Introduction
Chapter 1: Introduction
Part 1.1 Preliminary
1.1.1 Enabling legislation
ASIC makes this instrument under subsection 798G(1) of the Corporations Act.
1.1.2 Title
This instrument is ASIC Market Integrity Rules (Securities Markets) 2017.
1.1.4 Scope of these Rules
These Rules apply to:
the activities or conduct of the Markets;
(b) the activities or conduct of persons in relation to the Markets; and
(c) the activities or conduct of persons in relation to financial products traded on the Markets,
as specified in each Chapter, Part or Rule.
1.1.4A Transitional
(1) A person other than an NSXA AOP Participant does not have to comply with any provision of this instrument until 7 May 2018.
(2) An NSXA AOP Participant does not have to comply with any provision of this instrument other than, in connection with use of its system for Automated Order Processing on the NSXA Market, the provisions of Parts 5.5, 5.6 and 5.7, until 7 May 2018.
1.1.5 Entities that must comply with these Rules
The following entities must comply with these Rules:
Market operators;
Market Participants;
CGS Market operators;
CGS Market Participants; and
(e) Other Regulated Entities;
as specified in each Rule.
1.1.5A Penalties for a contravention of these Rules
The maximum pecuniary penalty payable for a contravention of a provision of these Rules is an amount determined by the Court under section 1317G of the Corporations Act.
1.1.6 Conduct by officers, Employees or agents
In these Rules, conduct engaged in on behalf of a person:
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
(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,
is deemed to have been engaged in by the person.
1.1.7 State of mind of a person
(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.
(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.
1.1.8 Application for review by Administrative Review Tribunal of certain decisions made under these Rules
(1) Subject to this Rule, applications may be made to the Tribunal for review of a decision made by ASIC under:
(a) subrule 1.2.1(1); or
(b) subrule 1.2.1(3); or
(c) paragraph 2.6.1(2)(f)); or
(d) paragraph 3.3.1(d); or
(e) paragraph 3.4.1(2)(c); or
(f) subrule 3.5.4(1); or
(g) subrule 3.5.4(2); or
(h) paragraph 3.7.3(2)(a); or
(i) subrule 4.3.1(2); or
(j) subrule 4.3.1(3); or
(k) subrule 4.3.2(1); or
(l) subrule 4.3.2(2); or
(m) paragraph 5.6.6(1)(b); or
(n) subrule 5.6.11(1); or
(o) subrule 5.6.12(2); or
(p) rule 5.9.2; or
(q) subrule 7.1.1(1); or
(r) paragraph 7.1.1(2)(h); or
(s) subrule 7.1.1(3); or
(t) paragraph 7.1.1(4)(a); or
(u) paragraph 7.1.1(4)(b); or
(v) subrule 7.1.1(5); or
(w) subrule 8.1.1(3); or
(x) subrule 8.1.4(3); or
(y) rule 9.5.3.
(2) An application made under subrule (1) may only be made by:
(a) in relation to paragraphs (a) and (b):
the Market Participant that made the application for a waiver of a Rule under Rule 1.2.1;
(b) in relation to paragraph (c):
the Foreign Market Participant in respect of which the decision by ASIC was made;
(c) in relation to paragraph (d):
the Market Participant that requested ASIC’s permission under paragraph 3.3.1(d);
(d) in relation to paragraphs (f) and (g):
the Market Participant that made the application for ASIC approval of a foreign bank for the handling of client money under subrule 3.5.4(1);
(e) in relation to paragraphs (e), (h) to (l):
the Market Participant in respect of which the decision by ASIC was made;
(f) in relation to paragraphs (m) to (p):
the Trading Participant in respect of which the decision by ASIC was made;
(g) in relation to paragraphs (q) to (y):
the Market operator in respect of which the decision by ASIC was made.
(3) In this Rule:
decision and Tribunal have the same meaning as in the Administrative Review Tribunal Act 2024.
1.1.9 Notice of reviewable decision and review rights
(1) This Rule applies if ASIC makes a decision to which Rule 1.1.8 applies.
