity Market Products (except Loan Securities) where the Equity Market Products are of the same class as Equity Market Products which have already been granted Official Quotation and:
(A)
the Equity Market Products have already been issued by the Issuer; and
(B)
the fact that the Equity Market Products have been issued has been notified to, and released to the ASX Market by, the Company Announcements Office; and
(f)
a Market Participant may dispose of or acquire ETF Securities which are the subject of a subscription application if:
(i)
the ETF Securities are in a class of ETF Securities which are quoted on the ASX Market;
(ii)
the subscription application is irrevocable and subject only to transfer of the subscription consideration from the subscriber to the Issuer;
(iii)
the disposal or acquisition is made on the Chi-X Market in accordance with these Rules and the Market Operating Rules;
(iv)
there is an arrangement between the Issuer and ASX under which the ETF Securities will be granted Official Quotation before settlement of the disposal or acquisition; and
(v)
the number of ETF Securities on issue is regularly reported to ASX on the basis required by ASX.
Note: There is no penalty for this Rule.
5.10.3Dealings in Securities for which Official Quotation will not be sought
A Market Participant may deal in new Securities issued by a listed entity for which Official Quotation will not be sought 24 hours after that entity has advised the ASX Market of the details of the issue.
Note: There is no penalty for this Rule.
5.10.4Dealings in Cash Market Products suspended from Official Quotation
A Market Participant must not deal in Cash Market Products which have been suspended from quotation or trading unless the Cash Market Product is quoted on another Equity Market and is not in a Trading Suspension on that Equity Market.
Maximum penalty: $100,000
5.10.5Disclosure of shortfall—Must disclose to Client
A Market Participant, an Employee or a director of a Market Participant or a company which is a partner of a Market Participant who or which will be required to acquire Equity Market Products as underwriter or sub-underwriter must not offer such Equity Market Products to clients unless:
(a)
they first inform the clients concerned of the closing date of the issue or offering of the Equity Market Products and the reasons for the acquisition; or
(b)
the offer to the client is made more than 90 days from the closing date.
Maximum penalty: $100,000
5.10.6Expenses—Reimbursement for out-of-pocket expenses
Where a Market Participant seeks out-of-pocket expenses involved in the purchase or sale of Cash Market Products, the Market Participant must not cover that charge by an increase or reduction in the price of the Cash Market Products.
Maximum penalty: $100,000
5.10.7Nominee holdings—Restrictions on when an Equity Security can be recorded in the name of a nominee company
(1) A Market Participant must not cause the ownership of an Equity Security of which it is not the beneficial owner to be registered in its own name or in the name of its partners, directors or Employees.
(2) A Market Participant may only cause the ownership of an Equity Security referred to in subrule (1) to be registered in the name of a nominee company which:
(a)
unless otherwise agreed by ASIC, is incorporated in Australia with a name which contains the word “nominee”;
(b)
has a constitution which precludes the nominee company from owning any Equity Security or other property except cash beneficially; and
(c)
is a directly legally and beneficially wholly owned subsidiary of the Market Participant which is operated by the Market Participant unless the Market Participant is a Clearing Participant who appoints a Settlement Participant as its agent in accordance with the Clearing Rules.
Maximum penalty: $100,000

Part 5.11Suspicious activity reporting

5.11.1Notification requirement

(1) Subject to subrules (2) and (3), if a Market Participant has reasonable grounds to suspect that:
(a)
a person (“the Insider”) has placed an order into or entered into a transaction on the Chi-X Market in relation to a financial product while in possession of inside information (within the meaning of section 1042A of the Corporations Act), whether or not the Market 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 a Trading Platform has or is likely to have the effect of:
(i)
creating an artificial price for trading in financial products on the Chi-X Market;
(ii)
maintaining at a level that is artificial (whether or not it was previously artificial) a price for trading in financial products on the Chi-X Market;
(iii)
creating, or causing the creation of, a false or misleading appearance of active trading in financial products on the Chi-X Market; 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 the Chi-X Market,
whether or not the Market 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 Market Participant must, as soon as practicable, notify ASIC in writing of the details of the transaction or order (to the extent known by the Market Participant) and the reasons it suspects the matter set out in paragraphs (a) and/or (b).
(2) A Market Participant is not required to notify ASIC under subrule (1) to the extent the Market Participant has reported the information that would otherwise be required to be contained in the notification 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 Market Participant is not required to comply with subrule (1) until 1 November 2012.
Maximum penalty: $20,000

