{"id":"F2018L00519","name":"ASIC Market Integrity Rules (Futures Markets) Class Waiver 2018/265","slug":"asic-market-integrity-rules-futures-markets-class-waiver-2018-265","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439587,"registerId":"F2018L00519-fast-fetch-1775955556630","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Market Integrity Rules (Futures Markets) Class Waiver 2018/265","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.jpeg)\n\nASIC Market Integrity Rules (Futures Markets) Class Waiver 2018/265\n\nI, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate 23 April 2018\n\n \n\n \n\nAnthony Graham\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc512243339)\n\n[1 Name of legislative instrument](#_Toc512243340)\n\n[2 Commencement](#_Toc512243341)\n\n[3 Authority](#_Toc512243342)\n\n[4 Definitions](#_Toc512243343)\n\n[Part 2—Waiver](#_Toc512243344)\n\n[5 Calling Initial Margin](#_Toc512243345)\n\n[6 Satisfaction of Calls for Margin](#_Toc512243346)\n\n[7 Time for payment of Margins](#_Toc512243347)\n\n[8 Obligation of Close Out](#_Toc512243348)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Market Integrity Rules (Futures Markets) Class Waiver 2018/265.\n\n2 Commencement\n\nThis instrument commences on the later of:\n\n(a) 7 May 2018;\n\n(b) the day after this instrument is registered on the Federal Register of Legislation.\n\nNote: The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au).\n\n3 Authority\n\nThis instrument is made under subrule 1.2.1(1) of the ASIC Market Integrity Rules (Futures Markets) 2017 (Rules).\n\n4 Definitions\n\n(1) In this instrument:\n\nApproved Collateral means securities or other collateral or property accepted by ASX Clear (Futures) under the Clearing Rules.\n\nCover means cash and/or Approved Collateral held by a Market Participant against a Client’s liability from time to time.\n\n(2) In this instrument, unless the contrary intention appears, capitalised terms have the same meaning as in the Rules.\n\n  \n\nPart 2—Waiver\n\n5 Calling Initial Margin\n\nA Trading Participant of the ASX 24 Market which has agreed to accept and has received Cover by way of Approved Collateral does not have to comply with subrule 7.2.2(4) of the Rules.\n\nNote:  This waiver does not affect a Trading Participant’s obligations under subrules 7.2.2(1) to (3) of the Rules.\n\n6 Satisfaction of Calls for Margin\n\nWaiver\n\n(1) A Trading Participant of the ASX 24 Market which has agreed to accept Cover by way of Approved Collateral does not have to comply with any of the following provisions of the Rules:\n\n(a) subrule 7.2.5(1);\n\n(b) subrule 7.2.5(2);\n\n(c) subrule 7.2.5(3).\n\nConditions\n\n(2) It is a condition of the relief in paragraph (1)(a) that the Trading Participant’s Client agreement must provide that Calls for Initial Margin and Variation Margin must be satisfied by payment unless the Trading Participant agrees to accept, in lieu of payment, Approved Collateral.\n\n(3) It is a condition of the relief in paragraph (1)(b) that the Trading Participant’s Client agreement must provide that:\n\n(a) Approved Collateral received as Cover shall be retained by the Trading Participant until such time as the liability of the Client is extinguished either by the relevant contracts being Closed Out or payment being made by a Buyer or delivery in accordance with the Rules being effected by a Seller; and\n\n(b) if the liability of the Client is not extinguished, as set out in paragraph (a), then the Approved Collateral may be realised by the Trading Participant and the proceeds applied against that liability.\n\n(4) It is a condition of the waiver in paragraph (1)(c) that the Trading Participant must ensure the liability of a Client for Initial Margin is Covered at all times.\n\nNote:  The conditions imposed on a waiver must be complied with in order for the waiver to be effective: subrule 1.2.1(2) of the Rules.\n\n7 Time for payment of Margins\n\nWaiver\n\n(1) A Trading Participant of the ASX 24 Market which has agreed to accept Cover by way of Approved Collateral does not have to comply with Rule 7.2.6 of the Rules.\n\nConditions\n\n(2) It is a condition of the relief in subsection (1) that:\n\n(a)  where a Call is made for Initial or Variation Margin, the Trading Participant must stipulate the time for payment or lodgement of Approved Collateral, which must not be greater than:\n\n(i) 24 hours if the Client’s address is within Australia; or\n\n(ii) 48 hours if the Client’s address is outside Australia; and\n\n(b) the Trading Participant must not provide credit for a Client beyond the periods specified in subparagraphs (2)(a)(i) and (ii) unless:\n\n(i) permitted by Rule 7.2.10 of the Rules; or\n\n(ii) the Trading Participant exercises a reasonable discretion not to Close Out having regard to:\n\n(A) the expertise and financial status of the Client; and\n\n(B) any genuine attempts by the Client to meet the Call within the time prescribed; and\n\n(C) whether relevant actions or omissions of third parties resulted in the Client failing to pay the Call; and\n\n (c) the Trading Participant’s Client agreement must provide that time shall be of the essence in respect of payment or lodgement under Part 7.2 of the Rules.\n\nNote:  The conditions imposed on a waiver must be complied with in order for the waiver to be effective: subrule 1.2.1(2) of the Rules.\n\n\n8 Obligation of Close Out\n\nWaiver\n\n(1) A Trading Participant of the ASX 24 Market which has agreed to accept Cover by way of Approved Collateral does not have to comply with Rule 7.2.8 of the Rules.