{"id":"F2010L02212","name":"ASIC Market Integrity Rules (ASX 24 Market) 2010","slug":"asic-market-integrity-rules-asx-24-market-2010","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":124848,"registerId":"commonwealth-F2010L02212-current","compilationNumber":null,"startDate":"2026-04-03","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1.1","sectionType":"part","heading":"Preliminary","content":"Chapter 1: Introduction\n\n## Part 1.1 Preliminary\n\n### 1.1.1 Enabling legislation\n\nASIC makes this instrument under subsection 798G(1) of the Corporations Act.\n\n### 1.1.2 Title\n\nThis instrument is ASIC Market Integrity Rules (ASX 24 Market) 2010.\n\n### 1.1.3 Commencement\n\nThis instrument commences on the later of:\n\n    (a) the day the instrument is registered under the Legislative Instruments Act 2003; and\n    (b) the commencement of Schedule 1 to the Corporations Amendment (Financial Market Supervision) Act 2010.\n\n> Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at [http://www.frli.gov.au/](http://www.frli.gov.au/).\n\n### 1.1.4 Scope of these Rules\n\nThese Rules apply to:\n\n    (a) the activities or conduct of the Market;\n    (b) the activities or conduct of persons in relation to the Market;\n    (c) the activities or conduct of persons in relation to Financial Products traded on the Market.\n\n> Note: There is no penalty for this Rule.\n\n### 1.1.5 Entities that must comply with these Rules\n\nThe following entities must comply with these Rules:\n\n    (a) the Market Operator;\n    (b) Market Participants; and\n    (c) Other Regulated Entities;\n\nas specified in each Rule.\n\n> Note: There is no penalty for this Rule.\n\n### 1.1.6 Conduct by officers, employees or agents\n\nIn these Rules, conduct engaged in on behalf of a person:\n\n    (a) by an officer, Employee, or other agent of the person, and whether or not within the scope of the actual or apparent authority of the officer, Employee, or other agent; or\n    (b) by any other person at the direction or with the consent or agreement (whether express or implied) of an officer, Employee, or other agent of the person, and whether or not the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the officer, Employee, or other agent,\n\nis deemed to have been engaged in by the person.\n\n> Note: There is no penalty for this Rule.\n\n### 1.1.7 State of mind of a person\n\n(1) If for the purposes of these Rules in respect of conduct engaged in by a person, it is necessary to establish the state of mind of the person, it is sufficient to show that an officer, Employee, or other agent of the person, being an officer, Employee, or other agent by whom the conduct was engaged in and whether or not the conduct was within the scope of the actual or apparent authority of that officer, Employee, or other agent, had that state of mind.\n\n(2) In subrule (1), a reference to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose of the person and the person’s reasons for the person’s intention, opinion, belief or purpose.\n\n> Note: There is no penalty for this Rule.\n\n## Part 1.2 Waiver\n\n### 1.2.1 Waiver of Rules and procedures\n\n(1) Subject to Rule 1.2.3, ASIC may relieve any person or class of persons from the obligation to comply with a provision of these Rules, either generally or in a particular case or category, and either unconditionally or subject to such conditions as ASIC thinks fit.\n\n(2) If any conditions on a waiver given under subrule (1) are imposed, all of the conditions must be complied with for the waiver to be effective.\n\n(3) ASIC may withdraw, in writing, a waiver given under subrule (1) at any time.\n\n(4) Any request by a person for a waiver under subrule (1) must be in writing.\n\n(5) Any waiver given under subrule (1), and any conditions imposed on that waiver, must be in writing.\n\n(6) ASIC may publish notice of a waiver given under subrule (1).\n\n> Note: There is no penalty for this Rule.\n\n1.2.2 Compliance with conditions\n\nFailure to comply with a condition imposed under Rule 1.2.1 is a contravention of this Rule.\n\nMaximum penalty: $1,000,000\n\n1.2.3 Period during which relief applies\n\nASIC may specify the period or specific event during which any relief from an obligation to comply with a provision of these Rules may apply.\n\n> Note: There is no penalty for this Rule.\n\n1.2.4 Register\n\n(1) ASIC may establish and maintain a register for recording details of relief granted under Rule 1.2.1 and may enter the following details in the register:\n\n    (a) the date that the relief takes effect;\n    (b) the person or class of person relieved from the obligation;\n    (c) the provision to which the relief applies;\n    (d) brief reasons for the relief; and\n    (e) any conditions that apply to the relief.\n\n(2) ASIC may publish the register referred to in subrule (1).\n\n> Note: There is no penalty for this Rule.\n\nPart 1.3 Notice, notification and service of documents\n\n1.3.1 Market Participant to have email system\n\nA Market Participant must acquire and maintain an operating email system for the purposes of receiving notices under these Rules.\n\n> Note: There is no penalty for this Rule.\n\n1.3.2 Methods of giving notice in writing\n\nUnless otherwise specified in a Rule, ASIC may give notice under these Rules by any of the following methods:\n\n    (a) delivering it to the recipient personally;\n    (b) leaving it at or by sending it by courier or post to the address of the recipient last notified to ASIC;\n    (c) sending it by facsimile to the recipient’s facsimile number last notified to ASIC;\n    (d) a circular or bulletin addressed to a class of persons and delivered or communicated by any means permitted under this Rule;\n    (e) specific email by any method which identifies a person or person’s title as addressee and no notice of non-delivery has been received;\n    (f) broadcast email by any method which identifies the addressee and which, having regard to all the relevant circumstances at the time, was as reliable as appropriate for the purposes for which the information was communicated.\n\n> Note: There is no penalty for this Rule.\n\nPart 1.4 Interpretation\n\n1.4.1 References to time\n\nIn these Rules a reference to time is to the time in Sydney, Australia.\n\n> Note: There is no penalty for this Rule.\n\n1.4.2 Words and expressions defined in the Corporations Act\n\nWords and expressions defined in the Corporations Act will unless otherwise defined or specified in these Rules or the contrary intention appears, have the same meaning in these Rules.\n\n> Note: There is no penalty for this Rule.\n\n1.4.3 Definitions\n\n“Acquire” has the meaning given by section 9 of the Corporations Act.\n\n“Approved Foreign Bank” has the meaning given by regulation 1.0.02 of the Corporations Regulations.\n\n“Approved Securities” means those securities described as approved securities by the Market Operator under the Market Operating Rules.\n\n“ASIC” means the Australian Securities and Investments Commission.\n\n“ASIC Act” means the Australian Securities and Investments Commission Act 2001 (Cth).\n\n“ASX Clear” means ASX Clear (Futures) Pty Limited (ACN 050 615 864).\n\n“Australian Financial Services Licence” means a licence granted under section 913B of the Corporations Act.\n\n“Block Trade” means any Trade which is executed via the Block Trade Facility.\n\n“Block Trade Facility” means the facility provided by the Market Operator for Trading Contracts and referred to in the Market Operating Rules as the Block Trade Facility.\n\n“Block Trade Order” means an Order in a Contract prescribed by the Market Operator which must be executed via the Block Trade Facility.\n\n“Business Day” has the meaning given by section 9 of the Corporations Act.\n\n“Call” means the demand for payment of a sum of money made upon a Client.\n\n“Clearing Participant” means a person admitted as a participant under the Clearing Rules.\n\n“Clearing Rules” means operating rules:\n\n    (a) as the term is defined in section 761A of the Corporations Act; and\n    (b) made by ASX Clear.\n\n“Client” means in relation to a Market Participant, any person, partnership or Corporation on behalf of whom the Market Participant enters, Acquires or Disposes of a Futures Contract or Option Contract, or on whose behalf the Market Participant proposes to enter, Acquire or Dispose of a Futures Contract or Option Contract or from whom the Market Participant accepts instructions to enter, Acquire or Dispose of Futures Contracts or Option Contracts.\n\n“Client Account” means an account of a Client.\n\n“Client Trade” means a Trade of a Market Participant held on behalf of a Client.\n\n“Close Out” means to extinguish an Open Position by matching it with an offsetting Open Position and effecting the settlement of each such Open Position against the other.\n\n“Contract” means a contract entered, Acquired or Disposed of on the Market or capable of being entered, Acquired, or Disposed of on the Market.\n\n“Corporation” has the meaning given by section 9 of the Corporations Act.\n\n“Corporations Act” means the Corporations Act 2001 (Cth).\n\n“Corporations Regulations” means the Corporations Regulations 2001 (Cth).\n\n“Cover” means cash and/or Approved Securities as determined by the Market Operator and held by a Market Participant against a Client’s liability from time to time.\n\n“Deal”, “Deal In” or “Dealing” or cognate expressions has the meaning given by section 766C of the Corporations Act.\n\n“Director” has the meaning given by section 9 of the Corporations Act.\n\n“Dispose” has the meaning given by Chapter 7 of the Corporations Act.\n\n“Employee” in relation to a Market Participant includes a Director, employee, officer, agent, Representative, consultant or adviser of that Market Participant, or an independent contractor who acts for or by arrangement with a Market Participant.\n\n“Error Trade” means a Trade transacted in error.\n\n“Exchange For Physical” means a transaction where:\n\n    (a) a bona fide physical transaction in a commodity or instrument is completed and physical delivery takes place at the time of the transaction or is intended by both parties to take place at a later time; and\n    (b) at or about the same time a Contract, opposite in effect, is entered, Acquired or Disposed of by a Market Participant or two Market Participants, for the same or similar quantity or amount of the commodity or a substantially similar commodity or instrument between Market Participants, on behalf of the parties to the physical transaction.