5.11.2Confidentiality

A Market Participant who notifies ASIC under subrule 5.11.1(1) must not disclose that the notification was made, or the information contained in the notification, other than:
(a)
for the purposes of seeking legal advice; or
(b)
as required by law.
Maximum penalty: $20,000

Chapter 6: Takeovers

Part 6.1Market Bid—Announcements by Market Participant

6.1.1Announcement of Market Bid

(1) A Market Participant acting on behalf of a Bidder in relation to a Market Bid must ensure that the bid has been announced to the Relevant Financial Market in accordance with subrule (2).
(2) For the purposes of subrule (1), the announcement must include the following information:
(a)
a description of the Bid Class of Equity Market Products in the Target and the total number of Equity Market Products in that Bid Class;
(b)
the price offered for Equity Market Products in the Bid Class;
(c)
the date of the commencement and conclusion of the Offer Period;
(d)
the number of Equity Market Products in the Bid Class that the Bidder had a relevant interest in immediately prior to the announcement (expressed as a percentage of the total number of Equity Market Products in the Bid Class); and
(e)
a statement:
(i)
as to whether the Bidder will buy Equity Market Products in the Bid Class On-Market before the Offer Period commences and, if so, the maximum number of those Equity Market Products to be bought and the price that will be paid;
(ii)
that the Market Bid is an offer to buy all the Equity Market Products in the Bid Class that exist or will exist at any time during the Offer Period for the price offered; and
(iii)
that the Offer Period may be extended and the offer price may be increased in accordance with the Corporations Act.
Maximum penalty: $100,000

6.1.2Announcement of variations to Market Bid

A Market Participant acting on behalf of a Bidder in relation to a Market Bid must ensure that the following is announced to the Relevant Financial Market, in writing:
(a)
an increase to the price offered for Equity Market Products in the Bid Class;
(b)
an extension to the Offer Period;
(c)
a withdrawal of the Market Bid;
(d)
any other variation to the Market Bid in accordance with the Corporations Act; or
(e)
if the Market Participant ceases to act on behalf of the Bidder.
Maximum penalty: $100,000

Part 6.2Acquisition of Equity Market Products during the Bid Period

6.2.1Acquisition of Equity Market Products by Bidder
(1) This rule applies to both Market Bids and Off-Market Bids.
(2) A Market Participant acting on behalf of a Bidder must not offer to buy on behalf of the Bidder Equity Market Products in the Bid Class On-Market during the Bid Period for a price that varies from the consideration offered under the Takeover Bid unless and until an announcement has been made to the Relevant Financial Market.
(3) For the purposes of subrule (2), the announcement must be made in writing, by facsimile or electronic delivery to the operator of the Relevant Financial Market.
Maximum penalty: $100,000
6.2.2Acquisition of Equity Market Products by another Bidder
(1) Where Equity Market Products are subject to a Market Bid, a Market Participant acting on behalf of another Bidder, must not buy the Equity Market Products in the Bid Class of the Target on behalf of that Bidder unless and until:
(a)
a Market Bid on behalf of the person pursuant to Rule 6.1.1; or
(b)
an increase in the price offered under a Market Bid for the Equity Market Products pursuant to Rule 6.1.2,
has been announced to the Relevant Financial Market in accordance with subrule (2).
(2) For the purposes of subrule (1), the announcement must be made in writing, by facsimile or electronic delivery to the operator of the Relevant Financial Market.
Maximum penalty: $100,000

Part 6.3Market Participant acting for Bidder or Issuer

6.3.1Market Participant to advise seller if acting for Bidder or Issuer
Where a Market Participant:
(a)
has an order from the Bidder in relation to an Off-Market Bid;
(b)
has made an announcement to the Relevant Financial Market on behalf of a Bidder to acquire Equity Market Products under a Market Bid; or
(c)
acts for a company involved in a buy-back under Chapter 2J of the Corporations Act conducted on a Relevant Financial Market,
the Market Participant must not accept, or transact, an order to sell Equity Market Products in the Bid Class referred to in paragraph (a) or subject to the announcement referred to in paragraph (b) or subject to the buy-back referred to in paragraph (c) unless the Market Participant:
(d)
advises the seller that it is acting for the Bidder or that it is acting for the company involved in the buy-back and is thus unable to give the seller advice in respect of the proposed sale; and
(e)
does not give the seller any advice in respect of the proposed sale.
Maximum penalty: $100,000

