Part 35 Trading principles for Exchange For Physical transactions

Part 3.5 Trading principles for Exchange For Physical transactions

3.5.1 Prohibitions

No Exchange For Physical transaction may be effected:

where the parties to each side of the physical transaction are the same or are acting on behalf of the same person; or
where both sides of the Futures Contract are taken out by the same Market Participant on its own account or are taken out on behalf of the same Client.

Maximum penalty: $100,000

3.5.2 Evidence of physical transaction

(1) Subject to Rule 3.5.2(2) where either a Market Participant or its Client is a party to an Exchange For Physical transaction, the Market Participant must ensure that evidence of the physical transaction, as set out in the Market Operating Rules, is obtained by the Market Participant.

(2) The requirements under Rule 3.5.2(1) can alternately be met by undertaking the following procedures:

retaining and maintaining an updated list of Representatives authorised to register Exchange For Physical transactions on behalf of the Market Participant;
obtaining and retaining executed copies of a Client undertaking which contains undertakings from the Client including that the Client will provide to the Market Participant full details of the physical transaction (including documentary evidence) which attach to Exchange For Physical transactions effected by the Market Participant on behalf of the Client; and
requesting appropriate physical evidence on an “as needs basis” from the Client if the Market Participant is required to demonstrate compliance with this Rule.

Maximum penalty: $100,000

3.5.3 Client authorisation

Before executing an Exchange For Physical Order on behalf of a Client, a Market Participant must be authorised In Writing by the Client to do so either specifically or generally.

Maximum penalty: $100,000

Chapter 4: The Market Operator

Part 4.1 Provision of surveillance and supervision data by the Market Operator

4.1.1 Data provision to assist surveillance of activities and conduct on the Market

(1) Data to assist surveillance of activities and conduct on Market

The Market Operator must deliver to ASIC, or to a service provider nominated by ASIC and notified to the Market Operator in accordance with Rule 4.1.2, all data items as generated on or by its Trading Platform, being:

Order price and volume entries;
Order modifications;
Order cancellations;
trade price and volume entries;
trade type;
“Firm ID” and “Trader ID” code or other broker number and identifier code, where available; and
information as containing details of the Contracts traded through the Trading Platform, being:

      contract codes;
      time stamps on all Order entries, trades, amendments, cancellations and deletions;
      unique order and deal (or trade) identifier data;
      Order type;
      Order characteristics; and
      such additional data items or fields notified by ASIC to the Market Operator under Rule 4.1.2 and which are generated on or by the Market Operator’s Trading Platform, but a Market Operator is not required to provide those additional data items or fields unless they are generated on or by the Market Operator’s Trading Platform.