{"id":"F2016L01501","name":"Corporations (Low Volume Financial Markets) Instrument 2016/888","slug":"corporations-low-volume-financial-markets-instrument-2016-888","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":438953,"registerId":"F2016L01501-fast-fetch-1775955157338","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Corporations (Low Volume Financial Markets) Instrument 2016/888","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: Corporations (Low Volume Financial Markets) Exemption Notice - DRAFT remake\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\nCorporations (Low Volume Financial Markets) Instrument 2016/888\n\nI, Grant Moodie, delegate of the Minister for Revenue and Financial Services, make the following legislative instrument.\n\n \n\nDate  22 September 2016\n\n \n\n \n\nGrant Moodie\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc462294929)\n\n[1 Name of legislative instrument](#_Toc462294930)\n\n[2 Commencement](#_Toc462294931)\n\n[3 Authority](#_Toc462294932)\n\n[4 Definitions](#_Toc462294933)\n\n[Part 2—Exemption](#_Toc462294934)\n\n[5 Exemption from the requirement to hold an Australian market licence](#_Toc462294935)\n\n[6 Conditions](#_Toc462294936)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the Corporations (Low Volume Financial Markets) Instrument 2016/888.\n\n2 Commencement\n\nThis instrument commences on the later of:\n\n(a) 30 September 2016; \n\n(b) the date of its gazettal;\n\n(c) the day after it 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 subsection 791C(1) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nlow volume financial market means a financial market on which:\n\n(a) no more than 100 completed transactions are entered into; and\n\n(b) the value of the transactions entered into does not exceed $1.5 million;\n\nin the 12 month period commencing on the date the financial market was named in the register or any subsequent 12 month period.\n\nregister means the register of entities that is established and kept by ASIC for the purposes of section 791C of the Act in relation to low volume financial markets.\n\nPart 2—Exemption\n\n5 Exemption from the requirement to hold an Australian market licence\n\n(1) A low volume financial market whose operator is named on the register in relation to the market is exempt from the operation of Part 7.2 of the Act.\n\n(2) An operator of a low volume financial market must comply with the conditions in relation to the market.\n\n(3) A failure to comply with a condition does not have the effect that the market is not exempt from the operation of Part 7.2 of the Act.\n\nNote: ASIC may remove from the register the name of an operator of a financial market and of the details in relation to the market. If ASIC takes such action, the financial market is no longer exempt from the operation of Part 7.2 of the Act from the day the name and details are removed.\n\n6 Conditions\n\nOperating a financial market\n\n(1) The operator must ensure that it and its associates:\n\n(a) do not operate more than 2 financial markets to which this instrument applies; and\n\n(b) do not operate a licensed market.\n\nFinancial products\n\n(2) The operator must ensure that the financial products able to be traded on the financial market satisfy the following:\n\n(a) the financial products must be issued by the same person who must  be either the operator or an issuer who has appointed the operator to operate the financial market;\n\nNote: This paragraph applies to each financial market. If the operator operates 2 financial markets to which this instrument applies, the issuer of the financial products that are able to be traded on one market need not be the same as the issuer of the financial products that are able to be traded on the other market, provided those issuers are either the operator of the markets or an issuer who has the appointed the operator.\n\n(b) the financial products are of a kind mentioned in paragraphs 764A(1)(a), (b) or (ba) of the Act;\n\n(c) the financial products are not able to be traded on a licensed market.\n\n \n\nFacilities for execution of orders\n\n(3) The operator must ensure that the financial market does not have a mechanism for:\n\n(a) the automatic execution of orders; or\n\n(b) the automatic formation of contracts between market users that enter into a transaction through the market.\n\nSettlement service\n\n(4) The operator of the financial market must not handle the purchase money for the settlement of a transaction entered into through the market unless the operator holds an Australian financial services licence that authorises it to deal in the financial product to which the transaction relates.\n\nInformation to be given to new users\n\n(5) Before a person uses the financial market for the first time, the operator of the market must give a written notice to the person containing statements to the following effect:\n\n(a) the market is covered by an exemption under section 791C of the Act;\n\n(b) the operator of the market is not licensed under Part 7.2 of the Act;\n\n(c) the operator is not subject to the legal obligations that apply to the operator of a licensed market, including the requirement, to the extent that it is reasonably practicable to do so, to do all things necessary to ensure that the market is a fair, orderly and transparent market.\n\nASIC to be informed of changes to market\n\n(6) The operator of the financial market must inform ASIC, in writing, of any significant change to the operation of the market as soon as practicable after the change occurs.\n\nNotifying ASIC about non-compliance with conditions\n\n(7) The operator of the financial market must notify ASIC in writing if the operator fails to comply with any of the conditions in this instrument. The operator must notify ASIC as soon as practicable after the operator becomes aware of the failure.