ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/489

Administered by Department of the Treasury

Legislation au F2018L00733 Not in force Legislative Instrument

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EXPLANATORY STATEMENT for
ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/489

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) Repeal Instrument 2018/489 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).

In order 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.

Each quarter ASIC determines the allocation of Equity Market Products to the three tiers based upon a calculation using each product’s average daily value transacted.

This instrument, together with ASIC Market Integrity Rules (Securities Markets) Determination 2018/445 (New Determination), supersede and repeal the determinations in ASIC Market Integrity Rules (Securities Markets) Determination 2018/206 (Superseded Determination).

 

2.                                                Purpose of the instrument

The purpose of the instrument is to repeal the Superseded Determination, which will be superseded by the New Determination upon its commencement.

 

3.                                                Operation of the instrument

Name

Section 1 of the instrument provides that the instrument is the ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/489.

Commencement

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

(a)  9 July 2018; and

(b) the day that is 20 business days after the day the intrument 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 2018/206 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 because the instrument is minor and machinery in nature.

A Regulatory Impact Statement is not required for this instrument as it does not change the existing policy settings under the 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 (Securities Markets) Repeal Instrument 2018/489

ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/489 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

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).

In order 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.

Each quarter ASIC determines the allocation of Equity Market Products to the three tiers based upon a calculation using each product’s average daily value transacted.

The instrument repeals the ASIC Market Integrity Rules (Securities Markets) Determination 2018/206 (Superseded Determination). ASIC Market Integrity Rules (Securities Markets) Determination 2018/445 (New Determination) will supersede the Superseded Determination upon its commencement.

 

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 (Securities Markets) Repeal Instrument 2018/489 was enacted by the Australian Securities and Investments Commission (ASIC) under subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017. This instrument repeals the ASIC Market Integrity Rules (Securities Markets) Determination 2018/206 (Superseded Determination), which will be superseded by the ASIC Market Integrity Rules (Securities Markets) Determination 2018/445 (New Determination) upon its commencement. The primary purpose of this instrument is to streamline and update the regulatory framework governing the classification of Equity Market Products into tiers based on their average daily value transacted, thereby ensuring that market integrity rules remain effective and relevant. This legislative instrument is compatible with human rights, as it does not raise any human rights issues.

Scope and Application

The ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/489, made by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001, serves to repeal the ASIC Market Integrity Rules (Securities Markets) Determination 2018/206. This instrument is integral to the ongoing management and regulation of market integrity in the securities markets, particularly in relation to the pre-trade transparency of orders and the post-trade transparency of transactions executed on or reported to a Market, as outlined in Chapter 6 of the ASIC Market Integrity Rules (Securities Markets) 2017. The instrument is designed to facilitate the quarterly determination of Equity Market Products' allocation to their respective tiers, which is based on calculations using each product’s average daily value transacted. The repeal of the Superseded Determination and its replacement by the New Determination ensures the continued alignment with current market conditions and regulatory standards. This legislative instrument applies nationally across Australia, impacting entities involved in securities markets and transactions, thereby ensuring uniform regulatory oversight.

Key Provisions

The ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2018/489, as detailed in section 1, is an instrument made under subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017 (paragraph 3). The instrument is designed to repeal the ASIC Market Integrity Rules (Securities Markets) Determination 2018/206, which will be superseded by the ASIC Market Integrity Rules (Securities Markets) Determination 2018/445 (New Determination) upon its commencement (paragraph 4 of Schedule 1). The instrument comes into effect on the later of 9 July 2018 or 20 business days after its registration on the Federal Register of Legislation (section 2). This repeal is part of the ongoing process of updating and refining the market integrity rules to maintain transparency and integrity in the securities markets. The obligations and requirements imposed by this Act primarily involve the quarterly determination of Equity Market Products and their allocation to the three tiers by ASIC, based on the average daily value transacted (section 6.2.1(1) of the Rules). This process ensures that the consideration thresholds for Block Trades are appropriately set according to whether the products are Tier 1, Tier 2, or Tier 3 Equity Market Products or CGS Depository Interests (paragraph 6.2.1(1)(c) of the Rules). The repeal of the Superseded Determination and the introduction of the New Determination reflect adjustments and refinements in the market integrity framework, aiming to enhance the transparency and efficiency of the securities markets. There are no explicit offences, penalties, or civil/criminal consequences for breach outlined in the text of this instrument. However, the overarching framework of the ASIC Market Integrity Rules (Securities Markets) 2017 includes provisions for enforcement actions against non-compliance with market integrity rules. Breaches of these rules could potentially lead to enforcement actions, which may include fines, public reprimands, and other penalties as prescribed under the Corporations Act 2001 and related regulations. The precise penalties for specific breaches would depend on the nature and severity of the non-compliance, as well as the discretion exercised by ASIC in enforcing the rules.

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Commercial Law
Financial Regulation
Instrument
Regulation
Concepts
Repeal & Amendment
Licensing & Registration
Reporting & Disclosure Obligations

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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.