\n\n“Expression of Interest” means an enquiry made to a Market Participant either:\n\n    (a) to obtain the current best bid and/or offer in a particular Contract; or\n    (b) to enquire as to the volume that may be obtained at a given price;\n\nbut is not a firm Order to buy or sell.\n\n“Financial Products” has the meaning given by Division 3 of Part 7.1 of the Corporations Act.\n\n“Futures Contract” means a Contract designated as a “Futures Contract” by the Market Operator in the Market Operating Rules.\n\n“House Account” means any account other than a Client Account.\n\n“House Trade” means any Trade other than a Client Trade.\n\n“In Writing” means written, typed, printed or lithographed, or partly one and partly another and including any other mode of representing or reproducing words in a visible form, including electronically produced, displayed and recorded matter.\n\n“Initial Margin” means the amount which a Market Participant requires to be paid by a Client in respect of a Futures Contract entered into or proposed to be entered into on behalf of a Client.\n\n“Margin” means Initial Margin and Variation Margin.\n\n“Market” means the market operated by the Market Operator under the Australian Market Licence (Australian Securities Exchange Limited) 2002.\n\n“Market Operator” means Australian Securities Exchange Limited (ACN 000 943 377).\n\n“Market Operating Rules” means the Operating Rules of the Market.\n\n“Market Participant” means a participant in the Market admitted under the Market Operating Rules.\n\n“Minimum Volume Threshold” means the threshold determined by the Market Operator under the Market Operating Rules, being the minimum number of lots in respect of each Contract.\n\n“Month” means calendar month.\n\n“Open Position” An open position exists where the obligations under a Contract held by a party, which has not been closed out are yet to be performed and will refer as the context requires either to an open position as defined by the Clearing Rules held by a Clearing Participant or to such an open position which is held by a Market Participant on the instructions of a client, including open positions held, where applicable on markets other than the Market.\n\n“Operating Rules” has the meaning given by section 761A of the Corporations Act.\n\n“Option” or “Option Contract” means an Option over:\n\n    (a) a Futures Contract or a number of Futures Contracts; or\n    (b) an Option over an Underlying Physical,\n\nas listed by the Market Operator.\n\n“Order” means an instruction to enter into a Contract, or an instruction to amend or cancel a prior instruction to enter into a Contract.\n\n“Order System” means a software application, satisfactory to the Market Operator, for entering Orders into the Trading Platform through a Terminal.\n\n“Other Regulated Entities” means entities prescribed by regulations made for the purposes of paragraph 798H(1)(c) of the Corporations Act, that must comply with these Rules.\n\n“Pre-Opening Phase” has the meaning given by the Market Operating Rules.\n\n“Principal Trader” has the meaning given by the Market Operating Rules.\n\n“Related Body Corporate” has the meaning given by section 9 the Corporations Act.\n\n“Representative” has the meaning given by section 910A of the Corporations Act.\n\n“Roll Business” means trading a position from the nearest delivery month to an equivalent position in a different delivery month.\n\n“Rules” means these Market Integrity Rules.\n\n“Strategy Trade” means a Trade designated by the Market Operator as a strategy trade under the Market Operating Rules.\n\n“Terminal” means an automated Order entry interface through which an Order System routes Orders to the Trading Platform.\n\n“Trade” and similar expressions means “trade” as defined in section 9 of the Corporations Act.\n\n“Trading Day” means a day on which the Market is open for Trading.\n\n“Trading Participant” has the meaning given by the Market Operating Rules.\n\n“Trading Platform” means a facility made available by the Market Operator to Market Participants for the entry of trading messages, the matching of Orders, the advertisement of invitations to Trade and the reporting of transactions.\n\n“Underlying Physical” means the asset, instrument, index, reference rate or any other thing, excluding a Futures Contract, whose price movement determines the value of the Contract.\n\n“Variation Margin” means the difference between the value of a Futures Contract or Option Contract as shown in the Contract, and the value of that Contract at any given time.","sortOrder":0},{"sectionNumber":"1.1.1 Enabling legislation","sectionType":"division","heading":"1.1.1 Enabling legislation","content":"### 1.1.1 Enabling legislation\n\nASIC makes this instrument under subsection 798G(1) of the Corporations Act.","sortOrder":1},{"sectionNumber":"1.1.2 Title","sectionType":"division","heading":"1.1.2 Title","content":"### 1.1.2 Title\n\nThis instrument is ASIC Market Integrity Rules (ASX 24 Market) 2010.","sortOrder":2},{"sectionNumber":"1.1.3 Commencement","sectionType":"division","heading":"1.1.3 Commencement","content":"### 1.1.3 Commencement\n\nThis instrument commences on the later of:\n\n    (a) the day the instrument is registered under the Legislative Instruments Act 2003; and\n    (b) the commencement of Schedule 1 to the Corporations Amendment (Financial Market Supervision) Act 2010.\n\n> Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at [http://www.frli.gov.au/](http://www.frli.gov.au/).","sortOrder":3},{"sectionNumber":"1.1.4 Scope of these Rules","sectionType":"division","heading":"1.1.4 Scope of these Rules","content":"### 1.1.4 Scope of these Rules\n\nThese Rules apply to:\n\n    (a) the activities or conduct of the Market;\n    (b) the activities or conduct of persons in relation to the Market;\n    (c) the activities or conduct of persons in relation to Financial Products traded on the Market.\n\n> Note: There is no penalty for this Rule.","sortOrder":4},{"sectionNumber":"1.1.5 Entities that must comply with the","sectionType":"division","heading":"1.1.5 Entities that must comply with these Rules","content":"### 1.1.5 Entities that must comply with these Rules\n\nThe following entities must comply with these Rules:\n\n    (a) the Market Operator;\n    (b) Market Participants; and\n    (c) Other Regulated Entities;\n\nas specified in each Rule.\n\n> Note: There is no penalty for this Rule.","sortOrder":5},{"sectionNumber":"1.1.6 Conduct by officers, employees or ","sectionType":"division","heading":"1.1.6 Conduct by officers, employees or agents","content":"### 1.1.6 Conduct by officers, employees or agents\n\nIn these Rules, conduct engaged in on behalf of a person:\n\n    (a) by an officer, Employee, or other agent of the person, and whether or not within the scope of the actual or apparent authority of the officer, Employee, or other agent; or\n    (b) by any other person at the direction or with the consent or agreement (whether express or implied) of an officer, Employee, or other agent of the person, and whether or not the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the officer, Employee, or other agent,\n\nis deemed to have been engaged in by the person.\n\n> Note: There is no penalty for this Rule.","sortOrder":6},{"sectionNumber":"1.1.7 State of mind of a person","sectionType":"division","heading":"1.1.7 State of mind of a person","content":"### 1.1.7 State of mind of a person\n\n(1) If for the purposes of these Rules in respect of conduct engaged in by a person, it is necessary to establish the state of mind of the person, it is sufficient to show that an officer, Employee, or other agent of the person, being an officer, Employee, or other agent by whom the conduct was engaged in and whether or not the conduct was within the scope of the actual or apparent authority of that officer, Employee, or other agent, had that state of mind.\n\n(2) In subrule (1), a reference to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose of the person and the person’s reasons for the person’s intention, opinion, belief or purpose.\n\n> Note: There is no penalty for this Rule.","sortOrder":7},{"sectionNumber":"Part 1.2","sectionType":"part","heading":"Waiver","content":"Chapter 1: Introduction\n\n## Part 1.1 Preliminary\n\n### 1.1.1 Enabling legislation\n\nASIC makes this instrument under subsection 798G(1) of the Corporations Act.\n\n### 1.1.2 Title\n\nThis instrument is ASIC Market Integrity Rules (ASX 24 Market) 2010.\n\n### 1.1.3 Commencement\n\nThis instrument commences on the later of:\n\n    (a) the day the instrument is registered under the Legislative Instruments Act 2003; and\n    (b) the commencement of Schedule 1 to the Corporations Amendment (Financial Market Supervision) Act 2010.\n\n> Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at [http://www.frli.gov.au/](http://www.frli.gov.au/).\n\n### 1.1.4 Scope of these Rules\n\nThese Rules apply to:\n\n    (a) the activities or conduct of the Market;\n    (b) the activities or conduct of persons in relation to the Market;\n    (c) the activities or conduct of persons in relation to Financial Products traded on the Market.\n\n> Note: There is no penalty for this Rule.\n\n### 1.1.5 Entities that must comply with these Rules\n\nThe following entities must comply with these Rules:\n\n    (a) the Market Operator;\n    (b) Market Participants; and\n    (c) Other Regulated Entities;\n\nas specified in each Rule.\n\n> Note: There is no penalty for this Rule.\n\n### 1.1.6 Conduct by officers, employees or agents\n\nIn these Rules, conduct engaged in on behalf of a person:\n\n    (a) by an officer, Employee, or other agent of the person, and whether or not within the scope of the actual or apparent authority of the officer, Employee, or other agent; or\n    (b) by any other person at the direction or with the consent or agreement (whether express or implied) of an officer, Employee, or other agent of the person, and whether or not the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the officer, Employee, or other agent,\n\nis deemed to have been engaged in by the person.\n\n> Note: There is no penalty for this Rule.\n\n### 1.1.7 State of mind of a person\n\n(1) If for the purposes of these Rules in respect of conduct engaged in by a person, it is necessary to establish the state of mind of the person, it is sufficient to show that an officer, Employee, or other agent of the person, being an officer, Employee, or other agent by whom the conduct was engaged in and whether or not the conduct was within the scope of the actual or apparent authority of that officer, Employee, or other agent, had that state of mind.