Chapter 7: Rules applying to Market Operators

Part 7.1Data feeds

7.1.1Provision of live electronic data from the Trading Platform
(1) The Market Operator must deliver, or procure delivery of, a live feed of the electronic data items set out in subrule (2) as generated on or by its Trading Platform to ASIC or to a service provider nominated by ASIC and notified to the Market Operator in accordance with Rule 7.1.2.
Order information from Trading Platform
(2) Electronic data provided pursuant to subrule (1) must contain such data items and fields which are generated on or by the Market Operator’s Trading Platform containing all Orders entered on the Market Operator’s Trading Platform, being:
(a)
order price and volume entries;
(b)
order amendments;
(c)
trade price and volume entries;
(d)
any special trade condition codes;
(e)
broker number and identifier code;
(f)
participant operator cross-reference data, where that data is available;
(g)
information comprising details of the Financial Products traded through the Trading Platform, being:
(i)
name of Issuer or publicly available issuer code;
(ii)
tick size;
(iii)
lot size;
(iv)
basis of quotation;
(v)
time stamps on all order entries, trades, amendments, cancellations and deletions;
(vi)
unique order identifier or, if this is not available, unique order series identifier; and
(ga) information for the order or trade recorded by the Market Operator in accordance with subrule5A.2.2(1) of the Competition Market Integrity Rules; and
(h)
such additional data items or fields notified by ASIC to the Market Operator under Rule 7.1.2 which are generated on or by the Market Operator’s Trading Platform, provided that a Market Operator is not required to provide fields that are not generated on or by the Market Operator’s Trading Platform.
Format requirements
(3) The electronic data required by subrule (1) must be in such format as ASIC notifies the Market Operator in accordance with Rule 7.1.2.
Data security and redelivery
(4) The electronic data required by subrule (1) must:
(a)
comply with any data security requirements as notified by ASIC to the Market Operator under Rule 7.1.2; and
(b)
be redelivered by the Market Operator if there is disruption to the telecommunications link through which the data is provided or for any other reason ASIC does not receive the data, and ASIC notifies the Market Operator in accordance with Rule 7.1.2 that ASIC requires the data to be redelivered.
Delivery requirements
(5) The electronic data required by subrule (1) must be delivered by the Market Operator to ASIC or its nominated service provider in a manner and to a location notified by ASIC to the Market Operator in accordance with Rule 7.1.2.
Maximum penalty: $1,000,000

7.1.2Notification

A notification by ASIC to the Market Operator of:
(a)
a service provider under subrule 7.1.1(1);
(b)
additional data items under paragraph 7.1.1(2)(h);
(c)
data format requirements under subrule 7.1.1(3);
(d)
data security requirements or to redeliver data under subrule 7.1.1(4); or
(e)
a manner and, or, location of delivery under subrule 7.1.1(5),
must be in writing and allow the Market Operator a reasonable period to comply.
Note: There is no penalty for this rule

