ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2020/196

Administered by Department of the Treasury

Legislation au F2020L00230 Not in force Legislative Instrument

Legislation content

 

 

Explanatory Statement

 

ASIC Market Integrity Rules (Securities Markets) Determination 2020/195 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2020/196

This is the Explanatory Statement for ASIC Market Integrity Rules (Securities Markets) Determination 2020/195 (the Determination) and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2020/196 (the Repeal 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 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).

5. The Repeal Instrument, together with the Determination, supersede and repeal the determinations in ASIC Market Integrity Rules (Securities Markets) Determination 2019/1226 (Superseded Determination).

 

Purpose of the instrument

6. 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.

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 The purpose of the Repeal Instrument is to repeal the Superseded Determination, which will be superseded by the Determination upon its commencement.

8. The Determination and the Repeal Instrument maintain the existing policy settings under ASIC Market Integrity Rules (Securities Markets) Determination 2019/1226

Consultation

9. 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.

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

11. 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 2019/1226 and its predecessors.

Operation of the instrument

ASIC Market Integrity Rules (Securities Markets) Determination 2020/195

12 Name of legislative instrument

Section 1 provides that the instrument is the ASIC Market Integrity Rules (Securities Markets) Determination 2020/195.

13.  Commencement

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

(a)   3 April 2020; and

(b)   20 business days after the day the instrument is registered on the Federal Register of Legislation.

 

14. 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 (the Rules).

15. 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.

16. 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.

17. Schedule 1

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

18. 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 2020/196

19.  Name of legislative instrument

Section 1 of the instrument provides that the instrument is the ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2020/196.

20. Commencement

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

(a)   3 April 2020; and

(b)   the day that is 20 business days after the day the instrument is registered on the Federal Register of Legislation.

21. 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.

22. 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.

23. Schedule 1—Repeal

Item 1 of Schedule 1 to the instrument specifies that the whole of the ASIC Market Integrity Rules (Securities Markets) Determination 2019/1226 is repealed.

Legislative authority

 

24. ASIC makes the Determination and the Repeal Instrument under subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017 (the Rules).

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

26. 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.

27. 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.

28. 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.

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

30. The Determination and the Repeal Instrument are disallowable legislative instruments.

Statement of compatibility with human rights

31. 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 2019/1226 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2019/1227

Overview

1.  ASIC Market Integrity Rules (Securities Markets) Determination 2019/1226 (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).

2.  ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2019/1227, together with the Determination, supersede and repeal the determinations in ASIC Market Integrity Rules (Securities Markets) Determination 2019/896 (Superseded Determination).

Assessment of human rights implications

3. These legislative instruments do not engage any of the applicable rights or freedoms. They do not raise any human rights issues.

Conclusion

4. The instruments 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

The ASIC Market Integrity Rules (Securities Markets) Determination 2020/195 and the ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2020/196 were introduced to maintain the 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. These instruments, enacted by the Australian Securities and Investments Commission (ASIC) under the authority granted by the ASIC Market Integrity Rules (Securities Markets) 2017, aim to ensure consistency and predictability in the classification of equity market products. The Determination specifically identifies which equity market products are classified as Tier 1 or Tier 2, while the Repeal Instrument revokes the previous determinations to streamline regulatory oversight. The overall policy objective is to uphold market integrity by maintaining clear and updated rules regarding market transparency and the classification of significant transactions.

Scope and Application

The ASIC Market Integrity Rules (Securities Markets) Determination 2020/195 and ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2020/196 apply to entities and transactions within the securities markets regulated by the Australian Securities and Investments Commission (ASIC). These instruments pertain specifically to the classification of Equity Market Products into tiers, which is fundamental for determining the pre-trade and post-trade transparency requirements as outlined in Chapter 6 of the ASIC Market Integrity Rules (Securities Markets) 2017. The Determination identifies the Equity Market Products categorised as Tier 1 and Tier 2 based on their average daily transaction values over a six-month period, while the Repeal Instrument serves to annul the superseded ASIC Market Integrity Rules (Securities Markets) Determination 2019/1226. These instruments have a national jurisdictional reach, applying across all Australian securities markets. They do not include any exclusions, exemptions, or specific thresholds beyond those already defined in the Rules. The instruments are made under the authority of subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017, with the Determination specifying the Tier 1 and Tier 2 Equity Market Products via Schedules 1 and 2, respectively. The commencement of these instruments is set for 3 April 2020, or 20 business days after their registration on the Federal Register of Legislation, whichever is later.

Key Provisions

The primary operative sections of the ASIC Market Integrity Rules (Securities Markets) Determination 2020/195 (the Determination) and the ASIC Market Integrity Rules (Securities Markets) Repeal Instrument 2020/196 (the Repeal Instrument) concern the allocation of Equity Market Products to tiers based on their average daily value transacted over a specified period. Specifically, section 5 of the Determination lists the Equity Market Products designated as Tier 1, while section 5 of the Repeal Instrument lists those designated as Tier 2. Both instruments rely on the subrule 6.2.1(4) of the ASIC Market Integrity Rules (Securities Markets) 2017 (the Rules) to effect these determinations. The Determination maintains the policy of allocating products based on 2.5% of each product's average daily value transacted in the preceding six months, or an equivalent number of trading days if the product was not quoted throughout the period (section 4). The Repeal Instrument serves to repeal the ASIC Market Integrity Rules (Securities Markets) Determination 2019/1226, which will be superseded by the Determination upon its commencement (section 23). The Determination and the Repeal Instrument impose specific obligations on ASIC, primarily concerning the classification of Equity Market Products into tiers. Under the Determination, ASIC is required to list products as Tier 1 or Tier 2 based on the criteria outlined in the instrument (section 5). The Repeal Instrument mandates the repeal of the previous Determination (section 23). Both instruments must be registered on the Federal Register of Legislation, and they take effect 20 business days after registration (sections 2 and 20). The instruments are made under the authority of subrule 6.2.1(4) of the Rules, which allows ASIC to determine and alter the classification of Equity Market Products in writing (section 3). There are no explicit criminal or civil penalties outlined in the Determination or the Repeal Instrument. However, non-compliance with the Rules, which these instruments support, could lead to enforcement actions by ASIC, including fines and other sanctions under the Corporations Act 2001. The Determination and the Repeal Instrument themselves do not specify penalties for non-compliance but operate within the framework of the broader regulatory regime enforced by ASIC. The Determination and the Repeal Instrument are disallowable legislative instruments, meaning they can be subject to disallowance by resolution of either house of the Parliament (section 29). They are also subject to the Acts Interpretation Act 1901 and the Legislation Act 2003, which govern the interpretation and effect of legislative instruments (sections 27 and 28). The instruments are also covered by a Statement of Compatibility with Human Rights, which confirms that they do not engage any of the applicable rights or freedoms and are compatible with human rights (sections 31 to 33).

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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.