ASIC Market Integrity Rules (Securities Markets) Class Waiver 2018/258
About this compilation
Compilation No. 1
This is a compilation of ASIC Market Integrity Rules (Securities Markets) Class Waiver 2018/258 as in force on 3 November 2020. 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—Waivers
5 Transitional arrangements for Participants of the NSXA Market
6 Transitional arrangements for Participants of the SSX Market
7 Period during which the relief applies
Endnotes
Endnote 1—Instrument history
Endnote 2—Amendment history
Part 1—Preliminary
1 Name of legislative instrument
This is the ASIC Market Integrity Rules (Securities Markets) Class Waiver 2018/258.
3 Authority
This instrument is made under subrule 1.2.1(1) and Rule 1.2.3 of the ASIC Market Integrity Rules (Securities Markets) 2017 (Rules).
4 Interpretation
(1) In this instrument, Waived Rules means the following Parts of the Rules:
(a) Part 3.8 [Best execution obligation];
(b) Part 3.9 [Policies and procedures];
(c) Part 3.10 [Disclosure of best execution obligation];
(d) Part 3.11 [Evidencing execution performance];
(e) Part 5.1AA [Transactions to be under the operating rules of a Market operator];
(f) Part 5.9A [Trading Suspensions];
(g) Part 6.1 [Orders must be Pre-Trade Transparent];
(h) Part 6.3 [Transactions must be post-trade transparent];
(i) Part 7.4 [Requirement to record and provide Regulatory Data].
(2) In this instrument, unless the contrary intention appears, capitalised terms have the same meaning as in the Rules.
(3) In this instrument, a reference to time is to the time in Sydney, Australia.
Part 2—Waivers
5 Transitional arrangements for Participants of the NSXA Market
(1) A Participant of the NSXA Market, other than an NSXA AOP Participant, does not have to comply with any provision of the Rules in connection with its activities or conduct in relation to the NSXA Market.
(2) An NSXA AOP Participant does not have to comply with any provision of the Rules in connection with its activities or conduct in relation to the NSXA Market other than, in connection with the use of the Participant’s system for Automated Order Processing on the NSXA Market, a provision of Part 5.5, 5.6 or 5.7 of the Rules.
(3) A Participant of the NSXA Market does not have to comply with any provision of the Waived Rules in connection with its activities or conduct in relation to the NSXA Market.
6 Transitional arrangements for Participants of the SSX Market
A Participant of the SSX Market does not have to comply with any provision of the Waived Rules in connection with its activities or conduct in relation to the SSX Market.
7 Period during which the relief applies
(1) The relief in subsections 5(1) and 5(2) applies until 5 November 2018.
(2) The relief in subsection 5(3) applies from 5 November 2018 until 16 November 2022.
(3) The relief in section 6 applies until 16 November 2022.
Endnotes
Endnote 1—Instrument history
Instrument number | Date of FRL registration | Date of commencement | Application, saving or transitional provisions |
2018/258 | 24/4/2018 (see F2018L00511) | 25/4/2018 | |
2020/877 | 2/11/2020 (see F2020L01387) | 3/11/2020 | - |
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 |
Subsection 7(2) | am. 2020/877 |
Subsection 7(3) | am. 2020/877 |
Overview
The ASIC Market Integrity Rules (Securities Markets) Class Waiver 2018/258 was enacted to address transitional issues for participants of the National Securities Exchange (NSX) and the Sydney Stock Exchange (SSX) markets. This legislative instrument was made by the Australian Securities and Investments Commission (ASIC) under the authority granted by the ASIC Market Integrity Rules (Securities Markets) 2017. The primary policy objective of this waiver is to provide temporary relief to market participants as they transition to the new integrated market system. This waiver exempts NSX and SSX market participants from certain compliance requirements under the ASIC Market Integrity Rules during the transition period, allowing them to adapt to the new market structure without immediate regulatory burdens. The relief applies to specified periods, with different start and end dates for various provisions, to ensure a smooth transition for market participants.
Scope and Application
The ASIC Market Integrity Rules (Securities Markets) Class Waiver 2018/258 provides temporary exemptions from certain provisions of the ASIC Market Integrity Rules (Securities Markets) 2017 (Rules) for participants of the NSXA Market and the SSX Market, to facilitate a smooth transition during a specified period. The waiver applies to all participants of the NSXA Market and SSX Market, excluding NSXA Authorised Operator Participants who are exempt from compliance with specific provisions related to their use of automated order processing systems on the NSXA Market. The exemptions cover particular sections of the Rules, such as best execution obligations, policies and procedures, disclosure requirements, transaction transparency, and regulatory data recording. The relief is geographically limited to the Australian securities markets governed by the ASIC Market Integrity Rules and operates within the Commonwealth jurisdiction. The waiver does not apply to any other entities or activities outside the scope of the NSXA Market and SSX Market. The transitional relief is set to expire at different dates, with some provisions ceasing on 5 November 2018 and others on 16 November 2022, as outlined in the legislation. The waiver may be amended or extended through subordinate instruments, which may provide further clarification or adjustments to the scope and duration of the exemptions.
Key Provisions
The ASIC Market Integrity Rules (Securities Markets) Class Waiver 2018/258 (the 'Waiver') provides certain exemptions to Participants of the NSXA Market and SSX Market from specific provisions of the ASIC Market Integrity Rules (Securities Markets) 2017 (the 'Rules'). Under this Waiver, Participants of the NSXA Market, excluding NSXA AOP Participants, are exempt from compliance with any Rules relating to their activities or conduct on the NSXA Market (section 5(1)). NSXA AOP Participants are exempt from compliance with any Rules except those in Parts 5.5, 5.6, and 5.7 of the Rules in relation to the use of their Automated Order Processing system (section 5(2)). Participants of the SSX Market are exempt from compliance with the Waived Rules in relation to their activities or conduct on the SSX Market (section 6). The Waived Rules include obligations such as best execution, policies and procedures, disclosure, transaction evidence, market operator rules, trading suspensions, pre-trade and post-trade transparency, and regulatory data recording and reporting (section 4). The relief provided by this Waiver applies until specific dates, with the exemptions for NSXA AOP Participants lasting until 16 November 2022 (section 7).
The Waiver imposes specific obligations on Participants of the NSXA and SSX Markets by exempting them from certain Rules during the transitional period. NSXA Participants must ensure that their activities and conduct are compliant with all Rules except as specifically exempted by this Waiver. NSXA AOP Participants must additionally ensure compliance with Parts 5.5, 5.6, and 5.7 of the Rules in relation to their Automated Order Processing systems. SSX Participants must ensure compliance with all Rules except those specified in the Waived Rules. These obligations are in place to facilitate a smooth transition while maintaining the integrity of the securities markets.
Breaches of the Rules not exempted by this Waiver may result in various civil and criminal consequences. For instance, failing to meet best execution obligations can lead to civil penalties, including fines and compensation orders. Non-compliance with transparency rules may also result in similar penalties. Additionally, serious breaches could lead to criminal charges, which may include imprisonment and fines. The exact penalties depend on the nature and severity of the breach, but they can be significant, reflecting the importance of market integrity and investor protection.