\n\n(2) In subrule (1), a reference to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose of the person and the person’s reasons for the person’s intention, opinion, belief or purpose.\n\n> Note: There is no penalty for this Rule.\n\n## Part 1.2 Waiver\n\n### 1.2.1 Waiver of Rules and procedures\n\n(1) Subject to Rule 1.2.3, ASIC may relieve any person or class of persons from the obligation to comply with a provision of these Rules, either generally or in a particular case or category, and either unconditionally or subject to such conditions as ASIC thinks fit.\n\n(2) If any conditions on a waiver given under subrule (1) are imposed, all of the conditions must be complied with for the waiver to be effective.\n\n(3) ASIC may withdraw, in writing, a waiver given under subrule (1) at any time.\n\n(4) Any request by a person for a waiver under subrule (1) must be in writing.\n\n(5) Any waiver given under subrule (1), and any conditions imposed on that waiver, must be in writing.\n\n(6) ASIC may publish notice of a waiver given under subrule (1).\n\n> Note: There is no penalty for this Rule.\n\n1.2.2 Compliance with conditions\n\nFailure to comply with a condition imposed under Rule 1.2.1 is a contravention of this Rule.\n\nMaximum penalty: $1,000,000\n\n1.2.3 Period during which relief applies\n\nASIC may specify the period or specific event during which any relief from an obligation to comply with a provision of these Rules may apply.\n\n> Note: There is no penalty for this Rule.\n\n1.2.4 Register\n\n(1) ASIC may establish and maintain a register for recording details of relief granted under Rule 1.2.1 and may enter the following details in the register:\n\n    (a) the date that the relief takes effect;\n    (b) the person or class of person relieved from the obligation;\n    (c) the provision to which the relief applies;\n    (d) brief reasons for the relief; and\n    (e) any conditions that apply to the relief.\n\n(2) ASIC may publish the register referred to in subrule (1).\n\n> Note: There is no penalty for this Rule.\n\nPart 1.3 Notice, notification and service of documents\n\n1.3.1 Market Participant to have email system\n\nA Market Participant must acquire and maintain an operating email system for the purposes of receiving notices under these Rules.\n\n> Note: There is no penalty for this Rule.\n\n1.3.2 Methods of giving notice in writing\n\nUnless otherwise specified in a Rule, ASIC may give notice under these Rules by any of the following methods:\n\n    (a) delivering it to the recipient personally;\n    (b) leaving it at or by sending it by courier or post to the address of the recipient last notified to ASIC;\n    (c) sending it by facsimile to the recipient’s facsimile number last notified to ASIC;\n    (d) a circular or bulletin addressed to a class of persons and delivered or communicated by any means permitted under this Rule;\n    (e) specific email by any method which identifies a person or person’s title as addressee and no notice of non-delivery has been received;\n    (f) broadcast email by any method which identifies the addressee and which, having regard to all the relevant circumstances at the time, was as reliable as appropriate for the purposes for which the information was communicated.\n\n> Note: There is no penalty for this Rule.\n\nPart 1.4 Interpretation\n\n1.4.1 References to time\n\nIn these Rules a reference to time is to the time in Sydney, Australia.\n\n> Note: There is no penalty for this Rule.\n\n1.4.2 Words and expressions defined in the Corporations Act\n\nWords and expressions defined in the Corporations Act will unless otherwise defined or specified in these Rules or the contrary intention appears, have the same meaning in these Rules.\n\n> Note: There is no penalty for this Rule.\n\n1.4.3 Definitions\n\n“Acquire” has the meaning given by section 9 of the Corporations Act.\n\n“Approved Foreign Bank” has the meaning given by regulation 1.0.02 of the Corporations Regulations.\n\n“Approved Securities” means those securities described as approved securities by the Market Operator under the Market Operating Rules.\n\n“ASIC” means the Australian Securities and Investments Commission.\n\n“ASIC Act” means the Australian Securities and Investments Commission Act 2001 (Cth).\n\n“ASX Clear” means ASX Clear (Futures) Pty Limited (ACN 050 615 864).\n\n“Australian Financial Services Licence” means a licence granted under section 913B of the Corporations Act.\n\n“Block Trade” means any Trade which is executed via the Block Trade Facility.\n\n“Block Trade Facility” means the facility provided by the Market Operator for Trading Contracts and referred to in the Market Operating Rules as the Block Trade Facility.\n\n“Block Trade Order” means an Order in a Contract prescribed by the Market Operator which must be executed via the Block Trade Facility.\n\n“Business Day” has the meaning given by section 9 of the Corporations Act.\n\n“Call” means the demand for payment of a sum of money made upon a Client.\n\n“Clearing Participant” means a person admitted as a participant under the Clearing Rules.\n\n“Clearing Rules” means operating rules:\n\n    (a) as the term is defined in section 761A of the Corporations Act; and\n    (b) made by ASX Clear.\n\n“Client” means in relation to a Market Participant, any person, partnership or Corporation on behalf of whom the Market Participant enters, Acquires or Disposes of a Futures Contract or Option Contract, or on whose behalf the Market Participant proposes to enter, Acquire or Dispose of a Futures Contract or Option Contract or from whom the Market Participant accepts instructions to enter, Acquire or Dispose of Futures Contracts or Option Contracts.\n\n“Client Account” means an account of a Client.\n\n“Client Trade” means a Trade of a Market Participant held on behalf of a Client.\n\n“Close Out” means to extinguish an Open Position by matching it with an offsetting Open Position and effecting the settlement of each such Open Position against the other.\n\n“Contract” means a contract entered, Acquired or Disposed of on the Market or capable of being entered, Acquired, or Disposed of on the Market.\n\n“Corporation” has the meaning given by section 9 of the Corporations Act.\n\n“Corporations Act” means the Corporations Act 2001 (Cth).\n\n“Corporations Regulations” means the Corporations Regulations 2001 (Cth).\n\n“Cover” means cash and/or Approved Securities as determined by the Market Operator and held by a Market Participant against a Client’s liability from time to time.\n\n“Deal”, “Deal In” or “Dealing” or cognate expressions has the meaning given by section 766C of the Corporations Act.\n\n“Director” has the meaning given by section 9 of the Corporations Act.\n\n“Dispose” has the meaning given by Chapter 7 of the Corporations Act.\n\n“Employee” in relation to a Market Participant includes a Director, employee, officer, agent, Representative, consultant or adviser of that Market Participant, or an independent contractor who acts for or by arrangement with a Market Participant.\n\n“Error Trade” means a Trade transacted in error.\n\n“Exchange For Physical” means a transaction where:\n\n    (a) a bona fide physical transaction in a commodity or instrument is completed and physical delivery takes place at the time of the transaction or is intended by both parties to take place at a later time; and\n    (b) at or about the same time a Contract, opposite in effect, is entered, Acquired or Disposed of by a Market Participant or two Market Participants, for the same or similar quantity or amount of the commodity or a substantially similar commodity or instrument between Market Participants, on behalf of the parties to the physical transaction.\n\n“Expression of Interest” means an enquiry made to a Market Participant either:\n\n    (a) to obtain the current best bid and/or offer in a particular Contract; or\n    (b) to enquire as to the volume that may be obtained at a given price;\n\nbut is not a firm Order to buy or sell.\n\n“Financial Products” has the meaning given by Division 3 of Part 7.1 of the Corporations Act.\n\n“Futures Contract” means a Contract designated as a “Futures Contract” by the Market Operator in the Market Operating Rules.\n\n“House Account” means any account other than a Client Account.\n\n“House Trade” means any Trade other than a Client Trade.\n\n“In Writing” means written, typed, printed or lithographed, or partly one and partly another and including any other mode of representing or reproducing words in a visible form, including electronically produced, displayed and recorded matter.\n\n“Initial Margin” means the amount which a Market Participant requires to be paid by a Client in respect of a Futures Contract entered into or proposed to be entered into on behalf of a Client.\n\n“Margin” means Initial Margin and Variation Margin.\n\n“Market” means the market operated by the Market Operator under the Australian Market Licence (Australian Securities Exchange Limited) 2002.\n\n“Market Operator” means Australian Securities Exchange Limited (ACN 000 943 377).\n\n“Market Operating Rules” means the Operating Rules of the Market.\n\n“Market Participant” means a participant in the Market admitted under the Market Operating Rules.\n\n“Minimum Volume Threshold” means the threshold determined by the Market Operator under the Market Operating Rules, being the minimum number of lots in respect of each Contract.\n\n“Month” means calendar month.\n\n“Open Position” An open position exists where the obligations under a Contract held by a party, which has not been closed out are yet to be performed and will refer as the context requires either to an open position as defined by the Clearing Rules held by a Clearing Participant or to such an open position which is held by a Market Participant on the instructions of a client, including open positions held, where applicable on markets other than the Market.\n\n“Operating Rules” has the meaning given by section 761A of the Corporations Act.\n\n“Option” or “Option Contract” means an Option over:\n\n    (a) a Futures Contract or a number of Futures Contracts; or\n    (b) an Option over an Underlying Physical,\n\nas listed by the Market Operator.