ASIC Market Integrity Rules (Securities Markets) Determination 2026/444

Administered by Department of the Treasury

Legislation au F2026L00660 In force Legislative Instrument

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Explanatory Statement

 

ASIC Market Integrity Rules (Securities Markets) Determination 2026/444

This is the Explanatory Statement for ASIC Market Integrity Rules (Securities Markets) Determination 2026/444 (the Instrument).

The Explanatory Statement is approved by the Australian Securities and Investments Commission (ASIC).

Summary

  1.                    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).
  2.                    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.
  3.                    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.
  4.                   The Instrument maintains ASIC’s policy of determining the allocation of Equity Market Products to Tier 1 and Tier 2 based on a periodic calculation of 2.5% of each product’s average daily value transacted in the preceding six-month period, of at least $1 million for Tier 1 Equity Market Products and $500,000 for Tier 2 Equity Market Products (or other material number of Trading Days if the product was not quoted during the entire period).
  5.                    The Instrument, supersedes and repeals the determinations in ASIC Market Integrity Rules (Securities Markets) Determination 2026/166 (Superseded Instrument).

 

 

Purpose of the instrument

  1.                    The purpose of the Instrument 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.
  2.                    The Instrument also repeals the Superseded Instrument, which will be superseded by the Instrument upon its commencement.
  3.                    The Instrument maintains the existing policy settings under the Superseded Instrument.

Consultation

  1.                    ASIC has not undertaken any consultation on the Instrument because it maintains ASIC’s methodology for the block trading framework for Equity Market Products. ASIC has previously consulted extensively in order to develop that methodology.
  2.               In November 2010, ASIC consulted on its methodology for determining the allocation of Equity Market Products to tiers of $2.5 million, $1 million, $500,000 and $200,000 based on a periodic calculation of 2.5% of average daily value traded: Consultation Paper 145 Australian equity market structure: Proposals. There was insufficient support for the upper and lower tiers and ASIC signalled its intent to consult further.
  3.               In October 2011, ASIC consulted on further refinements and thresholds set at $1 million, $500,000 and $200,000 based on $2.5% of average daily value traded: Consultation Paper 168 Australian equity market structure: Further proposals. This framework was adopted and incorporated into the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011.
  4.               In November 2017, ASIC released Consultation Paper 277 Proposals to Consolidate the Market Integrity Rules. ASIC consulted on adopting the definition of block trade and existing methodology for allocating Equity Market Products to tiers used in Rule 4.2.1 of ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 for the proposed ASIC Market Integrity Rules (Securities Markets) 2017. All respondents supported the proposal and there was no submission suggesting that the allocation methodology was not fit for purpose or should be amended.
  5.               ASIC considers the Instrument to be minor and machinery because it is re-made each quarter using a standardised procedure to update the list of equity market products assigned to each tier to reflect recent market conditions, based on trading activity over the previous six calendar months.
  6.               ASIC will periodically assess whether the block trading framework remains fit for purpose, having regard to evolving market conditions. The matters ASIC will have regard to include, but are not limited to, trends in block trading in equity markets, the level of trading activity occurring on-market, and the level of market volatility. If ASIC considers it is appropriate to amend the block trading framework to support the fair, orderly and transparent operation of equity markets, then ASIC presently intends to consult on any proposed changes that may be required in the future.
  7.               A Regulatory Impact Statement is not required for the Instrument as it maintains the existing policy settings in force under the Superseded Instrument and its predecessors.

Operation of the instrument

  1.               Name of legislative instrument

Section 1 provides that the name of the Instrument is the ASIC Market Integrity Rules (Securities Markets) Determination 2026/444.

  1.               Commencement

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

  1.    7 July 2026; and
  2.    20 business days following the day the Instrument is registered on the Federal Register of Legislation.
  1.               Authority

Section 3 of the Instrument provides that the Instrument is made under subrule 6.2.1(4) of the Rules.

  1.               Simplified outline of this instrument

Section 4 of the Instrument provides a simplified outline for the Instrument. Its purpose is to assist readers in understanding the substantive provisions. However, the outline is not intended to be comprehensive. Readers should rely on the substantive provisions when considering the instrument’s effect.

  1.               Interpretation

Subsection 5(1) of the Instrument provides that, unless the contrary intention appears, capitalised terms have the same meaning as in the Rules.

Subsection 5(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.

  1.               Tier 1 Equity Market Products and Tier 2 Equity Market Products

Subsection 6(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 6(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.

  1.               Repeal

Section 7 of the Instrument provides that each Instrument that is specified in Schedule 3 to this Instrument is repealed as set out in the applicable items in Schedule 3, and any other item in Schedule 3 has effect according to its terms.

  1.               Schedule 1

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

  1.               Schedule 2

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

  1.               Schedule 3

Item 1 of Schedule 3 to the Instrument specifies that the whole of the ASIC Market Integrity Rules (Securities Markets) Determination 2026/166 is repealed.

Legislative instrument and primary legislation

 

  1.               The subject matter and policy implemented by this Instrument is more appropriate for a legislative instrument rather than primary legislation (or delegated legislation) because the Instrument is made under a power specifically delegated to ASIC which periodically requires a detailed, technical assessment of variable market activity that is best suited for ASIC to undertake rather than Parliament. The Instrument operates to fill in a more comprehensive regulatory framework that sits alongside the primary law.