\n\nCondition\n\n(2)  It is a condition of the waiver in subsection (1) that:\n\n(a)  where a Client is in default by failing to pay a Call (or lodge Approved Collateral) within the time stipulated by the Trading Participant, the Trading Participant must, immediately upon expiry of that time period, Close Out to the extent necessary to counter the Call, all or any existing Open Positions in any Market held by the Trading Participant on account of the Client unless the Trading Participant exercises a reasonable discretion to not Close Out having regard to:\n\n(i) the expertise and financial status of the Client; and\n\n(ii) any genuine attempts by the Client to meet the Call within the time prescribed; and\n\n(iii) whether relevant actions or omissions of third parties resulted in the Client failing to pay the Call; and\n\n(b) the Trading Participant’s Client agreement must provide that the Trading Participant shall not be liable to the Client for any loss sustained by the Client as a result of the Trading Participant Closing Out in accordance with paragraph (a).\n\nNote:  The conditions imposed on a waiver must be complied with in order for the waiver to be effective: subrule 1.2.1(2) of the Rules.\n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument remains tightly scoped to its original purpose: providing targeted relief from specific margin and close-out obligations in the Futures Markets Rules for Trading Participants who accept non-cash collateral. It does not expand beyond the ASX 24 Market or the specific Rules mentioned in Part 2. The conditions ensure the waiver operates as a controlled exception rather than a broad deregulation."},"complexity_factors":["Moderate cross-referencing: Relies heavily on undefined subrules of the ASIC Market Integrity Rules (Futures Markets) 2017 (e.g., subrules 7.2.2(4), 7.2.5(1)-(3), Rules 7.2.6, 7.2.8, 7.2.10) — understanding this instrument requires access to the underlying Rules","Conditional logic: Every waiver in Part 2 is contingent on specific conditions being met, with nested sub-conditions (e.g., section 7(2)(b)(ii)(C) goes four levels deep)","Defined terms with external dependencies: Two defined terms in section 4, plus incorporation by reference of all capitalised terms from the underlying Rules","Discretionary safeguards: Multiple \"reasonable discretion\" exceptions requiring assessment of client expertise, financial status, and third-party actions — these create subjective standards that require interpretive guidance","Temporal complexity: Different time limits for domestic (24 hours) vs international (48 hours) clients, plus exceptions to those time limits"],"plain_english_summary":"This instrument lets ASX 24 Trading Participants accept non‑cash collateral and loosen certain cash‑margin, timing and close‑out obligations under the ASIC Futures Market rules, subject to strict conditions. It affects brokers and their clients trading futures: it increases flexibility to use securities/property as margin while requiring robust client agreements, ongoing coverage, and disciplined close‑out and risk management. The aim is greater competitiveness with safeguards against abuse."},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"This instrument narrows the application of several Part 7.2 obligations for ASX 24 Trading Participants that agree to accept Approved Collateral by granting waivers (see ss 5–8). Mechanically, it substitutes default cash payment and automatic timing/close‑out rules with contract‑based terms: clients must generally pay unless the participant accepts Approved Collateral; collateral may be retained and realised until liabilities are extinguished (6(3)); payment/lodgement windows are capped at 24/48 hours (7(2)(a)); and immediate Close Out is required on expiry unless the participant exercises a reasonable discretion using listed factors (8(2)(a)). The result shifts payment risk and decision authority to Trading Participants and imposes specific client‑agreement and operational compliance duties on them."},"complexity_factors":["Multiple cross‑references to the ASIC Market Integrity Rules (Futures Markets) 2017 — the waiver selectively removes compliance obligations under Rules 7.2.2(4), 7.2.5(1)–(3), 7.2.6 and 7.2.8 (see instrument ss 5–8).","Relief is conditional on detailed client‑agreement terms (instrument 6(2)–(3), 7(2)(c), 8(2)(b)), creating legal drafting and disclosure obligations for Trading Participants.","Operational timing constraints distinguish domestic and international clients (instrument 7(2)(a): 24 hours v 48 hours), increasing operational complexity for global clients.","Trading Participants have an express but constrained discretionary power to delay Close Out, subject to factors to consider (instrument 7(2)(b)(ii) and 8(2)(a)(i)–(iii)), requiring judgment calls and recordkeeping.","Requirements on retention and realisation of Approved Collateral (instrument 6(3)(a)–(b)) impose custody and enforcement steps that affect liquidity and recovery processes.","Effectiveness of the waiver depends on strict compliance with the conditions (repeated notes invoking subrule 1.2.1(2)), raising legal risk if conditions are not precisely met."],"plain_english_summary":"This instrument lets ASX 24 Trading Participants who accept Approved Collateral treat certain margin rules differently: some mandatory calling, timing and close‑out provisions in Part 7.2 of the Rules are waived if the participant’s client agreements include specified terms. It affects Trading Participants and their clients by changing how and when margin must be paid or lodged, who can retain or realise collateral, and when positions must be closed out — shifting operational, credit and compliance responsibilities between participants and clients."}},"importantCases":[],"_links":{"self":"/api/acts/asic-market-integrity-rules-futures-markets-class-waiver-2018-265","history":"/api/acts/asic-market-integrity-rules-futures-markets-class-waiver-2018-265/history","analysis":"/api/acts/asic-market-integrity-rules-futures-markets-class-waiver-2018-265/analysis","conflicts":"/api/acts/asic-market-integrity-rules-futures-markets-class-waiver-2018-265/conflicts","importantCases":"/api/acts/asic-market-integrity-rules-futures-markets-class-waiver-2018-265/important-cases","documents":"/api/acts/asic-market-integrity-rules-futures-markets-class-waiver-2018-265/documents"}}