Part 7.2Information

7.2.1Provision of information about Market Participants
The Market Operator must maintain the information specified below about each Market Participant and advise ASIC in writing of any changes which are made to the information (including any changes resulting from the admission of new Market Participants) within 2 Business Days of the change being made:
(a)
Market Participant name;
(b)
the unique identifier that is used by the Market Operator to identify the trading activities of the Market Participant on the Market Operator’s Trading Platform; and
(c)
Market Participant type.
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 (Chi-X Australia Market) 2011 (F2011L00685)	04/05/2011	05/05/2011	-
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2011 (No. 1) (F2011L02153)	28/10/2011	29/10/2011	-
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2011 (No. 2) (F2011L02150)	28/10/2011	31/10/2011	-
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2012 (No. 1) (F2012L01569)	17/07/2012	18/07/2012	-
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2012 (No. 2) (F2012L01574)	18/07/2012	19/07/2012	-
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2012 (No. 3) (F2012L02251)	26/11/2012	Items [33] to [36] of Schedule 1: 27/11/2012 All Items other than Items [33] to [36] of Schedule 1: 26/05/2014	-
as amended by
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2013 (No.1) (F2013L01560)	09/08/2013	Items [1] to [3] of Schedule 2: 10/08/13
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2013 (No.1) (F2013L01560)	09/08/2013	Items [1], [7] to [10] of Schedule 1: 10/08/13 Items [2] and [3] of Schedule 1: 9/11/13 Items [5], [6] and [11] to [13] of Schedule 1: 9/02/14 Item [4] of Schedule 1: 26/05/14	Commencement of item [4] of Schedule 1 as amended by item [1] of Schedule. 1 of F2014L00515
as amended by
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2014 (No.2) (F2014L00515)	08/05/2014	Items [1] and [2] of Schedule 1: 9/05/14
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2014 (No.1) (F2014L00129)	07/02/2014	09/02/2014
ASIC Market Integrity Rules (Chi-X Australia Market-Capital) 2014 (F2014L00592)	22/05/2014	26/05/2014
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2014 (No.3) (F2014L01025)	25/07/2014	26/07/2014
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2015 (No. 1) (F2015L00620)	01/05/2015	02/05/2015
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2015 (No. 2) (F2015L01696)	26/10/2015	27/10/2015
ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2017 (No. 1) (F2017L01461)	13/11/2017	14/11/2017

Endnote 2 - Amendment history
ad. = added or inserted
am. = amended rep. = repealed rs. = repealed and substituted

Provision affected	How affected
Rule 1.4.3	am. F2011L02150, Schedule 1, items [1] to [12], am. F2012L01574, paragraph 4, items [1] and [2], am. F2013L01560, Schedule 1, item [1], am. F2013C00811, Schedule 1, item [1], am. F2015L01696, Schedule 1, items [1] to [23], ad. F2017L01461, Schedule 1, items [1] and [3], rs. F2017L01461, Schedule 1, item [2]
Rule 2.2.3	rep. F2015L00620, Schedule 1, item [1]
Part 2.4	ad. F2015L01696, Schedule 1, item [24]
Rule 2.5.5(a)	am. F2015L01696, Schedule 1, item [25]
Rule 2.5.5(b)	am. F2015L01696, Schedule 1, item [26]
Part 2.6	ad. F2011L02150, Schedule 1, item [13]
Rule 3.1.2	ad. F2015L01696, Schedule 1, item [27]
Rule 3.1.3(2)(c)	am. F2015L01696, Schedule 1, item [28]
Rule 3.1.3(2)(d)	am. F2015L01696, Schedule 1, item [29]
Rule 3.1.3(2)(e)	ad. F2015L01696, Schedule 1, item [30]
Rule 3.1.4(2)(b)(ii)	am. F2015L01696, Schedule 1, item [31]
Rule 3.1.4(2)(b)(iii)(A)	am. F2015L01696, Schedule 1, item [32]
Rule 3.1.4(2)(b)(iii)(B)	am. F2015L01696, Schedule 1, item [33]
Rule 3.1.4(3)(c)	am. F2015L01696, Schedule 1, item [34]
Rule 3.1.4(3)(d)	am. F2015L01696, Schedule 1, item [35]
Rule 3.1.4(3)(e)	ad. F2015L01696, Schedule 1, item [36]
Rule 3.1.8	ad. F2015L01696, Schedule 1, item [37]
Rule 3.1.10	am. F2015L01696, Schedule 1, item [38]
Rule 3.2.4(1)	am. F2013L01560, Schedule 1, item [2]
Rule 3.2.5(1)(e)	am. F2013L01560, Schedule 1, item [3]
Rule 3.2.5(2)	am. F2015L01696, Schedule 1, item [39]
Rule 3.2.5(3)	am. F2015L01696, Schedule 1, item [40]
Rule 3.3.1(a)	am. F2011L02150, Schedule 1, item [14]
Rule 3.3.1(d)	am. F2011L02150, Schedule 1, item [15]
Rule 3.4.1(3)(d)(i)	am. F2015L01696, Schedule 1, item [41]
Rule 3.4.1(3)(h)	rs. F2015L01696, Schedule 1, item [42]
Rule 3.4.2(b)	am. F2015L01696, Schedule 1, item [43]
Rule 3.4.3	rs. F2013L01560, Schedule 1, item [4]
Rule 3.5.1	rs. F2015L01696, Schedule 1, item [44]
Rule 4.2.1(1)(e)	am. F2015L01696, Schedule 1, item [45]
Rule 4.2.1(1)(f)	am. F2015L01696, Schedule 1, item [46]
Rule 4.2.1(1)(f)(i)	am. F2015L01696, Schedule 1, item [47]
Rule 4.2.1(1)(f)(ii)	am. F2015L01696, Schedule 1, item [48]
Rule 4.2.1(2)	am. F2015L01696, Schedule 1, item [49]