\n\n“Order” means an instruction to enter into a Contract, or an instruction to amend or cancel a prior instruction to enter into a Contract.\n\n“Order System” means a software application, satisfactory to the Market Operator, for entering Orders into the Trading Platform through a Terminal.\n\n“Other Regulated Entities” means entities prescribed by regulations made for the purposes of paragraph 798H(1)(c) of the Corporations Act, that must comply with these Rules.\n\n“Pre-Opening Phase” has the meaning given by the Market Operating Rules.\n\n“Principal Trader” has the meaning given by the Market Operating Rules.\n\n“Related Body Corporate” has the meaning given by section 9 the Corporations Act.\n\n“Representative” has the meaning given by section 910A of the Corporations Act.\n\n“Roll Business” means trading a position from the nearest delivery month to an equivalent position in a different delivery month.\n\n“Rules” means these Market Integrity Rules.\n\n“Strategy Trade” means a Trade designated by the Market Operator as a strategy trade under the Market Operating Rules.\n\n“Terminal” means an automated Order entry interface through which an Order System routes Orders to the Trading Platform.\n\n“Trade” and similar expressions means “trade” as defined in section 9 of the Corporations Act.\n\n“Trading Day” means a day on which the Market is open for Trading.\n\n“Trading Participant” has the meaning given by the Market Operating Rules.\n\n“Trading Platform” means a facility made available by the Market Operator to Market Participants for the entry of trading messages, the matching of Orders, the advertisement of invitations to Trade and the reporting of transactions.\n\n“Underlying Physical” means the asset, instrument, index, reference rate or any other thing, excluding a Futures Contract, whose price movement determines the value of the Contract.\n\n“Variation Margin” means the difference between the value of a Futures Contract or Option Contract as shown in the Contract, and the value of that Contract at any given time.","sortOrder":8},{"sectionNumber":"1.2.1 Waiver of Rules and procedures","sectionType":"division","heading":"1.2.1 Waiver of Rules and procedures","content":"### 1.2.1 Waiver of Rules and procedures\n\n(1) Subject to Rule 1.2.3, ASIC may relieve any person or class of persons from the obligation to comply with a provision of these Rules, either generally or in a particular case or category, and either unconditionally or subject to such conditions as ASIC thinks fit.\n\n(2) If any conditions on a waiver given under subrule (1) are imposed, all of the conditions must be complied with for the waiver to be effective.\n\n(3) ASIC may withdraw, in writing, a waiver given under subrule (1) at any time.\n\n(4) Any request by a person for a waiver under subrule (1) must be in writing.\n\n(5) Any waiver given under subrule (1), and any conditions imposed on that waiver, must be in writing.\n\n(6) ASIC may publish notice of a waiver given under subrule (1).\n\n> Note: There is no penalty for this Rule.\n\n1.2.2 Compliance with conditions\n\nFailure to comply with a condition imposed under Rule 1.2.1 is a contravention of this Rule.\n\nMaximum penalty: $1,000,000\n\n1.2.3 Period during which relief applies\n\nASIC may specify the period or specific event during which any relief from an obligation to comply with a provision of these Rules may apply.\n\n> Note: There is no penalty for this Rule.\n\n1.2.4 Register\n\n(1) ASIC may establish and maintain a register for recording details of relief granted under Rule 1.2.1 and may enter the following details in the register:\n\n    (a) the date that the relief takes effect;\n    (b) the person or class of person relieved from the obligation;\n    (c) the provision to which the relief applies;\n    (d) brief reasons for the relief; and\n    (e) any conditions that apply to the relief.\n\n(2) ASIC may publish the register referred to in subrule (1).\n\n> Note: There is no penalty for this Rule.\n\nPart 1.3 Notice, notification and service of documents\n\n1.3.1 Market Participant to have email system\n\nA Market Participant must acquire and maintain an operating email system for the purposes of receiving notices under these Rules.\n\n> Note: There is no penalty for this Rule.\n\n1.3.2 Methods of giving notice in writing\n\nUnless otherwise specified in a Rule, ASIC may give notice under these Rules by any of the following methods:\n\n    (a) delivering it to the recipient personally;\n    (b) leaving it at or by sending it by courier or post to the address of the recipient last notified to ASIC;\n    (c) sending it by facsimile to the recipient’s facsimile number last notified to ASIC;\n    (d) a circular or bulletin addressed to a class of persons and delivered or communicated by any means permitted under this Rule;\n    (e) specific email by any method which identifies a person or person’s title as addressee and no notice of non-delivery has been received;\n    (f) broadcast email by any method which identifies the addressee and which, having regard to all the relevant circumstances at the time, was as reliable as appropriate for the purposes for which the information was communicated.\n\n> Note: There is no penalty for this Rule.\n\nPart 1.4 Interpretation\n\n1.4.1 References to time\n\nIn these Rules a reference to time is to the time in Sydney, Australia.\n\n> Note: There is no penalty for this Rule.\n\n1.4.2 Words and expressions defined in the Corporations Act\n\nWords and expressions defined in the Corporations Act will unless otherwise defined or specified in these Rules or the contrary intention appears, have the same meaning in these Rules.\n\n> Note: There is no penalty for this Rule.\n\n1.4.3 Definitions\n\n“Acquire” has the meaning given by section 9 of the Corporations Act.\n\n“Approved Foreign Bank” has the meaning given by regulation 1.0.02 of the Corporations Regulations.\n\n“Approved Securities” means those securities described as approved securities by the Market Operator under the Market Operating Rules.\n\n“ASIC” means the Australian Securities and Investments Commission.\n\n“ASIC Act” means the Australian Securities and Investments Commission Act 2001 (Cth).\n\n“ASX Clear” means ASX Clear (Futures) Pty Limited (ACN 050 615 864).\n\n“Australian Financial Services Licence” means a licence granted under section 913B of the Corporations Act.\n\n“Block Trade” means any Trade which is executed via the Block Trade Facility.\n\n“Block Trade Facility” means the facility provided by the Market Operator for Trading Contracts and referred to in the Market Operating Rules as the Block Trade Facility.\n\n“Block Trade Order” means an Order in a Contract prescribed by the Market Operator which must be executed via the Block Trade Facility.\n\n“Business Day” has the meaning given by section 9 of the Corporations Act.\n\n“Call” means the demand for payment of a sum of money made upon a Client.\n\n“Clearing Participant” means a person admitted as a participant under the Clearing Rules.\n\n“Clearing Rules” means operating rules:\n\n    (a) as the term is defined in section 761A of the Corporations Act; and\n    (b) made by ASX Clear.\n\n“Client” means in relation to a Market Participant, any person, partnership or Corporation on behalf of whom the Market Participant enters, Acquires or Disposes of a Futures Contract or Option Contract, or on whose behalf the Market Participant proposes to enter, Acquire or Dispose of a Futures Contract or Option Contract or from whom the Market Participant accepts instructions to enter, Acquire or Dispose of Futures Contracts or Option Contracts.\n\n“Client Account” means an account of a Client.\n\n“Client Trade” means a Trade of a Market Participant held on behalf of a Client.\n\n“Close Out” means to extinguish an Open Position by matching it with an offsetting Open Position and effecting the settlement of each such Open Position against the other.\n\n“Contract” means a contract entered, Acquired or Disposed of on the Market or capable of being entered, Acquired, or Disposed of on the Market.\n\n“Corporation” has the meaning given by section 9 of the Corporations Act.\n\n“Corporations Act” means the Corporations Act 2001 (Cth).\n\n“Corporations Regulations” means the Corporations Regulations 2001 (Cth).\n\n“Cover” means cash and/or Approved Securities as determined by the Market Operator and held by a Market Participant against a Client’s liability from time to time.\n\n“Deal”, “Deal In” or “Dealing” or cognate expressions has the meaning given by section 766C of the Corporations Act.\n\n“Director” has the meaning given by section 9 of the Corporations Act.\n\n“Dispose” has the meaning given by Chapter 7 of the Corporations Act.\n\n“Employee” in relation to a Market Participant includes a Director, employee, officer, agent, Representative, consultant or adviser of that Market Participant, or an independent contractor who acts for or by arrangement with a Market Participant.\n\n“Error Trade” means a Trade transacted in error.\n\n“Exchange For Physical” means a transaction where:\n\n    (a) a bona fide physical transaction in a commodity or instrument is completed and physical delivery takes place at the time of the transaction or is intended by both parties to take place at a later time; and\n    (b) at or about the same time a Contract, opposite in effect, is entered, Acquired or Disposed of by a Market Participant or two Market Participants, for the same or similar quantity or amount of the commodity or a substantially similar commodity or instrument between Market Participants, on behalf of the parties to the physical transaction.\n\n“Expression of Interest” means an enquiry made to a Market Participant either:\n\n    (a) to obtain the current best bid and/or offer in a particular Contract; or\n    (b) to enquire as to the volume that may be obtained at a given price;\n\nbut is not a firm Order to buy or sell.\n\n“Financial Products” has the meaning given by Division 3 of Part 7.1 of the Corporations Act.\n\n“Futures Contract” means a Contract designated as a “Futures Contract” by the Market Operator in the Market Operating Rules.\n\n“House Account” means any account other than a Client Account.\n\n“House Trade” means any Trade other than a Client Trade.\n\n“In Writing” means written, typed, printed or lithographed, or partly one and partly another and including any other mode of representing or reproducing words in a visible form, including electronically produced, displayed and recorded matter.