(2) ASIC must take such steps as are reasonable in the circumstances to give to each person who may make an application for review of the decision under Rule 1.1.8 notice, in writing or otherwise:
(a) of the making of the decision; and
(b) of the person’s right to have the decision reviewed by the Tribunal.
(3) A failure to comply with this Rule does not affect the validity of the decision.
Part 1.2 Waiver
1.2.1 Waiver of Rules
(1) Subject to Rule 1.2.3, ASIC may, by legislative instrument, 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.
(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.
(3) ASIC may withdraw, by legislative instrument, a waiver given under subrule (1) at any time.
(4) Any request by a person for a waiver under subrule (1) must be in writing.
Note: Legislative instruments made under this rule are available on the Federal Register of Legislation. The register may be accessed at www.legislation.gov.au.
1.2.2 Compliance with conditions
Failure to comply with a condition imposed under Rule 1.2.1 is a contravention of this Rule.
1.2.3 Period during which relief applies
ASIC may specify the period or specific event during which any relief from an obligation to comply with a provision of these Rules may apply.
1.2.4 Register
(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:
the date that the relief takes effect;
(b) the person or class of persons relieved from the obligation;
(c) the provision to which the relief applies;
(d) brief reasons for the relief; and
(e) any conditions that apply to the relief.
(2) ASIC may publish the register referred to in subrule (1).
Part 1.3 Notice, notification and service of documents
1.3.1 Market Participant to have email system
A Market Participant must acquire and maintain an operating email system for the purposes of receiving notices under these Rules.
1.3.2 Methods of giving notice in writing
Unless otherwise specified in a Rule, ASIC may give a notice under these Rules by any of the following methods:
delivering it to the recipient personally;
(b) leaving it at or by sending it by courier or post to the address of the recipient last notified to ASIC;
(c) sending it by facsimile to the recipient’s facsimile number last notified to ASIC;
(d) a circular or bulletin addressed to a class of persons and delivered or communicated by any means permitted under this Rule;
(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;
(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.
Part 1.4 Interpretation
1.4.1 References to time
In these Rules a reference to time is to the time in Sydney, Australia.
1.4.2 Words and expressions defined in the Corporations Act
Words 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.
1.4.3 Definitions
Accreditation Examination means an examination approved by ASIC in accordance with subrule 2.4.7(4) or 2.4.8(4).
Accredited Adviser means:
a Level One Accredited Derivatives Adviser;
(b) a Level Two Accredited Derivatives Adviser; or
(c) an Accredited Futures Adviser.
Accredited Futures Adviser means a person who has been accredited under Rule 2.4.6 and whose accreditation is current.
AFSL means an Australian financial services licence granted under section 913B of the Corporations Act.
Anomalous Order means a:
(a) Buy Order for which the price is above the maximum Anomalous Order Threshold for the relevant Equity Market Product or CGS Depository Interest; and
(b) Sell Order for which the price is below the minimum Anomalous Order Threshold for the relevant Equity Market Product or CGS Depository Interest.
Anomalous Order Threshold means a threshold for an Equity Market Product or a CGS Depository Interest, determined under subrule 8.1.1(1).
AOP Annual Notification has the meaning given by subrule 5.6.8B(1).
AOP Annual Review has the meaning given by Rule 5.6.8A.
AOP Annual Review Date means 1 November each calendar year.
AOP Client means a person who is a client of a Participant and who is permitted by a Participant to submit Trading Messages into the Participant’s system.
AOP Initial Certification has the meaning given by Rule 5.6.6.
AOP Material Change Review has the meaning given by subrule 5.6.8(1).
Approved Ratings Agency means a credit rating agency holding an AFSL authorising it to give general advice by issuing a credit rating.
AQUA Product means a financial product which is:
a financial product issued by or provided pursuant to a Managed Fund;
an ETF Security; or
a Structured Product;
which is admitted to Trading Status as an AQUA Product or to the AQUA Quote Display Board.
AQUA Product Issuer means an entity which issues, distributes or makes available AQUA Products and which has been admitted as an AQUA Product Issuer.
AQUA Quote Display Board means the facility provided by a Market operator for AQUA Product Issuers and Trading Participants to advertise their interest in acquiring or disposing of AQUA Products.
