ASIC Class Rule Waiver [17-0251]
About this compilation
Compilation No. 1
This is a compilation of ASIC Class Rule Waiver [17-0251] as in force on 7 March 2018. 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
Part 1—Preliminary
1 Name of legislative instrument
3 Authority
4 Interpretation
Part 2—Waiver
5 Waiver from aggregate loss limit requirements
6 Conditions
7 Expiry
Endnotes
Endnote 1—Instrument history
Endnote 2—Amendment history
Part 1—Preliminary
1 Name of legislative instrument
This instrument is ASIC Class Rule Waiver [17-0251].
3 Authority
This instrument is made under subrule 1.2.1(1) of the ASIC Market Integrity Rules (ASX 24 Market) 2010.
4 Interpretation
In this instrument, unless the contrary intention appears, capitalised terms have the meaning given by the ASIC Market Integrity Rules (ASX 24 Market) 2010.
Part 2—Waiver
5 Waiver from aggregate loss limit requirements
(1) ASIC relieves a Market Participant from the obligation to comply with subrule 2.2.1(1)(a) to the extent that subrule requires the Market Participant to set and document an appropriate pre-determined aggregate loss limit on each of its Client Accounts.
Note: This waiver does not affect a Market Participant's other obligations in subrule 2.2.1(1)(a), to set and document appropriate pre-determined Order and/or position limits including a volume per Order limit and an aggregate net session limit for each of its Client Accounts.
(2) ASIC relieves a Market Participant from the obligation to comply with subrule 2.2.1(1)(ab) to the extent that subrule requires the Market Participant to set and document an appropriate pre-determined aggregate loss limit on each of its House Accounts.
Note: This waiver does not affect a Market Participant's other obligations in subrule 2.2.1(1)(ab), to set and document appropriate pre-determined Order and/or position limits including a volume per Order limit and an aggregate net session limit for each of its House Accounts.
(3) ASIC relieves a Market Participant from the obligation to comply with subrule 2.2.1(1)(c) to the extent that subrule requires a Market Participant's risk manager to input the aggregate loss limits set and determined by the Market Participant in accordance with subrules 2.2.1(1)(a) and 2.2.1(1)(ab) into Trading Platform account maintenance.
Note: This waiver does not affect the obligation in subrule 2.2.1(1)(c) to input pre-determined Order and/or position limits including a volume per Order limit and an aggregate net session limit into Trading Platform account maintenance.
6 Conditions
(1) It is a condition of the waiver in paragraph 5(1) that a Market Participant implements appropriate processes to monitor the aggregate loss limit on each of its Client Accounts.
(2) It is a condition of the waiver in paragraph 5(2) that a Market Participant implements appropriate processes to monitor the aggregate loss limit on each of its House Accounts.
7 Expiry
The waiver in this instrument ceases to apply at the end of 20 March 2020.
Endnotes
Endnote 1—Instrument history
Instrument number | Date of FRL registration | Date of commencement | Application, saving or transitional provisions |
[17-0251] | 17/3/2017 (see F2017L00248) | 17/3/2017 | |
[CW 18/0143] | 6/3/2018 (see F2018L00202) | 6/3/2018 | - |
Endnote 2—Amendment history
ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Section 2 | rep. s48D LA |
Para 7 | am. [CW 18/0143] |
Overview
The ASIC Class Rule Waiver [17-0251], enacted in 2017, provides a temporary exemption for market participants from certain compliance requirements under the ASIC Market Integrity Rules (ASX 24 Market) 2010. This legislative instrument was introduced to address the administrative burden faced by market participants in adhering to specific aggregate loss limit requirements. The Australian Securities and Investments Commission (ASIC), as the enacting body, aims to strike a balance between regulatory oversight and practical compliance challenges for market participants. Under this waiver, market participants are relieved from the obligation to set and document pre-determined aggregate loss limits on their client and house accounts, while still maintaining other related compliance obligations such as setting order and position limits. This waiver is subject to conditions, including the implementation of appropriate monitoring processes, and is set to expire at the end of 20 March 2020.
Scope and Application
ASIC Class Rule Waiver [17-0251] applies to Market Participants who are subject to the ASIC Market Integrity Rules (ASX 24 Market) 2010. This waiver specifically addresses the aggregate loss limit requirements for Market Participants' Client Accounts and House Accounts, relieving them from certain obligations under subrules 2.2.1(1)(a), 2.2.1(1)(ab), and 2.2.1(1)(c). However, it is crucial to note that while these specific aggregate loss limit obligations are waived, Market Participants must still adhere to other related obligations such as setting and documenting appropriate pre-determined Order and/or position limits. This waiver is applicable nationally and is in force from 17 March 2017 until 20 March 2020, unless amended by subordinate instruments or further legislation.
Key Provisions
The ASIC Class Rule Waiver [17-0251] provides a temporary exemption for Market Participants from certain obligations under the ASIC Market Integrity Rules (ASX 24 Market) 2010. Specifically, it exempts them from setting and documenting pre-determined aggregate loss limits for their Client Accounts (paragraph 5(1)) and House Accounts (paragraph 5(2)), as well as from inputting these limits into Trading Platform account maintenance (paragraph 5(3)). However, it is important to note that this waiver does not affect the requirement to set and document pre-determined Order and/or position limits, including volume per Order limits and aggregate net session limits (subrule 2.2.1(1)(a) and (ab)). Instead, Market Participants must continue to monitor these limits through appropriate processes (paragraph 6(1) and (2)). The waiver is effective from 17 March 2017 until the end of 20 March 2020 (paragraph 7).
The ASIC Class Rule Waiver [17-0251] imposes specific obligations on Market Participants who are granted the waiver. These obligations include implementing appropriate processes to monitor aggregate loss limits on Client Accounts and House Accounts (paragraph 6(1) and (2)). This means that while Market Participants are exempt from setting and documenting these limits, they must still ensure that they are closely monitored to maintain risk management standards. Additionally, Market Participants must continue to comply with other obligations under the ASIC Market Integrity Rules, such as setting and documenting Order and/or position limits (subrule 2.2.1(1)(a) and (ab)).
The ASIC Class Rule Waiver [17-0251] does not explicitly outline offences, penalties, or consequences for breach within the text of the legislation itself. However, any breach of the ASIC Market Integrity Rules, which the waiver is intended to modify, could potentially lead to enforcement actions by ASIC. These actions could include civil or criminal penalties, depending on the nature and severity of the breach. The specific penalties for breaches of the ASIC Market Integrity Rules are detailed in other sections of the ASIC Act and ASIC Regulations, and could include fines, compensation orders, or even criminal charges in severe cases. It is therefore important for Market Participants to understand and comply with all relevant obligations and conditions set out in the waiver and the underlying rules.