\n\n“Initial Margin” means the amount which a Market Participant requires to be paid by a Client in respect of a Futures Contract entered into or proposed to be entered into on behalf of a Client.\n\n“Margin” means Initial Margin and Variation Margin.\n\n“Market” means the market operated by the Market Operator under the Australian Market Licence (Australian Securities Exchange Limited) 2002.\n\n“Market Operator” means Australian Securities Exchange Limited (ACN 000 943 377).\n\n“Market Operating Rules” means the Operating Rules of the Market.\n\n“Market Participant” means a participant in the Market admitted under the Market Operating Rules.\n\n“Minimum Volume Threshold” means the threshold determined by the Market Operator under the Market Operating Rules, being the minimum number of lots in respect of each Contract.\n\n“Month” means calendar month.\n\n“Open Position” An open position exists where the obligations under a Contract held by a party, which has not been closed out are yet to be performed and will refer as the context requires either to an open position as defined by the Clearing Rules held by a Clearing Participant or to such an open position which is held by a Market Participant on the instructions of a client, including open positions held, where applicable on markets other than the Market.\n\n“Operating Rules” has the meaning given by section 761A of the Corporations Act.\n\n“Option” or “Option Contract” means an Option over:\n\n    (a) a Futures Contract or a number of Futures Contracts; or\n    (b) an Option over an Underlying Physical,\n\nas listed by the Market Operator.\n\n“Order” means an instruction to enter into a Contract, or an instruction to amend or cancel a prior instruction to enter into a Contract.\n\n“Order System” means a software application, satisfactory to the Market Operator, for entering Orders into the Trading Platform through a Terminal.\n\n“Other Regulated Entities” means entities prescribed by regulations made for the purposes of paragraph 798H(1)(c) of the Corporations Act, that must comply with these Rules.\n\n“Pre-Opening Phase” has the meaning given by the Market Operating Rules.\n\n“Principal Trader” has the meaning given by the Market Operating Rules.\n\n“Related Body Corporate” has the meaning given by section 9 the Corporations Act.\n\n“Representative” has the meaning given by section 910A of the Corporations Act.\n\n“Roll Business” means trading a position from the nearest delivery month to an equivalent position in a different delivery month.\n\n“Rules” means these Market Integrity Rules.\n\n“Strategy Trade” means a Trade designated by the Market Operator as a strategy trade under the Market Operating Rules.\n\n“Terminal” means an automated Order entry interface through which an Order System routes Orders to the Trading Platform.\n\n“Trade” and similar expressions means “trade” as defined in section 9 of the Corporations Act.\n\n“Trading Day” means a day on which the Market is open for Trading.\n\n“Trading Participant” has the meaning given by the Market Operating Rules.\n\n“Trading Platform” means a facility made available by the Market Operator to Market Participants for the entry of trading messages, the matching of Orders, the advertisement of invitations to Trade and the reporting of transactions.\n\n“Underlying Physical” means the asset, instrument, index, reference rate or any other thing, excluding a Futures Contract, whose price movement determines the value of the Contract.\n\n“Variation Margin” means the difference between the value of a Futures Contract or Option Contract as shown in the Contract, and the value of that Contract at any given time.","sortOrder":9},{"sectionNumber":"2.2.2 Concentration of risk","sectionType":"division","heading":"2.2.2 Concentration of risk","content":"### 2.2.2 Concentration of risk\n\n(1) A Market Participant other than a Principal Trader must not permit any one Client to represent such a percentage of the Trading by the Market Participant as may prejudice or diminish the ability of the Market Participant to meet its obligations under these Rules and at law.\n\n(2) For the purposes of this Rule 2.2.2, “Client” includes all persons, partnerships and Corporations related to, associated with or affiliated with the Client or otherwise financially dependent upon the Client.\n\nMaximum penalty: $100,000","sortOrder":10},{"sectionNumber":"2.2.3 Prohibited employment","sectionType":"division","heading":"2.2.3 Prohibited employment","content":"### 2.2.3 Prohibited employment\n\n(1) A Market Participant must not employ any person who has been a Market Participant (or a Director, partner, Employee or Representative of a Market Participant) if that person has to the knowledge of the first mentioned Market Participant taken part or been concerned in any failure to comply with:\n\n    (a) these Rules or market integrity rules on substantially the same terms as and modelled on these Rules, which failure has been found to have occurred by ASIC;\n    (b) the Market Operating Rules, which failure has been found to have occurred by the Market Operator; or\n    (c) the operating rules in force prior to the commencement of these Rules, which failure has been found to have occurred by the Market Operator prior to commencement of these Rules.\n\n(2) For the purposes of this Rule 2.2.3 the words “to employ” and cognate expressions include agreeing or arranging with a person for that person to act as the Market Participant’s Representative to advise or solicit instructions from other persons or to Trade, on the Market Participant’s behalf in relation to Dealings in Contracts.\n\nMaximum penalty: $1,000,000","sortOrder":11},{"sectionNumber":"2.2.4 Order records and accounting recor","sectionType":"division","heading":"2.2.4 Order records and accounting records","content":"### 2.2.4 Order records and accounting records\n\n(1) Client Orders\n\nA Market Participant, other than a Principal Trader, must maintain internal records of instructions received from Clients and Trades executed for Clients for a period of not less than five (5) years from the date of the Trade, containing the following information:\n\n    (a) the nature of the instructions received, including information about: the commodity, the name of the market, delivery Month, buy or sell, number of lots and price/limit;\n    (b) the Client name/account number and Client ID;\n    (c) the person who gave the instructions;\n    (d) the time and date of receipt of the instructions, and the person who received the instructions;\n    (e) the time and date of transmission of the instructions, and the person who transmitted the instructions; and\n    (f) the time and date of execution of the instructions, and the person who executed the instructions.\n\n(2) Proprietary Orders\n\nA Market Participant must maintain records of its Representatives’ Trading for a House Account for a period of not less than five (5) years from the date of a Trade, containing the following information:\n\n    (a) the time and date of receipt of instructions;\n    (b) the nature of the instructions received;\n    (c) the person who received the instructions;\n    (d) the time and date of transmission of those instructions, and the person who transmitted the instructions; and\n    (e) the time and date of execution of those instructions, and the person who executed the instructions.\n\n(3) Error Trades\n\nA Market Participant must maintain a separate record of all Error Trades for a period of not less than five (5) years from the date of a Trade, containing the following information:\n\n    (a) a description of the Trade including the deal number supplied by the Market Operator (if any);\n    (b) the name of the Representative responsible for the Error Trade;\n    (c) the name of the Representative responsible for the execution of the Trade;\n    (d) a detailed explanation as to how the Trade occurred, including details of the original Client Order (if any) which precipitated the error;\n    (e) any subsequent action taken by the Market Participant in relation to that Trade; and\n    (f) the financial result of the Trade.\n\n(4) Accounting records\n\n    (a) A Market Participant must maintain such accounting records as correctly record and explain the transactions of the Market Participant and the financial position of the Market Participant.\n    (b) In relation to Calls, a Market Participant must at all times maintain such accounting records as accurately indicate in respect of each Call for Initial Margin or Variation Margin made upon Clients:\n      (i) the date and time at which such Call was received;\n      (ii) the amount of such Call;\n      (iii) the extent to which the Call was payable by reason of:\n      (A) Trading undertaken by the Market Participant on its own account or an account of a related corporation; and\n      (B) Trading undertaken by the Market Participant for Clients, so that the amount of any such Call is apportioned accordingly;\n      (iv) the extent to which the Call was met from:\n      (A) monies in the Clients’ segregated account; and\n      (B) other sources (specifying those sources and the amount satisfied from each such source); and\n    (c) the date and time at which such Call was met.\n\nMaximum penalty: $100,000","sortOrder":12},{"sectionNumber":"2.2.5 Client documentation","sectionType":"division","heading":"2.2.5 Client documentation","content":"### 2.2.5 Client documentation\n\n(1) Subject to Rule 2.2.5(2), a Market Participant must have in force, prior to the commencement of Trading for a Client, a duly signed agreement with that Client, containing minimum terms to the following effect:\n\n    (a) Client to provide information\n    In relation to the Client’s Trading on the Market, the Client will upon the Market Participant’s request, provide all information and documentation relevant to that Trading, to the Market Participant and the Market Participant is authorised by the Client to provide the information and documentation to ASIC.\n    (b) Margins\n    Unless the Market Participant is performing executing business only and the Client has an agreement in place with a Clearing Participant, or is otherwise exempted under these Rules, an acknowledgment by the Client that:\n      (i) the Market Participant may Call for payment of Margin such money or property (or Call for the lodgement of Approved Securities in lieu thereof) as the Market Participant, in its absolute discretion, feels is necessary to protect itself from the personal obligation incurred by Dealing in Contracts on behalf of the Client.