ASIC Market Integrity Rules (Futures Markets) Determination 2018/315

Administered by Department of the Treasury

Legislation au F2018L00571 In force Legislative Instrument

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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.

 

  1.                                             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

Overview

The ASIC Market Integrity Rules (Futures Markets) Determination 2018/315 was enacted by the Australian Securities and Investments Commission (ASIC) to consolidate and streamline existing market integrity rules governing futures markets. The determination was made under subrule 5.2.1(5) of the ASIC Market Integrity Rules (Futures Markets) 2017, which itself was established following a review of the 14 market integrity rule books in force in late 2016. The primary objective of this instrument is to specify the codes used for identifying crossing systems as mandated by the rules, thereby maintaining consistency with the previous regulatory regime. The determinations in the instrument replicate those previously published by ASIC, ensuring continuity and clarity in the regulatory framework. This instrument was introduced to address the need for a more unified regulatory approach to market integrity in futures markets, enhancing transparency and efficiency for market participants.

Scope and Application

The ASIC Market Integrity Rules (Futures Markets) Determination 2018/315 applies to Market Participants who operate a Crossing System within Australia. This determination is made under subrule 5.2.1(5) of the ASIC Market Integrity Rules (Futures Markets) 2017, which mandates that these participants must make certain information publicly available on a website. Specifically, the rules require the disclosure of codes identifying the Crossing System and any other systems with which orders may be executed or matched. The instrument replicates existing policy settings from the superseded Competition Rules and maintains the same codes for identifying Crossing Systems, which are published on ASIC's website. The instrument does not extend or restrict application through subordinate instruments and is effective from the later of 7 May 2018 or the day after it is registered on the Federal Register of Legislation. It is compatible with human rights as it does not engage any of the applicable rights or freedoms.

Key Provisions

The ASIC Market Integrity Rules (Futures Markets) Determination 2018/315, under subrule 5.2.1(5) of the ASIC Market Integrity Rules (Futures Markets) 2017, outlines specific provisions regarding the identification of Crossing Systems used by Market Participants in futures markets. According to subrule 5.2.1(1), Market Participants who operate a Crossing System must make available Publicly Available Crossing System Information on a publicly accessible and free-of-charge website. This information includes the code identifying the Crossing System and, if applicable, the code identifying any other Crossing System with which orders can be executed or matched (subrule 5.2.1(2)). Subrule 5.2.1(5) allows ASIC to determine in writing the specific codes for these Crossing Systems. This instrument replicates the determinations previously made under Rule 4A.3.1 of the Competition Rules, as outlined in a notification published by ASIC on its website. The ASIC Market Integrity Rules (Futures Markets) Determination 2018/315 imposes specific obligations on Market Participants operating Crossing Systems. These obligations include the requirement to publicly disclose certain information about their Crossing Systems, as mandated by subrule 5.2.1(1). Specifically, Market Participants must ensure that the codes identifying their Crossing Systems and any other relevant systems are made available on a publicly accessible and free-of-charge website. Additionally, ASIC has the authority under subrule 5.2.1(5) to determine these codes, ensuring consistency and clarity in the identification of Crossing Systems. Under the ASIC Market Integrity Rules (Futures Markets) Determination 2018/315, there are no explicit offences, penalties, or civil/criminal consequences for breach of the provisions outlined in the instrument. However, failure to comply with the requirement to make available Publicly Available Crossing System Information could potentially lead to regulatory actions by ASIC under other provisions of the Corporations Act 2001 or the ASIC Market Integrity Rules (Futures Markets) 2017. Such actions may include fines, enforcement notices, or other regulatory measures deemed appropriate by ASIC. The specific penalties for breaches of these other provisions are not detailed in the instrument itself but would be governed by the broader legislative framework.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.