\n\nAssistance to ASIC\n\n(8) The operator of the financial market must comply with a request from ASIC to assist in monitoring and supervising compliance with the conditions, including giving ASIC a copy of any records about the operation of the market and allowing ASIC access to any premises of a facility by means of which the market is conducted.\n\nAnnual report\n\n(9) The operator of the financial market must give a written report to ASIC within 45 days after each anniversary of the date it was named in the register which includes the following information:\n\n(a) the total number and total value (calculated by reference to sale price) of transactions carried out on the market in each month during the 12 months immediately before the date of the anniversary; and\n\n(b) the number of users of the market in the 12 months immediately before the anniversary.\n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The instrument narrows the practical reach of the Part 7.2 licensing requirement by creating a conditional exemption for registered low‑volume markets (s5). It replaces universal licensing for those specific, low‑volume markets with a set of operational, reporting and cooperation conditions that shift compliance burdens onto operators and supervisory discretion onto ASIC (s5, s6)."},"complexity_factors":["Defined quantitative eligibility threshold (≤100 transactions and ≤$1.5m in any 12‑month period) that must be measured from the date the market was named on the register (s4).","Exemption depends on being named on ASIC’s register and ASIC’s continuing discretion to remove names (s5 and Note to s5).","Multiple operational limits on operators and their associates, including a cap of 2 exempt markets and prohibition on operating a licensed market (s6(1)).","Restrictions on tradable products: they must be issued by the operator or an appointing issuer and be of specific kinds under the Act, and not tradable on licensed markets (s6(2)).","Prohibition on automated execution or automatic contract formation requires manual or non‑automated trade processes (s6(3)).","Settlement handling rule: operator cannot handle purchase money unless it holds an AFSL authorising dealing in the product (s6(4)), creating an interface with AFSL requirements.","Notification, reporting and assistance obligations: written notice to new users (s6(5)), prompt written notice to ASIC of significant changes and non‑compliance (s6(6)–(7)), compliance with ASIC monitoring requests (s6(8)), and an annual report with transaction counts and values within 45 days of each anniversary (s6(9)).","Some terms and cross‑references are external to the instrument (for example, \"associates\", the specific product kinds in s764A and the scope of Part 7.2), producing interpretive dependence on the Corporations Act and related provisions (s3, s6(2)(b)).","Non‑compliance does not automatically void the exemption, but triggers reporting and ASIC oversight, which creates operational ambiguity about enforcement outcomes (s5(3), s6(7)–(8))."],"plain_english_summary":"This instrument exempts certain \"low volume financial markets\" from the Part 7.2 Australian market‑licensing requirement when the market operator is named on ASIC’s register. A low volume market is defined by transaction count (≤100) and value (≤$1.5m) in each 12‑month period.\n\nRegistered operators avoid licensing but must follow operational rules (limit of two markets, issuer restrictions, no automated order execution, no handling of settlement funds unless holding an AFSL), provide annual reports, notify ASIC of changes and non‑compliance, and assist ASIC on request."},"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":3,"scope_assessment":{"changed":false,"description":"The instrument remains tightly scoped to its original purpose of exempting very small financial markets from licensing requirements. The conditions (transaction limits, product restrictions, manual processing requirements) directly support this narrow purpose without scope creep."},"complexity_factors":["Short instrument with only 6 operative sections","Single defined term ('low volume financial market') with clear numerical thresholds (100 transactions, $1.5 million)","Straightforward conditional structure: exemption applies if named on register + conditions are met","No cross-references to other legislative instruments beyond the parent Corporations Act","Conditions are listed sequentially without nested exceptions or complex logical operators","Plain language drafting with explanatory notes for key provisions"],"plain_english_summary":"This instrument creates a light-touch exemption for very small Australian financial markets: markets meeting low annual transaction and value thresholds can be registered with ASIC instead of holding a full market licence. It helps niche operators cut compliance costs but reduces investor protections and imposes run, product, processing and reporting conditions and ASIC oversight; the exemption can be revoked if the market grows or breaches rules."}},"importantCases":[],"_links":{"self":"/api/acts/corporations-low-volume-financial-markets-instrument-2016-888","history":"/api/acts/corporations-low-volume-financial-markets-instrument-2016-888/history","analysis":"/api/acts/corporations-low-volume-financial-markets-instrument-2016-888/analysis","conflicts":"/api/acts/corporations-low-volume-financial-markets-instrument-2016-888/conflicts","importantCases":"/api/acts/corporations-low-volume-financial-markets-instrument-2016-888/important-cases","documents":"/api/acts/corporations-low-volume-financial-markets-instrument-2016-888/documents"}}