\n      (ii) should the Client fail to meet the Call (or lodge Approved Securities) then the Market Participant may (without prejudice to any other rights or powers under the agreement) and without creating an obligation to do so, Close Out, without notice, all or some of the Client’s Contracts.\n      (iii) the time for payment of Margins is of the essence and if no other time is stipulated by the Market Participant prior to Calling a Margin then the Client is required to comply within twenty-four (24) hours.\n      (iv) liability to pay the Initial Margin accrues at the time the Trade is executed regardless of when a Call is made.\n      (v) liability to pay Variation Margin accrues at the time the Margin comes into existence regardless of when a Call is made.\n      (vi) the Client is responsible to pay in cash any deficit owing to the Market Participant after closure and that if the Client defaults in payment of such deficit, the Market Participant may realise any securities held by the Market Participant and apply the proceeds against that deficiency.\n    (c) Tape recordings\n    An acknowledgment by the Client that the Client’s telephone conversations with the Market Participant can be recorded by the Market Participant. The Client is to be given the right to listen to any recording in the event of a dispute or anticipated dispute.\n    (d) Right to refuse to Deal\n    An acknowledgment by the Client that the Market Participant reserves the right to refuse to Deal on behalf of the Client in relation to any Dealings in Contracts (other than Closing Out existing Open Positions held in the Market Participant’s account on behalf of the Client) or limit the number of Open Positions held on behalf of the Client or both. The Market Participant will inform the Client of any refusal at or before the time of the Client placing the Order or as soon as possible thereafter.\n    (e) Termination and Closing Out\n    An acknowledgment that:\n      (i) without affecting any existing obligations or liabilities, either the Client or the Market Participant may terminate the agreement at any time by giving the other notice In Writing to that effect;\n      (ii) upon termination of the Client agreement that unless otherwise agreed In Writing the Market Participant will Close Out all the Client’s Futures Contracts and Close Out, abandon or exercise any Options not yet exercised.\n\n(2) Exception\n\nRule 2.2.5(1) does not apply:\n\n    (a) to a Principal Trader;\n    (b) where the Client is another Market Participant, and the Market Operating Rules provide that an agreement containing the terms of Rule 2.2.5(1) is deemed to have been entered and come into effect immediately upon the Market Participant accepting the first instruction from the Client to enter a Contract; or\n    (c) where the Market Participant is performing execution business only and has an agreement in place with the Client that incorporates the provisions set out in the International Uniform Brokerage Execution Services (“Give-Up”) Agreement 2008 (both client and trader versions).\n\nMaximum penalty: $100,000\n\n2.2.6 Clients’ segregated account obligations\n\nA Market Participant, who holds Client monies, must comply with the following:\n\n    (a) Client money\n      (i) All money received by the Market Participant from its Clients or by a person acting on behalf of the Client under these Rules or the Market Operating Rules must be deposited in an account maintained by the Market Participant and designated as a Clients’ segregated account.\n      (ii) If the account is operated outside Australia and the law in force in the jurisdiction where it is maintained requires the account to be designated in a particular way, the Market Participant must designate the account in that way.\n      (iii) Where omnibus accounts are operated by a Market Participant (e.g. on behalf of another broker), a House Account and Client Account are to be maintained separately at all levels in the chain to the clearing and settlement facility level.\n      (iv) A Market Participant must not net off the Client Account against the House Account.\n    (b) Type of money to be paid into an account\n    Only the following monies are permitted to be paid into a Clients’ segregated account:\n      (i) all money received by the Market Participant from its Client or by a person acting on behalf of its Client;\n      (ii) interest on the amount from time to time standing to the credit of the account;\n      (iii) interest or other similar payments on an investment, and the proceeds of the realisation of an investment; and\n      (iv) any other money as required by the Rules or Market Operating Rules or the law to be paid by the Market Participant into a Clients’ segregated account.\n    (c) When money must be paid into an account\n    The money must be paid into a Clients’ segregated account on the day it is received by the Market Participant, or on the next Business Day.\n    (d) Permitted withdrawal\n    Withdrawals from a Clients’ segregated account made in any of the following circumstances are permissible:\n      (i) paying Margins and the settling of Dealings;\n      (ii) making a payment to, or in accordance with the written direction of, a person entitled to the money;\n      (iii) defraying brokerage and other proper charges;\n      (iv) paying to the Market Participant money to which the Market Participant is entitled, whether at law or under the Rules or Market Operating Rules; and\n      (v) making a payment that is otherwise authorised by law.\n    (e) Payment to another Australian Financial Services licensee\n      (i) If payment referred to in Rule 2.2.6(e)(ii) is made by the Market Participant to the holder of an Australian Financial Services Licence, the Market Participant must ensure that Australian Financial Services licensee is notified, at the same time as the payment is made or as soon as practicable after, that the money:\n      (A) has been withdrawn from an account of the Market Participant maintained for Rule 2.2.6; and\n      (B) should be paid into an account of the Australian Financial Services licensee maintained for Rule 2.2.6.\n      (ii) If the Australian Financial Services licensee who receives the payment in Rule 2.2.6(e)(i) is also a Market Participant, it must, not later than the day after it receives the payment, pay the money received into an account maintained by it for Rule 2.2.6.\n    (f) Requirement to deposit additional monies in Clients’ segregated account\n      (i) Where five (5) clear Business Days (inclusive of the day of the Call) after a Call has been made on a Client for Initial Margin or Variation Margin in accordance with the Market Operating Rules, or such Call should have been made in accordance with the Market Operating Rules, the Call which was or should have been made has not been satisfied by payment of monies into a Clients’ segregated account or lodgement of Cover, then the Market Participant must pay into the Clients’ segregated account an amount of money not less than either:\n      (A) the liability of the Client under such a Call; or\n      (B) the amount which the Market Participant would be obliged to Call the Client on the day after five (5) clear Business Days (inclusive of the day of the Call) has elapsed, whichever is the lesser.\n      (ii) Subject to Rule 2.2.6(f) such monies may only be withdrawn in accordance with Rule 2.2.6(d) and only after such monies have been received by the Market Participant.\n      (iii) The Market Participant must pay into the Clients’ segregated account after five (5) clear Business Days, any amount (which has not been met by the Client), which arises as a result of debit balances of a Client resulting from realised losses or otherwise.\n    (g) Prohibited agreements\n    A Market Participant is prohibited from making any agreement with a Client that the Client’s money is not to be held or does not need to be held in a segregated account for the benefit of the Client.\n    (h) Permissible investments\n    Where a Market Participant invests money from a Clients’ segregated account, the following kinds of investments may be made:\n      (i) investment in any manner in which trustees are for the time being authorised by law to invest trust funds;\n      (ii) investment on deposit with an eligible money market dealer;\n      (iii) investment on deposit at interest with:\n      (A) an Australian ADI; or\n      (B) an Approved Foreign Bank;\n      (iv) the acquisition of cash management trust interests;\n      (v) investment in a security issued or guaranteed by the Commonwealth or a State or Territory;\n      (vi) investment on deposit with a licensed clearing and settlement facility; or\n      (vii) an investment in accordance with the specific direction of a Client.\n    (i) Monies invested\n    Where a Market Participant invests money from a Clients’ segregated account then:\n      (i) the Market Participant must, prior to investing any amount, obtain the Client’s written agreement to the following matters:\n      (A) the making of the investment;\n      (B) how earnings on the investment are to be dealt with;\n      (C) how the realisation of the investment is to be dealt with;\n      (D) how any losses made on the investment are to be dealt with; and\n      (E) the fee (if any) that the Market Participant proposes to charge for the investment; and\n      (ii) such investment must be readily realisable and no less than fifty per cent (50%) of monies invested must be on twenty-four (24) hour call.\n    (j) Separation of Market Participants’ Trading liabilities from Clients’ Trading liabilities\n    A Market Participant must not use a Clients’ segregated account to meet any Initial Margin or Variation Margin liabilities which relate to Trading by that Market Participant on its own behalf or on behalf of a related corporation.\n    (k) Accounting records for withdrawals\n    A Market Participant must at all times maintain such accounting records as accurately indicate each withdrawal from a Clients’ segregated account.\n    (l) Definition of Client\n    For the purposes of Rule 2.2.6, “Client” excludes a Related Body Corporate or a division of the Market Participant.\n    (m) Property\n      (i) For the purposes of Rule 2.2.6(m), “property” includes credit facilities and securities.