ASIC means the Australian Securities and Investments Commission.
ASIC Act means the Australian Securities and Investments Commission Act 2001.
ASX means ASX Limited (ACN 008 624 691).
ASX 24 means Australian Securities Exchange Limited (ACN 000 943 377).
ASX 24 Market means the financial market operated by ASX 24 under Australian Market Licence (Australian Securities Exchange Limited) 2002.
ASX Market means the financial market operated by ASX under Australian Market Licence (ASX Limited) 2002.
ASX TradeMatch means the Order Book operated by ASX and generally known as “ASX TradeMatch”, that is the Central Order Book of ASX for Equity Market Products.
Auction means an auction conducted in a Trading Platform and, in Part 8.2 of these Rules, means:
(a) in relation to an Equity Market Product, an auction in the Equity Market Product on ASX TradeMatch; and
(b) in relation to CGS Depository Interests, an auction in the CGS Depository Interest on the Central Order Book of the Responsible Market Operator for CGS Depository Interests.
Authorised Person means a person who:
is either:
a client of a Trading Participant;
(ii) an agent of a client of a Trading Participant; or
(iii) a Representative of a Trading Participant; and
(b) is permitted by a Trading Participant to submit orders into the Trading Participant’s system.
Automated Client Order Processing is the Automated Order Processing of an order submitted by an Authorised Person into a Trading Participant’s system.
Automated Order Processing means the process by which orders are registered in a Trading Participant’s system and, if accepted for submission into a Trading Platform by the Trading Participant, submitted as corresponding Trading Messages without being keyed or rekeyed by a DTR.
Automated Order Processing Requirements means the requirements of Part 5.6.
Best Available Bid, in relation to a transaction in Equity Market Products or CGS Depository Interests, means the highest Pre-Trade Transparent Bid, for Equity Market Products or CGS Depository Interests in the same class as the Equity Market Products or CGS Depository Interests the subject of the transaction, available across all Order Books at the time the transaction is executed.
Best Available Offer, in relation to a transaction in Equity Market Products or CGS Depository Interests, means the lowest Pre-Trade Transparent Offer, for Equity Market Products or CGS Depository Interests in the same class as the Equity Market Products or CGS Depository Interests the subject of the transaction, available across all Order Books at the time the transaction is executed.
Best Mid-Point means:
(Best Available Bid + Best Available Offer) ÷ 2.
Bid means:
in relation to a Cash Market Product, a price and quantity of the Cash Market Product to be purchased;
(b) in relation to a Derivatives Market Contract, an offer to enter into a Derivatives Market Transaction in respect of the relevant Derivatives Market Contract as Buyer;
(c) in relation to a Combination, a price and quantity of the Combination; and
(d) in relation to any other financial product, a price and quantity of the financial product to be purchased.
Bid Class means, in relation to a Takeover Bid, the class of financial products included in the bid class of financial products under the Corporations Act.
Bidder means:
in relation to a Takeover Off-Market Bid or Takeover Market Bid, a bidder within the meaning of the Corporations Act and, in respect of an Issuer incorporated or established outside Australia, the equivalent entity; and
(b) in relation to a Scheme, the entity or entities in a similar position to a bidder.
Bid Period:
for a Takeover Off-Market Bid, means the period that starts when the Bidder’s statement is given to the Target and ends:
one month later if no offers are made under the bid; or
(ii) at the end of the Offer Period;
(b) for a Takeover Market Bid, starts when the bid is announced by a Market Participant acting on behalf of the Bidder to the Market where Cash Market Products in the Bid Class have been granted Official Quotation and ends at the end of the Offer Period; and
(c) for a Scheme, starts when the announcement of intention to propose a Scheme is first received by the Market where Cash Market Products in the Bid Class have been granted Official Quotation until the date on which the Scheme is effected.
Block Trade has the meaning given by Rule 6.2.1.
Business Day means a day other than a Saturday, Sunday, New Year’s Day, Good Friday, Easter Monday, Christmas Day or Boxing Day.
