ASIC Class Rule Waiver [CW 11/1103]

ASIC Class Rule Waiver [CW 11/1103]

Exceptions from pre-trade transparency requirements: ASX and Chi-X markets

This instrument has effect under Rule 1.2.1(1) of the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011.

This compilation was prepared on 2 March 2012 taking into account amendments up to [CW 12/233]. See the table at the end of this Class Rule Waiver.

Prepared by the Australian Securities and Investments Commission.

Australian Securities and Investments Commission
ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 – Rule 1.2.1(1) – Class Rule Waiver

Enabling provision

1. The Australian Securities and Investments Commission (ASIC) makes this instrument under Rule 1.2.1(1) of the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 (the Competition Rules).

Title

2.      This instrument is ASIC Class Rule Waiver [CW 11/1103].

Commencement

3.      This instrument commences on the later of:

(a)   31 October 2011; and

(b)   the date it 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 http://www.frli.gov.au/.

Waiver

4.      ASIC relieves a Participant from the obligation to comply with Rule 4.1.1(1) of the Competition Rules during the period from 31 October 2011 to 31 December 2012 (inclusive), in the case where the Participant enters into a Transaction:

(a)   as an “ETF Special Trade” in accordance with Rule [3310] of the ASX Operating Rules and reported to ASX in accordance with Procedure 3310 of the ASX Operating Rules Procedures;

(b)   on the VolumeMatch Book in accordance with Rules [4200] to [4205] of the ASX Operating Rules;

(c)   as an “Index Replicating Special Crossing” in accordance with paragraph 5 of Part A of Procedure 4810 of the ASX Operating Rules Procedures, and reported to ASX in accordance with Procedure 3500 of the ASX Operating Rules Procedures, subject to the condition set out in paragraph 7 of this instrument;

(d)   as an “Underwriting Disposal Special Crossing” in accordance with paragraph 6 of Part A of Procedure 4810 of the ASX Operating Rules Procedures, and reported to ASX in accordance with Procedure 3500 of the ASX Operating Rules Procedures”, subject to the condition set out in paragraph 7 of this instrument;

(e)   as an “Exchange Approved Special Crossing” in accordance with paragraph 7 of Part A of Procedure 4810 of the ASX Operating Rules Procedures, and reported to ASX in accordance with Procedure 3500 of the ASX Operating Rules Procedures, subject to the condition set out in paragraph 7 of this instrument;

(f)    as a “Completion of Order Special Crossing” in accordance with paragraph 8 of Part A of Procedure 4810 of the ASX Operating Rules Procedures, and reported to ASX in accordance with Procedure 3500 of the ASX Operating Rules Procedures, subject to the condition set out in paragraph 7 of this instrument; or

(g)   as a “Crossing of a Derivative/Cash Combination” in accordance with paragraph 6 of Part B of Procedure 4060 of the ASX Operating Rules Procedures and reported to ASX in accordance with Procedure 3500 of the ASX Operating Rules Procedures.

5.      ASIC relieves a Participant from the obligation to comply with Rule 4.1.1(1) of the Competition Rules in the case where the Participant enters into a Transaction other than by matching of an Order on an Order Book and:

(a)   the Participant acts:

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

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

(b)   the Transaction is executed at a price per Equity Market Product which is:

(i)      the same as the Best Available Bid or Best Available Offer;

(ii)      higher than the Best Available Bid and lower than the Best Available Offer by one or more Price Steps; or

(iii)      at the Best Mid-Point, where the Best Mid-Point is not limited to standard Price Steps for the Equity Market Product.

6.      ASIC relieves a Participant from the obligation to comply with Rule 4.1.1(1) of the Competition Rules, in the case where the Participant enters into a Transaction under:

(a)   the terms of an Equity Market Product, including a redemption;

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

(c)   the delivery of an Equity Market Product under a Securities Lending Arrangement.

Conditions

7.      The relief in paragraph 4 of this instrument is subject to the condition that the Participant treat Transactions referred to in subparagraphs 4 (c), (d), (e) and (f) as if they are Special Crossings under the ASIC Market Integrity Rules (ASX Market) 2010.  

Interpretation

8.      In this instrument:

ASX means ASX Limited (ACN 008 624 691).

ASX Operating Rules means the operating rules of ASX as at the date of this instrument.

ASX Operating Rules Procedures means the procedures to the ASX Operating Rules as at the date of this instrument.

Best Available Bid, in relation to a Transaction, means the highest Pre-Trade Transparent Bid, for Equity Market Products in the same class as the Equity Market Products the subject of the Transaction, available across all Order Books other than the Order Book maintained by or on behalf of ASX and known as “PureMatch”, at the time the Transaction is executed.

Best Available Offer, in relation to a Transaction, means the lowest Pre-Trade Transparent Offer, for Equity Market Products in the same class as the Equity Market Products the subject of the Transaction, available across all Order Books other than the Order Book maintained by or on behalf of ASX and known as “PureMatch”, at the time the Transaction is executed.

Best Mid-Point means:

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

Bid has the meaning given by Rule 1.4.3 of the Competition Rules.

Equity Market Product has the meaning given by Rule 1.4.3 of the Competition Rules.

Off-Market Bid has the meaning given by Rule 1.4.3 of the Competition Rules.

Offer has the meaning given by Rule 1.4.3 of the Competition Rules.

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

Order Book has the meaning given by Rule 1.4.3 of the Competition Rules.

Participant means a participant of:

(a)   the financial market operated by ASX; or

(b)   the financial market operated by Chi-X Australia Pty Ltd (ACN 129 584 667).

Pre-Trade Transparent has the meaning given by Rule 1.4.3 of the Competition Rules.

Price Step has the meaning given by Rule 1.4.3 of the Competition Rules.

Principal has the meaning given by Rule 1.4.3 of the Competition Rules.

Securities Lending Arrangement has the meaning given by Rule 1.4.3 of the Competition Rules.

Transaction means a transaction in Equity Market Products.

VolumeMatch Book has the meaning given by Rule [7100] of the ASX Operating Rules.

Notes to ASIC Class Rule Waiver [CW 11/1103]

Note 1

ASIC Class Rule Waiver [CW 11/1103] (in force under Rule 1.2.1(1) of the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011) as shown in this compilation comprises that Class Rule Waiver amended as indicated in the tables below.

Table of Instruments

Table of Amendments

ad. = added or inserted     am. = amended     rep. = repealed     rs. = repealed and substituted