\n      (ii) On the receipt of property, a Market Participant must:\n      (A) deposit the property in safe custody on or before the next Business Day after the property is received or deposited;\n      (B) create and maintain the following records:\n      (I) date property received/deposited in safe custody; and\n      (II) particulars of the property so deposited.\n      (iii) A Market Participant must keep Client property segregated from the Market Participant’s own property and Market Participants must be able to liquidate Client property as soon as practicable when required.\n      (iv) A Market Participant must not use property held in safe custody to satisfy a Market Participant’s debt.\n\nMaximum penalty: $1,000,000","sortOrder":13},{"sectionNumber":"2.2.7 Mandatory recording of information","sectionType":"division","heading":"2.2.7 Mandatory recording of information by Market Participants","content":"### 2.2.7 Mandatory recording of information by Market Participants\n\n(1) Recording by Market Participant\n\n    (a) Each Market Participant dealing with Clients must record, via telephone lines and/or other electronic device, at its own expense, all conversations with Clients and other parties relating to Client instructions.\n    (b) Each Market Participant must ensure that internal desks transmit all Orders to the futures desks in such a way that instructions are recorded via a telephone line or other electronic device.\n    (c) Should circumstances arise where a Client has placed instructions in a manner where there is no electronic or other record, the Market Participant must ensure that the Client’s instructions are recorded in some manner.\n    (d) Recordings and records maintained under Rule 2.2.7 must be retained for a minimum three (3) Month period.\n    (e) Where the Representative of the Market Participant having the relevant conversation is doing so from outside Australia, under an arrangement whereby the Market Participant arranges for other Representatives of the global group to take Orders on behalf of the Market Participant during certain hours each Trading Day (“rolling the book”), the Market Participant must maintain recordings and records for the period which is customary for regulated intermediaries conducting similar Trades in that jurisdiction to retain such records.\n    (f) Market Participants must ensure that all equipment used to record, including electronic devices, is functional at all times.\n    (g) For the purposes of this Rule 2.2.7 in respect of a Market Participant which is a Corporation, a “Client” includes a Related Body Corporate or a division of the Market Participant—which is separate from the Market Participant’s futures division.\n\nMaximum penalty: $100,000\n\n2.2.8 Supervisory procedures\n\n(1) A Market Participant must have appropriate supervisory policies and procedures to ensure compliance by the Market Participant and each person involved in its business as a Market Participant with these Rules, the Market Operating Rules and the Corporations Act.\n\n(2) A Market Participant that is a Market Participant on the date this Rule 2.2.8 commences, is not required to comply with this Rule 2.2.8 until a period of three (3) months has passed from the date Rule 2.2.8 commences.\n\nMaximum Penalty: $1,000,000\n\nPart 2.3 Account reconciliation obligations\n\n2.3.1 Application of Part\n\n(1) This Part applies to a Market Participant who holds Client monies.\n\n(2) For the purposes of this Part:\n\n“ASX Clear” means ASX Clear Pty Limited.\n\n“ASX Clear (Futures)” means ASX Clear (Futures) Pty Limited.\n\n“ASX” means ASX Limited (ACN 008 624 691).\n\n“Client” excludes a Related Body Corporate or a division of the Market Participant.\n\n“Clients’ Segregated Account at Bank” means the Total Third Party Client Monies held in the clients’ segregated account relating to futures contracts traded on any exchange.\n\n“Deposits with ASX Clear Client Account” means the total amount of third-party client funds, including margin amounts, lodged with ASX Clear in relation to transactions in futures contracts.\n\n“Deposits with ASX Clear (Futures) Client Account” means the total amount of third-party client funds, including margin amounts, lodged with ASX Clear (Futures) in relation to transactions in futures contracts.\n\n“Deposits with ASX Clear (Futures) Clearing Participant” means the total amount of third-party client funds paid to a Clearing Participant of ASX Clear (Futures) in relation to transactions in futures contracts.\n\n“Deposits with ASX Clear Participant” means the total amount of third-party client funds paid to a participant of ASX Clear in relation to transactions in futures contracts.\n\n“Deposits with an ASX 24 Market Participant” means the total amount of third-party client funds paid to another Market Participant.\n\n“Deposits with an ASX Participant” means the total amount of third-party client funds paid to a participant of ASX in relation to transactions in futures contracts.\n\n“Deposits with an Overseas Broker” means the total amount of third-party client funds lodged with an Overseas Broker in relation to transactions in futures contracts.\n\n“Director/Employee Monies” means, in respect of transactions in futures contracts dealt on any exchange, the total amount of money received from:\n\n    (a) any director, or officer, of the Market Participant; and\n    (b) any employee of the Market Participant.\n\n“Total Deposits” in Rule 2.3.2 means the sum of Rules 2.3.2(2)(c)(i)–(ix); and in Rule 2.3.3 means the sum of Rules 2.3.3(3)(c)(i)-(ix).\n\n“Total Futures Client Monies” means the total amount of money received from Clients in respect of transactions in futures contracts, including amounts relating to futures contracts traded on any exchange.\n\n“Total Third Party Client Monies” means Total Futures Client Monies less Director/Employee Monies.\n\n“Variation” means Total Third Party Client Monies less Total Deposits.\n\n2.3.2 Daily reconciliation of client funds\n\n(1) Subject to Rule 2.3.2(3), a Market Participant must perform an accurate reconciliation, by 7.00 pm on the Business Day after the Business Day to which the reconciliation relates, of the aggregate balance held by it at the close of business on each Business Day in clients’ segregated accounts maintained under Rule 2.2.6 and the corresponding balance as recorded in the Market Participant’s accounting records.\n\n(2) The reconciliation referred to in Rule 2.3.2(1) must set out:\n\n    (a) the date to which the reconciliation relates;\n    (b) for both the day of the reconciliation and the prior day, the dollar amounts of:\n      (i) Total Futures Client Monies;\n      (ii) Director/Employee Monies; and\n      (iii) Total Third Party Client Monies;\n    (c) for both the day of the reconciliation and the prior day, the dollar amounts of:\n      (i) Clients’ Segregated Account at Bank;\n      (ii) Deposits with ASX Clear (Futures) Client Account;\n      (iii) Deposits with ASX Clear Client Account;\n      (iv) Deposits with ASX Clear (Futures) Clearing Participant;\n      (v) Deposits with ASX Clear Participant;\n      (vi) Deposits with an ASX24 Market Participant;\n      (vii) Deposits with an ASX Market Participant;\n      (viii) Deposits with an Overseas Broker;\n      (ix) funds invested in accordance with section 981C(a) of the Corporations Act; and\n      (x) Total Deposits;\n    (d) the dollar amount of the Variation for both the day of the reconciliation and the prior day;\n    (e) the percentage amount of the Variation for both the day of the reconciliation and the prior day;\n    (f) an explanation of the reason for a Variation, if the dollar amount of the Variation is more than, or less than, zero; and\n    (g) where the movement in Total Futures Client Monies is greater than 20% from the prior day, an explanation of the reason.\n\n(3) A Market Participant does not need to comply with Rule 2.3.2 until 1 January 2012.\n\nMaximum penalty: $1,000,000\n\n2.3.3 Monthly reconciliation of client’ funds\n\n(1) Subject to Rule 2.3.3(5), a Market Participant must perform an accurate reconciliation of the aggregate balance held by it at the close of business on the last Business Day of each calendar month in clients’ segregated accounts maintained under Rule 2.2.6 and the corresponding balance as recorded in the Market Participant’s accounting records.\n\n(2) The reconciliation referred to in Rule 2.3.3(1) must be given to ASIC by the last Business Day of the calendar month following the calendar month to which the reconciliation relates.\n\n(3) The reconciliation referred to in Rule 2.3.3(1) must set out:\n\n    (a) the date to which the reconciliation relates;\n    (b) for both the last Business Day of the month of the reconciliation and the last Business Day of the prior month, the dollar amounts of:\n      (i) Total Futures Client Monies;\n      (ii) Director/Employee Monies; and\n      (iii) Total Third Party Client Monies;\n    (c) for both the last Business Day of the month of the reconciliation and the last Business Day of the prior month, the dollar amounts of:\n      (i) Clients’ Segregated Account at Bank;\n      (ii) Deposits with ASX Clear (Futures) Client Account;\n      (iii) Deposits with ASX Clear Client Account;\n      (iv) Deposits with ASX Clear (Futures) Clearing Participant;\n      (v) Deposits with ASX Clear Participant;\n      (vi) Deposits with an ASX 24 Market Participant;\n      (vii) Deposits with an ASX Market Participant;\n      (viii) Deposits with an Overseas Broker;\n      (ix) funds invested in accordance with section 981C(a) of the Corporations Act; and\n      (x) Total Deposits;\n    (d) the dollar amount of the Variation for both the last Business Day of the reconciliation and the last Business Day of the prior month;\n    (e) the percentage amount of the Variation for both the last Business Day of the month of the reconciliation and the last Business Day of the prior month;\n    (f) an explanation of the reason for a Variation, if the dollar amount of the Variation is more than, or less than, zero; and\n    (g) where the movement in Total Futures Client Monies is greater than 20% from the last Business Day of the prior month, an explanation of the reason.\n\n(4) A reconciliation created for the purposes of this Rule 2.3.3 must contain a statement signed by a Director or a person authorised in writing by a Director, stating that the signatory believes, and has no reason not to believe, that the reconciliation is accurate in all respects.