Rule 4.2.1(3)	am. F2015L01696, Schedule 1, item [50]
Rule 4.2.1(4)	am. F2015L01696, Schedule 1, item [51]
Rule 5.1.1	am. F2015L01696, Schedule 1, item [52]
Rule 5.1.4(1)(e)	am. F2015L01696, Schedule 1, item [53]
Rule 5.1.4(1)(g)	am. F2013L01560, Schedule 1, item [5]
Rule 5.1.4(1)(h)	ad. F2013L01560, Schedule 1, item [6]
Rule 5.1.4(2)	am. F2015L01696, Schedule 1, item [54]
Rule 5.1.4(2)(a)	am. F2015L01696, Schedule 1, item [55]
Rule 5.1.4(2)(b)	am. F2015L01696, Schedule 1, item [56]
Rule 5.1.7	rs. F2015L01696, Schedule 1, item [57]
Part 5.2	rep. F2015L00620, Schedule 1, item [2]
Rule 5.4.2(3)	am. F2015L01696, Schedule 1, item [58]
Rule 5.6.1	am. F2013L01560, Schedule 1 item [7]
Rule 5.6.1(b)(i)	am. F2013L01560, Schedule 1 item [8]
Rule 5.6.1(b)(ii)	am. F2013L01560, Schedule 1 item [9]
Rule 5.6.1(b)(iii)	ad. F2013L01560, Schedule 1 item [10]
Rule 5.6.1(2)	ad. F2013L01560, Schedule 1 item [10]
Rule 5.6.3	am. F2013C00811, Schedule 1, item [2]
Rule 5.6.3(b)	am. F2013C00811, Schedule 1, item [3]
Rule 5.6.3(c)	am. F2013C00811, Schedule 1, items [4] and [5]
Rule 5.6.3(d)	ad. F2013C00811, Schedule 1, item [6]
Rule 5.6.3(1)(d)(iii)	am. F2015L01696, Schedule 1, item [59]
Rule 5.6.3(e)	ad. F2013C00811, Schedule 1, item [6]
Rule 5.6.3(2)	ad. F2013C00811, Schedule 1, item [7]
Rule 5.6.4	am. F2013C00811, Schedule 1, item [8]
Rule 5.6.4(2) and note	ad. F2013C00811, Schedule 1, item [9]
Rule 5.6.5(1)	am. F2013C00811, Schedule 1, items [10] and [11]
Rule 5.6.5(2)	am. F2013C00811, Schedule 1, item [12]
Rule 5.6.5(2)(a)	am. F2013C00811, Schedule 1, items [13] and [14]
Rule 5.6.5(3) and note	ad. F2013C00811, Schedule 1, item [15]
Rule 5.6.6(1)	am. F2013C00811, Schedule 1, item [16]
Rule 5.6.6(1)(a)	am. F2013C00811, Schedule 1, item [17]
Rule 5.6.6(1)(b)	am. F2013C00811, Schedule 1, item [18]
Rule 5.6.6(2)	am. F2013C00811, Schedule 1, item [19]
Rule 5.6.6(2)(d)(iii)	am. F2013C00811, Schedule 1, item [20]
Rule 5.6.6(4) and note	ad. F2013C00811, Schedule 1, item [21]
Rule 5.6.6A	rep. F2013C00811, Schedule 1, item [22]
Rule 5.6.7	rep. F2013C00811, Schedule 1, item [23]
Rule 5.6.8 (heading)	am. F2013C00811, Schedule 1, item [24]
Rule 5.6.8	am. F2013C00811, Schedule 1, items [25] to [28]
Rule 5.6.8(2)	ad. F2013C00811, Schedule 1, item [29]
Rule 5.6.8(3)	ad. F2013C00811, Schedule 1, item [29]
Rule 5.6.8A	ad. F2013C00811, Schedule 1, item [30]