Buyer means, in relation to a Derivatives Market Transaction, the Trading Participant whose purchase, bid or buy instruction, order or other Trading Message has resulted in the Derivatives Market Transaction being entered into, whether or not in connection with any Crossing, other Derivatives Market Transaction or any transaction in any Cash Market Product or Contract traded on another market, and includes the taker of an Options Market Contract.
Buy Order means an order to buy financial products.
Cash Market Product means an Equity Market Product, a Quoted Product, a Warrant admitted to Trading Status, an AQUA Product admitted to Trading Status or to the AQUA Quote Display Board, a CGS Depository Interest admitted to Trading Status and any other product that a Market operator authorises for trading on its Trading Platform as a Cash Market Product.
Cash Market Transaction means a transaction between Trading Participants for one or more Cash Market Products.
Cash Only Combination means a transaction consisting of two or more component Cash Market Transactions, in a specific ratio, in respect of which:
entry into each component Cash Market Transaction is contingent on entry into each of the other component Cash Market Transactions;
Category A Equity Market Product has the meaning given by paragraph 6.4.1(3)(a).
Category B Equity Market Product has the meaning given by paragraph 6.4.1(3)(b).
Category C Equity Market Product has the meaning given by paragraph 6.4.1(3)(c).
Category D Equity Market Product has the meaning given by paragraph 6.4.1(3)(d).
Central Order Book means a part of a Trading Platform which is a facility for submitting Trading Messages and entering into transactions in respect of any of the following:
Derivatives Market Contracts;
(b) Cash Market Products;
(c) Tailor-Made Combinations;
(d) Standard Combinations.
CGS Market means a financial market:
on or through which offers to acquire or dispose of CGS Depository Interests are made or accepted;
(b) the operator of which is licensed under subsection 795B(1) of the Corporations Act; and
(c) the operator of which has entered into contractual arrangements with the Australian Office of Financial Management to offer trading services in CGS Depository Interests.
CHESS Depositary Interest has the meaning given to the term “CDI” by Rule 2.13.1 of the operating rules of ASX Settlement Pty Limited (ACN 008 504 532).
Chi-X Australia means Chi-X Australia Pty Ltd (ACN 129 584 667).
Chi-X Market means the financial market operated by Chi-X Australia under Australian Market Licence (Chi-X Australia Pty Ltd) 2011.
Class means, in relation to Derivatives Market Contracts, all Contract Series with the same Underlying Index, Underlying Commodity, Underlying Financial Product or Underlying Instrument, as applicable.
Clearing Facility means, in relation to a transaction, the clearing and settlement facility, within the meaning of section 761A of the Corporations Act, through which the transaction has been or will be cleared.
Clearing Obligation means an obligation imposed on a Clearing Participant under the Clearing Rules.
Clearing Participant means a person admitted as a participant under the Clearing Rules.
Clearing Rules means:
in relation to a particular Clearing Facility, the operating rules, procedures, practices, directions, decisions and requirements of that Clearing Facility;
(b) in relation to a particular Clearing Participant, the rules of the Clearing Facility to which that Clearing Participant is subject.
Client Agreement means an agreement between a Trading Participant and its client, entered into under Rule 3.1.7, 3.1.8 or 3.1.9.
Client Order means an instruction, provided by a client to a Participant, to enter into a transaction or transactions.
Combination means a Cash Only Combination or a Derivatives Combination.
Company Announcements Office means the office of a Market operator that processes announcements regarding entities included in the official list of that Market for release to that Market.
Compensation Arrangements has the meaning given by section 880B of the Corporations Act.
Compliance Manager means a person who has responsibility for all or part of the compliance function in the business of a Market Participant in connection with the relevant Market.
Conditional Sale means a sale which is subject to fulfilment of conditions and made on a market declared by a Market operator to be a conditional market.
Confirmation has the meaning given by Rule 3.4A.1.
Continuing Professional Education Requirements means the requirements of Rule 2.4.21.
Continuously and in Real-Time, in relation to Pre-Trade Information or Post-Trade Information, means that the information is:
(a) made available through an electronic data feed and in a machine-readable format; and
(b) updated immediately as:
(i) new Orders are received and existing Orders are amended, matched, executed or cancelled; or
(ii) transactions are executed, reported or cancelled,
as applicable.