\n\n(5) A Market Participant does not need to comply with Rule 2.3.3(1) until 1 January 2012.\n\n> Note: Rule 2.3.3(5) means the first reconciliation required to be given to ASIC under Rule 2.3.3 is for the calendar month ended 31 January 2012, and it must be given to ASIC by 29 February 2012.\n\nMaximum penalty: $1,000,000\n\n2.3.4 Obligation to notify ASIC about daily reconciliation\n\nA Market Participant must notify ASIC, in writing, within 2 Business Days if:\n\n    (a) a reconciliation has not been performed in accordance with Rule 2.3.2;\n    (b) according to a reconciliation performed under Rule 2.3.2, Total Deposits is less than Total Third Party Client Monies; or\n    (c) if it is unable to reconcile its clients’ segregated accounts under Rule 2.3.2.\n\nMaximum penalty: $100,000\n\n2.3.5 Annual declarations for clients' funds\n\n(1) A Market Participant must prepare and give to ASIC within 3 months of the end of the financial year of the Market Participant:\n\n    (a) a directors’ declaration containing the information set out in Form 1 Part 1 of these Rules, authorised in the manner specified in Rule 2.3.5(2); and\n    (b) an auditor’s report containing the information set out in Form 1 Part 2 of these Rules, signed by a partner or director of the audit firm.\n\n(2) For the purposes of this Rule, a directors’ declaration must be authorised by:\n\n    (a) 2 directors of the Market Participant whose names appear in the declaration; or\n    (b) 1 director ('first director') of the Market Participant and 1 representative of the Market Participant ,whose names appear in the declarations, where the representative has been authorised by the board or by a director other than the first director.\n    (c) 2 representatives of the Market Participant whose names appear in the declaration and who have been authorised by the board or each authorised by a different director of the Market Participant to give the declaration.\n\nMaximum penalty: $1,000,000\n\n2.3.6 Scope of audits\n\n(1) A Market Participant must give its auditor access to its premises and Employees and all records, documents, explanations and other information required by the auditor in respect of any audit conducted under Rule 2.3.5(1)(b).\n\n(2) A Market Participant must:\n\n    (a) not impose any limitation on the extent of any audit required under Rule 2.3.5(1)(b); and\n    (b) permit and direct the auditor to notify ASIC immediately if any limitation is imposed on the auditor, or if the auditor is hindered or delayed in the performance of the auditor’s duties.\n\n(3) The records of each of the Market Participant’s nominee companies must be included in the audit under Rule 2.3.5(1)(b).\n\nMaximum penalty: $100,000\n\nPart 2.4 Foreign Participants\n\n2.4.1 Minimum presence requirements\n\n(1) This Rule applies to a Market Participant (“Foreign Market Participant”) that:\n\n    (a) is a foreign entity; and\n    (b) does not hold an Australian Financial Services Licence.\n\n(2) Before entering into a Market Transaction, a Foreign Market Participant must provide ASIC with a deed of the Foreign Market Participant for the benefit of and enforceable by ASIC and the other persons referred to in subsection 659B(1) of the Corporations Act, which deed provides that:\n\n    (a) the deed is irrevocable except with the prior written consent of ASIC;\n    (b) the Foreign Market Participant submits to the non-exclusive jurisdiction of the Australian courts in legal proceedings conducted by ASIC (including under section 50 of the ASIC Act) and, in relation to proceedings relating to a financial services law, by any person referred to in subsection 659B(1) of the Corporations Act and whether brought in the name of ASIC or the Crown or otherwise;\n    (c) the Foreign Market Participant covenants to comply with any order of an Australian court in respect of any matter relating to the activities or conduct of the Foreign Market Participant in relation to the Market or in relation to Financial Products traded on the Market, including but not limited to any matter relating to the Foreign Market Participant’s obligations under:\n      (i) the ASIC Act;\n      (ii) the Corporations Act; and\n      (iii) the Corporations (Fees) Act 2001;\n    (d) if the Foreign Market Participant is not registered under Division 2 of Part 5B.2 of the Corporations Act:\n      (i) the Foreign Market Participant must have at all times an agent who is:\n      (A) a natural person or a company;\n      (B) resident in this jurisdiction; and\n      (C) authorised to accept, on behalf of the Foreign Market Participant, service of process and notices; and\n      (ii) the Foreign Market Participant must notify ASIC of any change to:\n      (A) the agent; or\n      (B) the name and address of the agent (if the agent is a company, address means the address of the registered office of the company); and\n      (iii) service of process on the Foreign Market Participant in relation to legal proceedings conducted by ASIC (including under section 50 of the ASIC Act), and in relation to proceedings relating to a financial services law, by any person referred to in subsection 659B(1) of the Corporations Act and whether brought in the name of ASIC or the Crown or otherwise, can be effected by service on the agent;\n    (e) the deed applies notwithstanding that the Foreign Market Participant may have ceased to be a Market Participant; and\n    (f) such additional terms notified by ASIC to the Foreign Market Participant.\n\n(3) A Foreign Market Participant that is a Market Participant on the date this Rule 2.4.1 commences, is not required to comply with this Rule 2.4.1 until a period of three (3) months has passed from the date Rule 2.4.1 commences.\n\nMaximum penalty: $1,000,000","sortOrder":14}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2923},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The legislation maintains its original scope of regulating market integrity, participant conduct, and client money protection specifically for the ASX 24 futures and derivatives market. The provisions align with the stated purpose of governing activities on this specific market and protecting client assets."},"complexity_factors":["45+ defined terms incorporating external legislation (Corporations Act 2001 and Corporations Regulations 2001)","Extensive cross-referencing to externally defined documents (Market Operating Rules and Clearing Rules)","Nested conditional logic in waiver provisions (Rule 1.2.1 with 6 subclauses) and client agreement exceptions (Rule 2.2.5)","Detailed accounting reconciliation obligations requiring 10+ specific data points tracked daily and monthly (Rules 2.3.2, 2.3.3)","Dual-tier penalty structure distinguishing procedural breaches ($100,000) from client money/financial breaches ($1,000,000)","Overlapping regulatory obligations requiring compliance with both these Rules and the underlying Corporations Act simultaneously"],"plain_english_summary":"These rules govern how the ASX 24 derivatives market operates, setting conduct, risk‑management, recordkeeping, and client‑money protections for the market operator, brokers, foreign participants and their clients. They require segregated client funds, detailed trade and communication records, supervisory controls and limits on client concentration, and make overseas brokers subject to Australian jurisdiction. ASIC can grant published waivers subject to strict conditions and penalties."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"No change to scope is indicated within the provided text. The instrument expressly defines its scope as applying to (a) the Market’s activities, (b) persons in relation to the Market, and (c) persons in relation to Financial Products traded on the Market (Rule 1.1.4)."},"complexity_factors":["Extensive cross‑references to the Corporations Act, Corporations Regulations and ASX operating/clearing rules (Rule 1.4.2; definitions in 1.4.3) increase interpretive complexity.","Large set of detailed definitions that determine application to different actors and instruments (Rule 1.4.3).","Prescriptive client‑money and custody regime with permitted investments, segregation, and prohibition on netting (Rule 2.2.6).","Frequent, precise reconciliation and reporting timelines (daily by 7.00pm, monthly to ASIC) with high monetary penalties (Rules 2.3.2–2.3.4; penalties up to $1,000,000).","Lengthy recordkeeping and audio/electronic recording obligations, retention periods and audit access (Rules 2.2.4; 2.2.7; 2.3.5–2.3.6).","ASIC discretion to grant, condition, withdraw and publish waivers plus a register creates administrative discretion and conditional compliance risk (Rules 1.2.1; 1.2.4; 1.2.2).","Special rules for foreign participants requiring deeds, local agents and submission to Australian jurisdiction (Rule 2.4.1).","Multiple transitional or phased compliance dates and carve‑outs for Principal Traders or existing participants (e.g. Rules 2.2.8; 2.3.2(3) and 2.3.3(5)).","Varied maximum penalties across provisions (from $100,000 to $1,000,000) require granular compliance prioritisation."],"plain_english_summary":"These Rules set operational and integrity requirements for the ASX 24 market and bind the Market Operator, Market Participants and other regulated entities. They require market access and notice systems, client agreements, segregation of client funds, detailed recordkeeping and daily/monthly reconciliations, and attach civil penalties for non‑compliance (see Rules 1.1.5; 1.3.1; 2.2.5; 2.2.6; 2.3.2).\n\nMarket Participants pay most compliance costs and face monetary penalties (up to $1,000,000 for some breaches); ASIC may grant, condition or withdraw waivers and publish relief (Rule 1.2.1). The Rules rely on and cross‑refer to the Corporations Act and ASX operating/clearing rules, creating coordination and oversight obligations (Rule 1.4.2)."}},"importantCases":[],"_links":{"self":"/api/acts/asic-market-integrity-rules-asx-24-market-2010","history":"/api/acts/asic-market-integrity-rules-asx-24-market-2010/history","analysis":"/api/acts/asic-market-integrity-rules-asx-24-market-2010/analysis","conflicts":"/api/acts/asic-market-integrity-rules-asx-24-market-2010/conflicts","importantCases":"/api/acts/asic-market-integrity-rules-asx-24-market-2010/important-cases","documents":"/api/acts/asic-market-integrity-rules-asx-24-market-2010/documents"}}