ASIC Market Integrity Rules (Securities Markets) Determination 2018/546

Administered by Department of the Treasury

Legislation au F2018L00816 Not in force Legislative Instrument

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EXPLANATORY STATEMENT for
ASIC Market Integrity Rules (Securities Markets) Determination 2018/546 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547

Prepared by the Australian Securities and Investments Commission

 

Corporations Act 2001

 

The Australian Securities and Investments Commission (ASIC) makes ASIC Market Integrity Rules (Securities Markets) Determination 2018/546 (the Determination) and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547 (the Repeal Instrument) under subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017 (the Rules).

Under subrule 6.2.1(4), ASIC may determine Tier 1 Equity Market Products and Tier 2 Equity Market Products in writing.

Under subrule 6.2.1(5), an instrument referred to in subrule (4) takes effect from 20 business days following the date the instrument is registered.

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.

Under subsection 13(1) of the Legislation Act 2003, if enabling legislation confers on a person the power to make a legislative instrument or notifiable instrument, then unless the contrary intention appears, the Acts Interpretation Act 1901 applies to any instrument so made as if it were an Act and as if each provision of the instrument were a section of the Act. Accordingly, the power under subrule 6.2.1(4) of the Rules to determine Tier 1 Equity Market Products and Tier 2 Equity Market Products in writing, includes a power to repeal such a determination.

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

 

  1.                                             Background

Chapter 6 of the Rules sets out market integrity rules relating to pre-trade transparency of Orders and post-trade transparency of transactions executed on or reported to a Market, including in relation to Equity Market Products. A ‘Block Trade’ is a key concept in Chapter 6 and has the meaning given by subrule 6.2.1(1).

For a transaction to be a Block Trade, among other things, the consideration for the transaction may not be less than consideration thresholds set out in paragraph 6.2.1(1)(c) of the Rules, which differ according to whether the Relevant Product is a Tier 1 Equity Market Product, Tier 2 Equity Market Product, Tier 3 Equity Market Product or a CGS Depository Interest.

Under subrule 6.2.1(4) of the Rules, ASIC may determine Tier 1 Equity Market Products and Tier 2 Equity Market Products by instrument in writing.

Rule 6.2.1 of the Rules is the successor to Rule 4.2.1 of the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 (Competition Rules) which was repealed on 7 May 2018 following consolidation of the pre-existing market integrity rules.

The Determination maintains ASIC’s policy of determining the allocation of Equity Market Products to tiers based on a periodic calculation of 2.5% of each product’s average daily value transacted in the preceding six-month period (or other material number of Trading Days if the product was not quoted during the entire period).

Atlas Arteria (formerly Macquarie Atlas Roads), the dual-stapled ASX-listed security which comprises Atlas Arteria Limited (formerly Macquarie Atlas Roads Limited) and Atlas Arteria International Limited (formerly Macquarie Atlas Roads International Limited), has changed its stock code from MQA to ALX effective from 28 May 2018. The Determination incorporates this change in stock code.

The Repeal Instrument, together with the Determination, supersede and repeal the determinations in ASIC Market Integrity Rules (Securities Markets) Determination 2018/445 (Superseded Determination).

 

2.                                                Purpose of the instruments

The purpose of the Determination is to determine, for the purposes of paragraph 6.2.1(1)(c) of the Rules and with effect from its commencement, the Tier 1 Equity Market Products and the Tier 2 Equity Market Products, incorporating the change of Atlas Arteria’s stock code from MQA to ALX.

The purpose of the Repeal Instrument is to repeal the Superseded Determination, which will be superseded by the Determination upon its commencement.

The Determination and the Repeal Instrument maintain the existing policy settings under ASIC Market Integrity Rules (Securities Markets) Determination 2018/445.

 

3.                                                Operation of the instruments

ASIC Market Integrity Rules (Securities Markets) Determination 2018/546

Name of legislative instrument

Section 1 provides that the instrument is the ASIC Market Integrity Rules (Securities Markets) Determination 2018/546.