Continuous Trading Period means a session on a Trading Platform during which the following parameters apply:
(a) Bids and Offers may be entered, amended or cancelled in the Trading Platform;
(b) Bids and Offers are matched In Price/Time Priority on a continuous basis; and
(c) allowable trades may be reported.
Contract Series means a Futures Series or an Option Series.
Controlled Trust means a trust in relation to which an Employee, Immediate Family of an Employee or a company controlled by an Employee:
is a trustee;
(b) holds more than 50% of the whole beneficial interest; or
(c) controls the trust.
Controller means:
a person holding 20% or more of the total votes attached to voting shares of a Market Participant or a person who, together with Related Parties, holds 20% or more of such votes; or
(b) a person who has the power to control a Market Participant, whether that power is direct or indirect or is, or can be, exercised as a result of, by means of, in breach of, or by revocation of, trusts, relevant agreements and practices, or any of them, and whether or not they are enforceable,
but for the purposes of Part 6.4 does not include an entity if the entity, a holding company of the entity, or a subsidiary of the entity through which the entity has an interest in the Market Participant is an entity listed on the Market or with any other Australian market licensee, or a Recognised Stock Exchange whose principal place of business is located outside Australia.
Corporations Act means the Corporations Act 2001 (Cth).
Course of Sales Information has the meaning given by subrule 6.3.6A(2).
Cross or Crossing, means a transaction in respect of which a Trading Participant acts:
on behalf of both buying and selling clients to that transaction; or
(b) on behalf of a buying or selling client on one side of that transaction and as Principal on the other side.
Crossing System means any automated service provided by a Market Participant which matches or executes client Orders with Orders of:
the Market Participant;
(b) other clients of the Market Participant; or
(c) any other person whose Orders access the automated service;
otherwise than on an Order Book.
Crossing System Initial Report has the meaning given by Rule 5A.1.1.
Crossing System Monthly Report has the meaning given by Rule 5A.1.2.
Cross-Market Combination means a transaction consisting of one or more component Market transactions and one or more transactions in contracts or financial products traded on other markets, in a specific ratio, in respect of which:
entry into each component Market transaction and each component transaction in a financial product traded on another market is contingent on entry into each of the other Market transactions and transactions in financial products traded on any market;
CSPA Session State means the session on a Trading Platform, known as the Closing Single Price Auction, during which the following parameters apply:
an Auction is conducted on commencement of the session;
(b) no Bids and Offers may be entered, amended or cancelled in the Trading Platform;
(c) Qualifying Bids and Offers that have not been matched in the Auction will be carried through to the next session In Price/Time Priority; and
(d) no trades may be reported.
Dealing Rules means these Rules and the operating rules of a Market that govern the submission of Orders and the execution and reporting of Market transactions on the Trading Platform of the relevant Market.
Derivative/Cash Combination means a transaction consisting of one or more component Cash Market Transactions and one or more component Derivatives Market Transactions, in a specific ratio, in respect of which:
entry into each component Cash Market Transaction and each component Derivatives Market Transaction is contingent on entry into each other component Cash Market Transaction and Derivatives Market Transaction;
Derivatives Combination means a Derivatives Only Combination, a Derivative/Cash Combination or a Cross-Market Combination.
Derivatives Market Contract means a Futures Market Contract, an Options Market Contract and any other contract that a Market operator authorises for trading on its Trading Platform as a Derivatives Market Contract.
Derivatives Market Transaction means a transaction between Trading Participants for one or more Derivatives Market Contracts.
Derivatives Only Combination means a transaction which comprises at least two component Derivatives Market Transactions, in a specific ratio, in respect of which:
entry into each component Derivatives Market Transaction is contingent on entry into each of the other component Derivatives Market Transactions;
Disclosed in relation to an Order on an Order Book, means the Pre-Trade Information referred to in both items 4 (volume) and 6 (price) in the table in Rule 6.1.4 (in the case of Equity Market Products) or Rule 6.1.4A (in the case of CGS Depository Interests) is made available for the Order.
DTR means a representative of a Trading Participant who has been authorised by the Trading Participant to submit Trading Messages to a Trading Platform on behalf of the Trading Participant.