Rule 5.6.8B	ad. F2013C00811, Schedule 1, item [30]
Rule 5.6.9	rep. F2013C00811, Schedule 1, item [31]
Rule 5.6.10	rep. F2013C00811, Schedule 1, item [32]
Rule 5.6.12(2)(b)(iv)	am. F2015L01696, Schedule 1, item [60]
Rule 5.7.1	am. F2015L01696, Schedule 1, item [61]
Rule 5.7.1(a)	am. F2015L01696, Schedule 1, item [62]
Rule 5.7.2(a)	am. F2015L01696, Schedule 1, item [63]
Rule 5.7.2(b)	am. F2015L01696, Schedule 1, item [64]
Rule 5.7.2(d)	am. F2015L01696, Schedule 1, item [65]
Rule 5.7.2(g)	am. F2013L01560, Schedule 1, item [11]; am. F2015L01696, Schedule 1, item [66]
Rule 5.7.2(h)	am.F2013L01560, Schedule 1, item [12]
Rule 5.7.2(i),(j),(k)	ad. F2013L01560, Schedule 1, item [13]
Rule 5.7.2(j)	am. F2015L01696, Schedule 1, item [67]
Rule 5.7.2(k)	am. F2015L01696, Schedule 1, item [68]
Rule 5.9.1	am. F2015L01696, Schedule 1, item [69]
Rule 5.10.4	am. F2011L02150, Schedule 1, item [16]; rs. F2015L01696, Schedule 1, item [70]
Rule 5.10.6	am. F2015L01696, Schedule 1, item [71]
Part 5.11	ad. F2012L01569, paragraph 4, item [1]
Rule 5.11.1(1)(a)	am. F2015L01696, Schedule 1, item [72]
Rule 5.11.1(1)(b)(i)	am. F2015L01696, Schedule 1, item [73]
Rule 5.11.1(1)(b)(ii)	am. F2015L01696, Schedule 1, item [74]
Rule 5.11.1(1)(b)(iii)	am. F2015L01696, Schedule 1, item [75]
Rule 5.11.1(1)(b)(iv)	am. F2015L01696, Schedule 1, item [76]
Part 5.12	ad. F2012L01574, paragraph 4, item [3]; rep. F2014L01025, Schedule 1, item [1]
Rule 5.12.2	am.F2014L00129, Schedule 1, item [1]
Part 6.4	rep. F2015L00620, Schedule 1, item [3]
Part 6.4, heading	am. F2011L02150, Schedule 1, item [17]
Rule 6.4.1, heading	am. F2011L02150, Schedule 1, item [18]
Rule 6.4.1	am. F2012L02251, Schedule 1, item [33]
Subrule 6.4.1(2)	am. F2011L02150, Schedule 1, item [19]
Part 6.5	rep. F2015L00620, Schedule 1, item [4]
Part 6.6	rep. F2015L00620, Schedule 1, item [5]
Rule 7.1.1(2)(g)(vi)	am. F2012L02251, Schedule 1, item [34]
Rule 7.1.1(2)(g)	ad. F2012L02251, Schedule 1, item [35]
Rule 7.1.2, Note	ad. F2012L02251, Schedule 1, item [36]
Chapter 8	ad. F2011L02153, paragraph 4, rep. F2014L00592, Rule 1.5.1(a)
Chapter 9	ad. F2011L02153, paragraph 4, rep. F2014L00592, Rule 1.5.1(a)
Schedule 1A and Annexures	ad. F2011L02153, paragraph 4, rep. F2014L00592, Rule 1.5.1(b) and (c)
Schedule 1C	ad. F2011L02153, paragraph 4, rep. F2014L00592, Rule 1.5.1(b)