Commencement

Section 2 of the instrument provides that the instrument commences on the later of:

(a)  23 July 2018; and

(b) 20 business days after 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 subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities 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.

Subsection 4(2) of the instrument provides that ‘stock code’, in relation to an Equity Market Product, means the unique symbol assigned to the Equity Market Product under Rule 9.2.3 of the Rules.

Tier 1 Equity Market Products and Tier 2 Equity Market Products

Subsection 5(1) of the instrument provides that each Equity Market Product whose stock code is set out in the table in Schedule 1 to the instrument is a Tier 1 Equity Market Product.

Subsection 5(2) of the instrument provides that each Equity Market Product whose stock code is set out in the table in Schedule 2 to the instrument is a Tier 2 Equity Market Product.

Schedule 1

Schedule 1 provides that a specified Equity Market Product (referred to by its stock code) is a Tier 1 Equity Market Product.

Schedule 2

Schedule 2 provides that a specified Equity Market Product (referred to by its stock code) is a Tier 2 Equity Market Product.

ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547

Name

Section 1 of the instrument provides that the instrument is the ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547.

Commencement

Section 2 of the instrument provides that the instrument commences on the day that is the later of:

(a)  23 July 2018; and

(b) the day that is 20 business days after 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 subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017.

Schedule

Section 4 of the instrument provides that each instrument that is specified in Schedule 1 to this 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 (Securities Markets) Determination 2018/445 is repealed.

 

4.                                                Consultation

In November 2010 and October 2011, ASIC consulted on its policy of determining the allocation of Equity Market Products to tiers based on a periodic calculation of average daily value in Consultation Paper 145 Australian equity market structure: Proposals and with further refinements in Consultation Paper 168 Australian equity market structure: Further proposals respectively.

There has been no consultation on the Determination or the Repeal Instrument because they are minor and machinery in nature.

A Regulatory Impact Statement is not required for the instruments as they maintain the existing policy settings in force under ASIC Market Integrity Rules (Securities Markets) Determination 2018/445 and its predecessors.

 


Statement of Compatibility with Human Rights

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

 

ASIC Market Integrity Rules (Securities Markets) Determination 2018/546 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547

ASIC Market Integrity Rules (Securities Markets) Determination 2018/546 (the Determination) and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547 (the Repeal Instrument) are 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

Chapter 6 of the ASIC Market Integrity Rules (Securities Markets) 2017 (the Rules) sets out market integrity rules relating to pre-trade transparency of Orders and post-trade transparency of transactions executed on or reported to a Market, including in relation to Equity Market Products. A ‘Block Trade’ is a key concept in Chapter 6 and has the meaning given by subrule 6.2.1(1).

For a transaction to be a Block Trade, among other things, the consideration for the transaction may not be less than consideration thresholds set out in paragraph 6.2.1(1)(c) of the Rules, which differ according to whether the Relevant Product is a Tier 1 Equity Market Product, Tier 2 Equity Market Product, Tier 3 Equity Market Product or a CGS Depository Interest.

Under subrule 6.2.1(4) of the Rules, ASIC may determine Tier 1 Equity Market Products and Tier 2 Equity Market Products by instrument in writing.

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.

Under subsection 13(1) of the Legislation Act 2003, if enabling legislation confers on a person the power to make a legislative instrument or notifiable instrument, then unless the contrary intention appears, the Acts Interpretation Act 1901 applies to any instrument so made as if it were an Act and as if each provision of the instrument were a section of the Act. Accordingly, the power under subrule 6.2.1(4) of the Rules to determine Tier 1 Equity Market Products and Tier 2 Equity Market Products in writing, includes a power to repeal such a determination.

The Determination maintains ASIC’s policy of determining the allocation of Equity Market Products to tiers based on a periodic calculation of 2.5% of each product’s average daily value transacted in the preceding six-month period (or other material number of Trading Days if the product was not quoted during the entire period).

