ASIC Class Rule Waiver [CW 14-1091]
About this compilation
Compilation No. 2
This is a compilation of ASIC Class Rule Waiver [CW 14-1091] as in force on 30 June 2017. 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.
Australian Securities and Investment Commission
ASIC Market Integrity Rules (ASX Market) 2010 – Rule 3.4.1
Class Rule Waiver
Enabling Provision
- The Australian Securities and Investments Commission (ASIC) makes this instrument under Rule 1.2.1 of the ASIC Market Integrity Rules (ASX Market) 2010 (ASX Rules).
Title
2. This instrument is ASIC Class Rule Waiver [CW 14-1091].
When this waiver applies
4. The relief in paragraph 5 of this instrument applies when:
(a) the client is not a Retail Client; and
(b) the Market Transaction is in respect of a Product which is a Derivatives Market Contract.
Waiver
5. ASIC relieves a Market Participant from the obligation to comply with Rule 3.4.1, subject to the conditions in paragraph 7 and 8 of this instrument.
Period during which this waiver applies
6. The relief in paragraphs 5 of this instrument applies from the date this instrument commences under paragraph 3 until 30 June 2020.
Conditions
7. The Market Participant has notified the client before entering a Trading Message on the client’s behalf that Market Transactions effected for the client are subject to:
(i) the directions, decisions and requirements of the Market Operator, the ASX Rules, the Market Operating Rules, the Clearing Rules and where relevant, the Settlement Rules;
(ii) the customs and usages of the Market; and
(iii) the correction of errors and omissions; and
8. A Market Participant must keep a record of the notification referred to in condition 7 of this instrument.
Interpretation
9. In this instrument, unless the contrary intention appears, capitalised terms have the meaning given by the ASX Rules
Notes to ASIC Class Rule Waiver [CW 14-1091]
Note 1
ASIC Class Rule Waiver [CW 14-1091] (in force under Rule 1.2.1 of the ASIC Market Integrity Rules (ASX Market) 2010) as shown in this compilation comprises that Class Rule Waiver amended as indicated in the tables below.
Table of Instruments
Instrument number | Date of FRL registration | Date of commencement | Application, saving or transitional provisions |
[CW 14-1091] | 28/10/2014 (see F2014L01425) | 28/10/2014 | |
[CW 16-0359] | 29/4/2016 (see F2016L00599) | 30/4/2016 | - |
[CW 17/0617] | 29/6/2017 (see F2017L00794) | 30/6/2017 | - |
Table of Amendments
ad. = added or inserted am. = amended LA = Legislation Act 2003 rep. = repealed rs. = repealed and substituted
Provision affected | How affected |
Para 3........... | rep. s48D LA |
Para 6........... | am. [CW 16-0359] and [CW 17/0617] |
Overview
The ASIC Class Rule Waiver [CW 14-1091] was enacted in 2014 by the Australian Securities and Investments Commission (ASIC) under Rule 1.2.1 of the ASIC Market Integrity Rules (ASX Market) 2010. The waiver was introduced to address the need for flexibility in the regulatory environment concerning market transactions for non-retail clients involving derivatives market contracts. This instrument provides relief from certain obligations under Rule 3.4.1 for market participants under specific conditions, thereby enhancing the operational efficiency and compliance flexibility for market transactions within the ASX Market. The waiver is designed to accommodate the unique requirements of derivative market contracts while ensuring that market integrity is maintained through compliance with market rules and operator requirements. The waiver is in effect from its commencement on 28 October 2014 until 30 June 2020, subject to certain conditions and amendments.
Scope and Application
The ASIC Class Rule Waiver [CW 14-1091] applies to Market Participants who are subject to the ASIC Market Integrity Rules (ASX Market) 2010, specifically under Rule 1.2.1. This waiver is in effect for Market Transactions concerning Derivatives Market Contracts, provided the client involved is not a Retail Client. The relief offered under this waiver exempts Market Participants from complying with Rule 3.4.1, subject to certain conditions and until 30 June 2020. These conditions include the requirement for Market Participants to notify clients before entering a Trading Message that the transactions are subject to various rules and practices, and to maintain records of such notifications. The waiver’s scope is confined to the Australian Securities Exchange (ASX) market and is subject to modifications through subordinate instruments, as evidenced by subsequent amendments listed in the endnotes.
Key Provisions
The ASIC Class Rule Waiver [CW 14-1091] provides relief to Market Participants from the obligations imposed by Rule 3.4.1 of the ASX Rules (section 5). This waiver applies when the client is not a Retail Client and the Market Transaction involves a Derivatives Market Contract (section 4). The relief offered by this waiver exempts Market Participants from certain compliance requirements but only under specific conditions (section 7). These conditions include notifying the client that the Market Transactions are subject to the directives and rules of the Market Operator, ASX Rules, Market Operating Rules, Clearing Rules, Settlement Rules, and market customs and usages (section 7(i)–(iii)). Additionally, Market Participants must maintain a record of such notification (section 8).
The waiver imposes several obligations on Market Participants. They must ensure that clients are adequately informed about the regulatory environment and market practices governing their transactions (section 7). Furthermore, Market Participants are required to keep records of the notifications provided to clients as mandated by section 8 of the waiver. Compliance with these obligations is essential to ensure transparency and adherence to the regulatory framework governing financial market transactions.
Failure to comply with the conditions set out in the ASIC Class Rule Waiver [CW 14-1091] can result in significant consequences. While the legislation does not explicitly state penalties, breaches of the ASX Rules or non-compliance with ASIC's requirements generally attract severe sanctions. These may include fines, legal actions, or even revocation of licenses, depending on the severity and impact of the breach. The precise penalties would be determined in the context of broader financial regulatory laws and ASIC's enforcement powers.