Legislative authority

 

  1.               ASIC makes the Instrument under subrule 6.2.1(4) of the Rules.
  2.               Under subrule 6.2.1(4), ASIC may determine Tier 1 Equity Market Products and Tier 2 Equity Market Products in writing.
  3.               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.
  4.               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.
  5.               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.
  6.               Capitalised terms in this Explanatory Statement refer to defined terms in the Rules.
  7.               The Instrument is a disallowable legislative instrument.

Statement of compatibility with human rights

  1.               The Explanatory Statement for a disallowable legislative instrument must contain a Statement of Compatibility with Human Rights under subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011. A Statement of Compatibility with Human Rights is in the Attachment.

Attachment

Statement of Compatibility with Human Rights

 

This Statement of Compatibility with Human Rights is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

ASIC Market Integrity Rules (Securities Markets) Determination 2026/444

Overview

  1.              ASIC Market Integrity Rules (Securities Markets) Determination 2026/444 (the Instrument) 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).
  2.              The Instrument, supersedes and repeals the determinations in ASIC Market Integrity Rules (Securities Markets) Determination 2026/166.

Assessment of human rights implications

  1.              The Instrument does not engage any of the applicable rights or freedoms. It does not raise any human rights issues.

Conclusion

  1.              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

The ASIC Market Integrity Rules (Securities Markets) Determination 2026/444, issued by the Australian Securities and Investments Commission (ASIC), addresses the need for a transparent and fair securities market by determining the allocation of Equity Market Products to Tier 1 and Tier 2. The determination is based on the average daily value transacted over the previous six-month period, ensuring that the classification reflects current market conditions. This legislative instrument aims to maintain the existing policy settings while updating the list of products assigned to each tier to better align with recent market activities. By implementing this determination, ASIC continues its commitment to the orderly and efficient operation of the securities market, ensuring that the rules are periodically assessed and updated as necessary. The Instrument is a legislative instrument made under the authority of subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017. It supersedes and repeals the ASIC Market Integrity Rules (Securities Markets) Determination 2026/166, aligning with the policy of categorising Equity Market Products based on their trading activity. ASIC has not undertaken new consultation on this Instrument, as it maintains the existing methodology developed through previous consultations. This approach ensures that the framework for block trading remains effective in supporting the fair, orderly, and transparent operation of equity markets.

Scope and Application

The ASIC Market Integrity Rules (Securities Markets) Determination 2026/444 applies to entities and market participants within the securities markets regulated by the Australian Securities and Investments Commission (ASIC). The primary focus of the Instrument is to determine the allocation of Equity Market Products into Tier 1 and Tier 2 based on the average daily value transacted in the preceding six-month period, with a minimum requirement of at least $1 million for Tier 1 and $500,000 for Tier 2. This determination is critical for establishing the thresholds that define a 'Block Trade' under the ASIC Market Integrity Rules (Securities Markets) 2017. The Instrument operates nationally across Australia, and its application extends to all market participants executing or reporting transactions on Australian securities markets. Notably, the Instrument does not include specific exclusions or exemptions but operates within the broader framework of the Rules, which may contain various exceptions and conditions. The application of the Instrument can be extended or restricted through subordinate instruments, which may be issued to adapt to market changes or to refine the criteria for determining market product tiers.

Key Provisions

The ASIC Market Integrity Rules (Securities Markets) Determination 2026/444 (Instrument) outlines the criteria for determining which Equity Market Products are classified as Tier 1 or Tier 2 (sections 6(1) and 6(2)). This determination is based on a calculation of 2.5% of each product’s average daily value transacted over the preceding six-month period. This classification is essential for defining what constitutes a 'Block Trade' under the ASIC Market Integrity Rules (Securities Markets) 2017 (Rules) (subrule 6.2.1(1)). The Instrument specifies the Equity Market Products that fall into each tier by referencing their stock codes in Schedules 1 and 2, respectively. It also repeals the previous determinations made in ASIC Market Integrity Rules (Securities Markets) Determination 2026/166 (section 7). The Instrument imposes specific obligations on the entities and parties it governs. It mandates that Equity Market Products must meet the criteria outlined in the Instrument to be classified as Tier 1 or Tier 2. This includes ensuring that their average daily value transacted meets the thresholds specified in the Instrument. Additionally, the Instrument requires the periodic re-evaluation and update of the list of products in each tier to reflect the most recent market activity. This periodic assessment is crucial for maintaining the integrity and relevance of the market integrity rules. Failure to comply with the provisions of the Instrument may result in civil or criminal consequences, although the specific nature of these penalties is not detailed in the provided text. However, it is implied that non-compliance with market integrity rules could lead to enforcement actions by ASIC. The Instrument itself is a disallowable legislative instrument, meaning that it can be subject to scrutiny and disallowance by Parliament if deemed inappropriate. The potential penalties for non-compliance with the underlying Rules may include fines or other sanctions as prescribed by the relevant legislation. Overall, the Instrument plays a critical role in ensuring that Equity Market Products are appropriately classified, which in turn supports the transparency and integrity of securities markets in Australia. Compliance with the Instrument is essential for maintaining market confidence and ensuring that transactions are conducted in a fair and orderly manner.

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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.