DTR identifier means a unique code, allocated by the Trading Participant under Rule 2.5.6, that identifies a DTR.
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.
Equity Market Product means:
a share in a body;
(b) a financial product referred to in subparagraph 764A(1)(b)(i) or subparagraph 764A(1)(ba)(i) of the Corporations Act;
(c) a right (whether existing or future and whether contingent or not) to acquire, by way of issue, the following under a rights issue:
a share covered by paragraph (a); or
(ii) a financial product covered by paragraph (b);
(d) a CHESS Depositary Interest; or
(e) a Transferable Custody Receipt,
admitted to quotation under a Market’s operating rules, but does not include a CGS Depository Interest.
Equity Securities means:
(a) shares in a body corporate or an unincorporated body other than redeemable preference shares which are Loan Securities in accordance with paragraph (c) of the definition of Loan Securities; or
(b) interests in a managed investment scheme, except those referred to in paragraph (d) of the definition of Loan Securities; or
(c) renounceable and non-renounceable rights to subscribe for Securities other than Loan Securities; or
(d) options over unissued Securities other than Loan Securities; or
(e) convertible notes; or
(f) in relation to a Market, any Securities which are determined to be Equity Securities by the operator of the Market on which those Securities are able to be traded in accordance with the operating rules of the Market,
but does not include Options Market Contracts or, in relation to a Market, Securities determined to be Loan Securities by the operator of the Market where those financial products are able to be traded in accordance with the operating rules of the Market.
ETF means a Managed Fund:
(a) the Equity Securities of which are:
listed on a Market;
able to be traded on a Market; or
admitted to Trading Status as an AQUA Product or to the AQUA Quote Display Board;
(b) with power and approval to continuously issue and have quoted on the relevant Market, Equity Securities in the Managed Fund;
(c) which provides for the issue of new Equity Securities in return for the subscriber transferring to the Managed Fund a portfolio of Securities, cash or a combination of Securities and cash; and
(d) for which the price of the Underlying Instrument is continuously disclosed or can be immediately ascertained.
ETF Security means a financial product issued by or provided pursuant to an ETF.
ETR Event means when:
(a) a Buy Order for an Equity Market Product or a CGS Depository Interest, for which the Bid price is both above the Reference Price and in the Extreme Trade Range for the Equity Market Product or CGS Depository Interest (as applicable); or
(b) a Sell Order for an Equity Market Product or a CGS Depository Interest, for which the Offer price is both below the Reference Price and in the Extreme Trade Range for the Equity Market Product or CGS Depository Interest (as applicable),
is received by a Market operator and is not prevented from entering the relevant Market by the controls the Market operator has in place to comply with Rule 8.1.3.
Note: Under Rule 8.2.2B, an ETR Event occurs on a Market in the circumstances described in this definition whether or not the Buy Order or Sell Order is executed, in whole or in part, on the Market.
Extreme Trade Range:
(a) in relation to Equity Market Products, has the meaning given by subrule 8.2.1(1); and
(b) in relation to CGS Depository Interests, has the meaning given by subrule 8.2.1(2).
Family Company means a corporation:
controlled by the person or the Immediate Family of the person; or
(b) in respect of which the person is beneficially entitled to more than 50% of the issued capital.
Family Trust means a trust in which:
the person or the Immediate Family of the person is the sole or majority beneficiary; or
(b) the person has the ability to remove the trustee of the trust and replace that trustee with his or her own nominee.
Foreign Quoted Shares, in relation to a Transferable Custody Receipt, means shares of a foreign company that is listed on the New York Stock Exchange, NASDAQ Global Market or NASDAQ Global Select Market, where the shares are in a class of shares that is able to be traded on at least one of those financial markets.
Funds Manager means an entity whose primary business is to invest moneys and manage assets and other investments allocated to it by clients for that purpose.
Futures Market Contract means a contract on the terms of a Futures Series.
Futures Option means an Options Market Contract in respect of which the Underlying Financial Product is a Futures Market Contract.
Futures Series means a set of contractual terms on which futures contracts are authorised for trading by a Market operator.
