EXPLANATORY STATEMENT for
ASIC Market Integrity Rules (Futures Markets) Determination 2018/315
Prepared by the Australian Securities and Investments Commission
Corporations Act 2001
The Australian Securities and Investments Commission (ASIC) makes ASIC Market Integrity Rules (Futures Markets) Determination 2018/315 under subrule 5.2.1(5) of the ASIC Market Integrity Rules (Futures Markets) 2017 (the Rules).
Under subrule 5.2.1(5) of the Rules, and for the purposes of the obligation of a Market Participant who operates a Crossing System to make available Publicly Available Crossing System Information, ASIC may determine in writing the Crossing System codes referred to in subrule 5.2.1(2).
Capitalised terms in this Explanatory Statement refer to defined terms in the Rules.
- Background
As part of its supervisory responsibilities, ASIC reviewed the 14 market integrity rule books in force in late 2016 and identified the need to consolidate certain market integrity rule books which covered substantively similar existing obligations across like domestic licensed markets.
Following public consultation, ASIC made the Rules in November 2017. Generally, the Rules maintain the substance of the regulatory regime embodied in market integrity rules (the Pre-Commencement Market Integrity Rules) applicable prior to the commencement of the Rules, including the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 (Competition Rules).
The Rules will repeal the Pre-Commencement Market Integrity Rules on 7 May 2018.
Subrule 5.2.1(1) of the Rules requires a Market Participant that operates a Crossing System to make available Publicly Available Crossing System Information on a website that is publicly accessible and free of charge. Publicly Available Crossing System Information is defined in subrule 5.2.1(2) of the Rules and includes:
(a) the code identifying the Crossing System; and
(b) if Orders may be executed or matched in another Crossing System or in the Market Participant’s Crossing System with Orders received from a Crossing System operated by another Market Participant—the code identifying the other Crossing System.
Under subrule 5.2.1(5) of the Rules, ASIC may determine in writing the Crossing System codes referred to in subrule 5.2.1(2).
Rule 5.2.1 of the Rules is the successor to Rule 4A.3.1 of the Competition Rules. Under subrule 4A.3.1(5) of the Competition Rules, ASIC may determine and publish on its website a notification of the Crossing System codes referred to in subrule 4A.3.1(2). ASIC published such notification on its website at http://www.asic.gov.au/crossing-systems.
In the instrument, the determinations of Crossing System codes under subrule 5.2.1(5) of the Rules replicate the determinations in the notification on ASIC’s website.
2. Purpose of the instrument
The purpose of the instrument is to determine, for the purposes of subrule 5.2.1(5) of the Rules, the code for identifying Crossing Systems.
The instrument maintains the existing policy settings under the Competition Rules by replicating the determinations made under those rules.
3. Operation of the instrument
Name of legislative instrument
Section 1 provides that the instrument is the ASIC Market Integrity Rules (Futures Markets) Determination 2018/315.
Commencement
Section 2 of the instrument provides that the instrument commences on the later of 7 May 2018 and the day after the instrument is registered on the Federal Register of Legislation.
Authority
Section 3 of the instrument provides that the instrument is made under subrule 5.2.1(5) of the ASIC Market Integrity Rules (Futures Markets) 2017.
Interpretation
Section 4(1) of the instrument provides that, unless the contrary intention appears, capitalised terms have the same meaning as in the Rules.
Crossing System codes
Section 5 of the instrument provides that, for the purposes of subrule 5.2.1(5) of the Rules, the code for identifying a Crossing System described in columns 2 and 3 of the table in Schedule 1 is the code specified in column 4 of the table.
Schedule 1
Schedule 1 of the instrument sets out a table in which a code is specified in column 4 for each Crossing System described in columns 2 and 3 of the table.
4. Consultation
There has been no consultation because the instrument is minor and machinery in nature.
A Regulatory Impact Statement is not required for this instrument as it maintains under the Rules the existing policy settings in force under the Pre-Existing Market Integrity Rules.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
ASIC Market Integrity Rules (Futures Markets) Determination 2018/315
ASIC Market Integrity Rules (Futures Markets) Determination 2018/315 (the instrument) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
Subrule 5.2.1(1) of the ASIC Market Integrity Rules (Futures Markets) 2017 (the Rules) requires a Market Participant that operates a Crossing System to make available Publicly Available Crossing System Information on a website that is publicly accessible and free of charge. Publicly Available Crossing System Information is defined in subrule 5.2.1(2) of the Rules and includes:
(c) the code identifying the Crossing System; and
(d) if Orders may be executed or matched in another Crossing System or in the Market Participant’s Crossing System with Orders received from a Crossing System operated by another Market Participant—the code identifying the other Crossing System.
Under subrule 5.2.1(5) of the Rules, ASIC may determine in writing the Crossing System codes referred to in subrule 5.2.1(2).
Rule 5.2.1 of the Rules is the successor to Rule 4A.3.1 of the Competition Rules. Under subrule 4A.3.1(5) of the Competition Rules, ASIC may determine and publish on its website a notification of the Crossing System codes referred to in subrule 4A.3.1(2). ASIC published such notification on its website at http://www.asic.gov.au/crossing-systems.
In the instrument, the determinations of Crossing System codes under subrule 5.2.1(5) of the Rules replicate the determinations in the notification on ASIC’s website.
Human rights implications
This legislative instrument does not engage any of the applicable rights or freedoms.
Conclusion
This legislative instrument is compatible with human rights as it does not raise any human rights issues.
Australian Securities and Investments Commission