The Repeal Instrument repeals the ASIC Market Integrity Rules (Securities Markets) Determination 2018/445 (Superseded Determination). The Determination will supersede the Superseded Determination upon its commencement.

 

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 (Securities Markets) Determination 2018/546 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547 were enacted by the Australian Securities and Investments Commission (ASIC) under subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017. The instruments were introduced to address the need to update the allocation of Equity Market Products to tiers based on their average daily value transacted over the preceding six months. The Determination specifies the Equity Market Products classified as Tier 1 and Tier 2, while the Repeal Instrument removes the previous determinations to prevent redundancy and ensure that the rules remain current and applicable. ASIC's overarching policy objective is to maintain market integrity and transparency, particularly concerning the pre-trade and post-trade transparency of transactions on equity markets.

Scope and Application

The ASIC Market Integrity Rules (Securities Markets) Determination 2018/546 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547 are legislative instruments made by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. The Determination serves to identify specific equity market products as Tier 1 or Tier 2, incorporating a change in the stock code of Atlas Arteria from MQA to ALX. This determination is crucial for the purposes of market integrity rules as outlined in Chapter 6 of the ASIC Market Integrity Rules (Securities Markets) 2017, particularly in relation to the concept of 'Block Trades' and their associated consideration thresholds. The Repeal Instrument, on the other hand, repeals the ASIC Market Integrity Rules (Securities Markets) Determination 2018/445, which will be superseded by the Determination upon its commencement. Both instruments maintain existing policy settings, as per ASIC’s periodic calculation of average daily value transacted for equity market products. The instruments apply nationally and are governed by the Acts Interpretation Act 1901 and the Legislation Act 2003, ensuring they are treated similarly to Acts of Parliament. There are no exclusions or exemptions stated in the instruments, and they do not engage any of the applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The ASIC Market Integrity Rules (Securities Markets) Determination 2018/546 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547 are legislative instruments made by the Australian Securities and Investments Commission (ASIC) under subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017. The Determination, detailed in Section 1, identifies the Tier 1 and Tier 2 Equity Market Products by specifying their stock codes in Schedules 1 and 2 respectively. The Commencement sections of both instruments provide that they take effect on the later of 23 July 2018, or 20 business days after registration on the Federal Register of Legislation. The Authority section indicates that these instruments are made under subrule 6.2.1(4) of the Rules. Interpretation provisions clarify that capitalised terms have the same meaning as in the Rules, unless otherwise specified. These instruments impose specific obligations on entities governed by the ASIC Market Integrity Rules. Firstly, they require adherence to the classification of Equity Market Products into Tier 1 and Tier 2 based on the criteria outlined in the Determination. This classification is pivotal for compliance with market integrity rules concerning pre-trade and post-trade transparency. Entities must ensure that transactions involving these products meet the specified consideration thresholds for Block Trades, as outlined in subrule 6.2.1(1)(c) of the Rules. Additionally, the instruments mandate the recognition of Atlas Arteria's new stock code, ALX, replacing the former MQA, effective from 28 May 2018. Failure to comply with the provisions set out in these instruments may result in legal consequences. The Corporations Act 2001 and other relevant legislation may impose penalties for non-compliance with market integrity rules. Although specific penalties are not detailed within the instruments themselves, violations of market integrity rules generally can result in significant fines and other sanctions. Additionally, non-compliance with the Determination and the Repeal Instrument may lead to administrative actions by ASIC, which could include further regulatory oversight, enforcement actions, or additional reporting requirements. In summary, the ASIC Market Integrity Rules (Securities Markets) Determination 2018/546 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/547 provide clear classifications for Equity Market Products, mandate adherence to specific consideration thresholds for Block Trades, and require recognition of Atlas Arteria’s new stock code. Compliance with these instruments is crucial for entities to maintain market integrity and avoid potential penalties and regulatory repercussions.

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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.