ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157

Administered by Department of the Treasury

Legislation au F2019L00033 Not in force Legislative Instrument

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EXPLANATORY STATEMENT for
ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157

Prepared by the Australian Securities and Investments Commission

 

Corporations Act 2001

 

The Australian Securities and Investments Commission (ASIC) makes the ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157 (the instrument) under subsection 798G(1) of the Corporations Act 2001 (the Act).

Under subsection 798G(1) of the Act, ASIC may, by legislative instrument, make rules (market integrity rules) that deal with:

(a)  the activities or conduct of licensed markets;

(b)  the activities or conduct of persons in relation to licensed markets;

(c)  the activities or conduct of persons in relation to financial products traded on licensed markets.

Under subsection 798G(3) of the Act, ASIC must not make a market integrity rule unless the Minister has consented, in writing, to the making of the rule.

Under subsection 33(3) of the Acts Interpretation Act 1901 where an Act confers a power to make, grant or issue any instrument (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

Capitalised terms in this Explanatory Statement refer to defined terms in the Act.

 

  1.                                             Background

The ASIC Market Integrity Rules (NSXA Market) 2010 (NSXA Rules) apply to the market (the NSXA Market) operated by National Stock Exchange of Australia Limited (NSXA) under Australian Market Licence (Stock Exchange of Newcastle Limited) 2002 and to participants of the NSXA Market.

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.

In Consultation Paper 277 Proposals to consolidate the ASIC market integrity rules (CP 277), ASIC proposed to consolidate its market integrity rules to create a single set of market integrity rules for the licensed markets known as the ASX, Chi-X, IR Plus, NSX and SSX Markets. ASIC also proposed to grant waivers to provide transitional relief to NSXA and participants of the NSXA Market from their obligations to comply with certain provisions of the consolidated rules.

In November 2017 ASIC made the ASIC Market Integrity Rules (Securities Markets) 2017 (Securities Markets Rules) and released Report 547 Response to submissions on CP 277 Proposals to consolidate the ASIC market integrity rules (REP 457).

As proposed in CP 277 and announced in REP 457, ASIC also granted transitional relief to:

  • NSXA in ASIC Waiver 18/260, which among other things relieved NSXA from its obligation to comply with the Securities Markets Rules until 5 November 2018; and
  • NSXA participants in ASIC Market Integrity Rules (Securities Markets) Class Waiver 2018/258, which among other things relieved a participant of the NSXA Market (other than an NSXA AOP Participant (as defined in Rule 1.4.3 of the Securities Markets Rules)) from its obligations to comply with the Securities Markets Rules until Monday 5 November 2018 in connection with its activities or conduct in relation to the NSXA Market. The class waiver provided similar transitional relief to an NSXA AOP Participant except that, in connection with the use of the NSXA AOP Participant’s system for automated order processing on the NSXA Market, the NSXA AOP Participant is not given relief from its obligations under the provisions of Part 5.5, 5.6 or 5.7 of the Securities Markets Rules.

NSXA and its participants have been required to comply with their obligations under the Securities Markets Rules since the end of the transition period on 5 November 2018. Accordingly, the NSXA Rules may now be repealed.

 

2.                                                Purpose of the instrument

The purpose of the instrument is to repeal the NSXA Rules, which are superseded by the Securities Markets Rules.

 

 

3.                                                Operation of the instrument

Name

Section 1 of the instrument provides that the instrument is the ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157.

Commencement

Section 2 of the instrument provides that the instrument commences on the day the instrument is registered on the Federal Register of Legislation.

Authority

Section 3 of the instrument provides that the instrument is made under subsection 798G(1) of the Corporations Act 2001.

Schedule

Section 4 of the instrument provides that each instrument that is specified in Schedule 1 to the instrument is repealed as set out in the applicable items in the Schedule.

Schedule 1—Repeal

Item 1 of Schedule 1 to the instrument specifies that the whole of the ASIC Market Integrity Rules (NSXA Market) 2010 is repealed.

 

4.                                                Consultation

ASIC consulted extensively with market operators, market participants and industry bodies before making the instrument.

The consultation period for CP 277 occurred between 24 January 2017 and 7 March 2017. ASIC held over 25 meetings with stakeholders during and following that period. In addition, ASIC consulted ASIC’s Market Advisory Panel on the proposals. ASIC received five non-confidential submissions and six confidential submissions to CP 277 from a broad range of stakeholders including from market participants, market operators and industry associations.

Consultation feedback from NSXA and other respondents supported the proposed transitional arrangements before repeal of the NSXA Rules.

The Office of Best Practice Regulation has assessed the proposals implemented by the Securities Markets Rules and the instrument as having a minor impact on business, community organisations or individuals and confirmed that no further analysis, in the form of a Regulatory Impact Statement is required (OBPR ID 22449).

The Minister consented in writing to the making of the instrument on 20 December 2018.


Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157

ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157 (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

Under subsection 798G(1) of the Act, ASIC may, by legislative instrument, make rules (market integrity rules) that deal with:

(a)  the activities or conduct of licensed markets;

(b) the activities or conduct of persons in relation to licensed markets;

(c)  the activities or conduct of persons in relation to financial products traded on licensed markets.