Hidden, in relation to an Order on an Order Book, means the Pre-Trade Information referred to in both items 4 (volume) and 6 (price) in the table in Rule 6.1.4 (in the case of Equity Market Products) or Rule 6.1.4A (in the case of CGS Depository Interests) is not made available for the Order.
Immediate Family in relation to a person, means that person’s spouse and any non-adult children.
Initial Margin means, in relation to an Open Contract, an amount of money determined by a Clearing Facility as the initial margin for the Open Contract, in accordance with the Clearing Rules.
In Price/Time Priority means, in respect of Bids and Offers, in accordance with the following order:
Bids entered into a Trading Platform are ranked from highest to lowest priced and Offers are ranked from lowest to highest priced;
(b) Bids entered into a Trading Platform are ranked above Bids entered later at the same price and Offers entered into a Trading Platform are ranked above Offers entered later at the same price; and
(c) an Order withdrawn from a Trading Platform loses its priority under (a) and (b) and, if re-entered, will be treated as a new Order.
Invalid, in relation to a price established by an Auction, or the price of a transaction, means:
(a) the price has resulted from an error;
(b) the price is materially different from the price of the last transaction in the same Equity Market Product or CGS Depository Interest (as applicable) on the same Order Book, and the difference in price is not, in the opinion of the relevant Market operator, readily attributable to an announcement that has been made to that Market or some other event; or
(c) the price has resulted from a transaction that is otherwise required to be cancelled or amended by the operator of the Market on which the transaction is executed.
IR Plus Market means the financial market operated by IR Plus Securities Exchange Limited (ACN 087 708 898) under Australian Market Licence (SIM Venture Securities Exchange Ltd) 2002.
Issuer means, in relation to a Cash Market Product, an Equity Market Product or other financial product able to be traded on a Market, the legal entity which issues the relevant product.
Large Portfolio Trade has the meaning given by Rule 6.2.2.
Large Principal Transaction has the meaning given by Rule 6.4.1.
LEPOs, or Low Exercise Price Options, means options to:
buy an agreed number of shares at a specified future date at an exercise price of one cent;
(b) notionally buy an Underlying Index at a specified future date at a strike price of one point.
Level One Accredited Derivatives Adviser means a person who has been accredited under Rule 2.4.7 and whose accreditation is current.
Level Two Accredited Derivatives Adviser means a person who has been accredited under Rule 2.4.8 and whose accreditation is current.
Loan Securities means:
debentures, stocks or bonds issued or proposed to be issued by a government; or
(b) debentures of a body corporate or an unincorporated body; or
(c) redeemable preference shares which have a fixed and certain date for redemption, other than shares having a participating entitlement to rights or options referred to in paragraphs (c) and (d) of the definition of Equity Securities; or
(d) interests in a managed investment scheme, relating to a financial or business undertaking or scheme, common enterprise or investment contract, the trustee or representative or responsible entity of which only invests in or acquires one or more of Loan Securities, mortgages and cash; or
(e) in relation to a Market, any Securities which are determined to be Loan Securities by the operator of the Market on which those Securities are able to be traded in accordance with the operating rules of the Market,
but does not include Options Market Contracts or, in relation to a Market, Securities determined to be Equity Securities by the operator of the Market where those financial products are able to be traded in accordance with the operating rules of the Market.
Managed Discretionary Account means a service with the following features:
a person makes client contributions;
(b) the client agrees with the Market Participant that the client’s portfolio assets will:
be managed by the Market Participant at its discretion, subject to any limitation that may be agreed, for purposes that include investment;
(ii) not be pooled with property that is not the client’s portfolio assets to enable an investment to be made or made on more favourable terms; and
(iii) be held by the client unless a beneficial interest but not a legal interest in them will be held by the client; and
(c) the client and the Market Participant intend that the Market Participant will use client contributions of the client to generate a financial return or other benefit from the Market Participant’s investment expertise.