Under subsection 33(3) of the Acts Interpretation Act 1901 where an Act confers a power to make, grant or issue any instrument (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

The Instrument repeals the ASIC Market Integrity Rules (NSXA Market) 2010, which are superseded by the ASIC Market Integrity Rules (Securities Markets) 2017.

 

Human rights implications

These legislative instruments do not engage any of the applicable rights or freedoms.

 

Conclusion

These legislative instruments are compatible with human rights as they do not raise any human rights issues.

 

Australian Securities and Investments Commission

Overview

The ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157, made by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001, aims to repeal the ASIC Market Integrity Rules (NSXA Market) 2010. This repeal follows the consolidation of market integrity rules across various licensed markets, including the National Stock Exchange of Australia (NSXA), into a single set of rules, the ASIC Market Integrity Rules (Securities Markets) 2017. The transition to the new consolidated rules provided temporary relief to NSXA and its participants, allowing them time to adjust to the new regulatory framework. With the transition period concluded, the older NSXA-specific rules are now redundant and have been repealed to streamline regulatory obligations and ensure consistency across the markets. The repeal is intended to maintain efficient and effective market integrity standards across Australian financial markets. The instrument was developed after extensive consultation with stakeholders, including market operators, market participants, and industry bodies, as outlined in Consultation Paper 277. This consultation supported the proposed transitional relief and the eventual repeal of the NSXA-specific rules in favour of the new consolidated rules. The Office of Best Practice Regulation confirmed that the changes have a minor impact and do not require a Regulatory Impact Statement. The Minister's written consent was obtained before the instrument's creation, ensuring compliance with legislative requirements. The repeal instrument is compatible with human rights as it does not engage any of the applicable rights or freedoms recognised in the international instruments listed in the Human Rights (Parliamentary Scrutiny) Act 2011.

Scope and Application

The ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157 is an instrument made under the Corporations Act 2001 by the Australian Securities and Investments Commission (ASIC). This instrument repeals the ASIC Market Integrity Rules (NSXA Market) 2010, which previously governed the activities and conduct of the National Stock Exchange of Australia (NSXA) and its participants. The repeal is in light of the consolidation of market integrity rules for various licensed markets, including the ASX, Chi-X, IR Plus, NSX, and SSX Markets, into a single set of rules known as the ASIC Market Integrity Rules (Securities Markets) 2017. The NSXA Market, therefore, now falls under the broader Securities Markets Rules. The repeal applies to the NSXA Market and its participants, effectively transferring their obligations and compliance requirements to the consolidated Securities Markets Rules. The instrument includes a comprehensive schedule that details the specific rules being repealed, ensuring that there is no ambiguity regarding which regulations are superseded. This legislative measure is part of ASIC’s broader effort to streamline and standardise market integrity rules across Australian licensed markets, facilitating better oversight and compliance.

Key Provisions

The ASIC Market Integrity Rules (NSXA Market) Repeal Instrument 2018/1157 (the Instrument) primarily operates to repeal the ASIC Market Integrity Rules (NSXA Market) 2010, as they have been superseded by the ASIC Market Integrity Rules (Securities Markets) 2017. Section 1 of the Instrument names it, while Section 2 establishes its commencement date as the day it is registered on the Federal Register of Legislation. Section 3 confirms the Instrument's creation under subsection 798G(1) of the Corporations Act 2001, and Section 4 repeals the specified instruments as outlined in Schedule 1. Specifically, Item 1 of Schedule 1 repeals the ASIC Market Integrity Rules (NSXA Market) 2010 in its entirety. The Instrument imposes certain obligations and requirements on the parties it governs. Under subsection 798G(1) of the Corporations Act 2001, ASIC has the authority to create rules governing the activities or conduct of licensed markets, persons in relation to these markets, and persons in relation to financial products traded on these markets. These rules are intended to ensure market integrity and compliance. However, ASIC must obtain written consent from the Minister before making such rules, as required by subsection 798G(3) of the Act. The Instrument also mandates that NSXA and its participants comply with the ASIC Market Integrity Rules (Securities Markets) 2017 following the end of the transitional relief period on 5 November 2018. Failure to comply with the requirements set out in the Instrument or the Securities Markets Rules may result in various consequences. While the Instrument itself does not specify penalties, breaches of market integrity rules can lead to enforcement actions by ASIC, which may include fines, public censure, or other regulatory measures. The severity of penalties depends on the nature and extent of the breach, and they are outlined in the Securities Markets Rules and the Corporations Act 2001. Additionally, persistent or significant breaches could result in more severe consequences, including potential criminal charges for individuals involved in the misconduct. Overall, the Instrument aims to streamline and consolidate market integrity rules by repealing outdated provisions and ensuring that NSXA and its participants adhere to the updated Securities Markets Rules. This transition facilitates a more efficient regulatory framework while maintaining the integrity and stability of the financial markets.

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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.