Managed Fund means:
(a) a managed investment scheme which is a registered managed investment scheme pursuant to section 601EB of the Corporations Act or a managed investment scheme which ASIC has exempted from those registration requirements; or
(b) a foreign company which has the economic features of a managed investment scheme, namely:
investors contribute money or money’s worth to acquire rights to benefits produced by the collective investment;
contributions of investors are to be pooled, or used in a common enterprise, to produce financial benefits, or benefits consisting of rights or interests in property, for investors holding financial products in the collective investment; and
investors holding financial products issued in the collective investment do not have day to day control over the operation of the collective investment.
Market means any of the following:
the ASX Market;
the Chi-X Market;
the IR Plus Market;
the NSXA Market;
the SSX Market.
Market Maker means a Trading Participant registered by a Market operator as a market maker, which has an obligation to make a market in assigned Classes of Derivatives Market Contracts.
NGF has the meaning given by section 880B of the Corporations Act.
Non-Public Crossing System Information has the meaning given by subrule 5A.2.2(5).
Normal Trading Hours, in relation to a Participant and a transaction, means Trading Hours for all Markets:
(a) on which the financial products the subject of the transaction are quoted; and
(b) to which the Participant has access, either directly or indirectly through another Participant.
NSXA means National Stock Exchange of Australia Limited (ACN 000 902 063).
NSXA AOP Participant means a Participant of the NSXA Market that has either:
(a) given to ASIC an AOP Initial Certification in respect of the NSXA Market under Rule 5.6.6; or
(b)
use
d its systems for Automated Order Processing in relation to the NSXA Market.
NSXA Market means the financial market operated by NSXA under Australian Market Licence (National Stock Exchange of Australia Limited) 2002.
Offer means:
in relation to a Cash Market Product, a price and quantity of the Cash Market Products to be sold;
(b) in relation to a Derivatives Market Contract, an offer to enter into a Derivatives Market Contract in respect of the relevant Contract Series as Seller; and
(c) in relation to any other financial product, a price and quantity of the financial product to be sold.
Offer Period means:
in relation to a Takeover Bid, the period for which offers under the bid remain open; or
(b) in relation to a Scheme, the period from the date an announcement of intention to propose a Scheme is first received by the Market where the relevant financial products have been granted Official Quotation until the date on which the Scheme is effected.
Official Quotation, in relation to financial products, means admission to quotation by a Market operator under the listing rules of that Market.
On-Market, in relation to a transaction for the purpose of Chapter 6 of the Corporations Act, means a transaction by a Trading Participant for the acquisition of Cash Market Products which is:
effected during Trading Hours of a Market by matching of Trading Messages on a Trading Platform of that Market (other than a Crossing) in accordance with the operating rules of that Market; or
(b) a Crossing effected during Trading Hours of a Market (excluding a time during which an Auction is conducted on that Market) in accordance with the operating rules of that Market if:
the Crossing is arranged solely by the Trading Participant and is not prearranged between the principals to the transaction; and
(ii) each principal is indifferent as to the identity of the other,
where:
(iii) the expression “principal” includes the principal’s associates, advisers and advisers’ associates; and
(iv) the expression “adviser” does not include a person only providing services to the principal as a broker,
but does not include:
(c) Special Crossings; and
(d) Crossings (other than Special Crossings) that are effected outside of Trading Hours of the Market to which they are reported.
Open Contract means a contract, on the terms of a Contract Series, which is registered with a Clearing Facility under the Clearing Rules and any contract which replaces that contract through the transfer, adjustment or settlement to market of that contract under the Clearing Rules.
Open Interface means the electronic protocol and message structure used to provide a mechanism for Trading Participants to access a Trading Platform which enables a Trading Participant to submit Trading Messages to that Trading Platform.
Open Interface Device means a logical connection or session with the gateway using the Open Interface, and includes a session maintained by a Trader Workstation.
Open Session State means the session on a Trading Platform during which the following parameters apply:
an Auction is conducted on commencement of the session;
(b) Qualifying Bids and Offers that have not been matched in the Auction on transition to the session retain their ranking In Price/Time Priority;
(c) Bids and Offers may be entered, amended or cancelled in the Trading Platform;
(d) Bids and Offers are matched In Price/Time Priority on a continuous basis; and
(e) allowable trades may be reported.
Option Series means a set of contractual terms on which options are authorised by a Market operator for trading on its Market.
Options Market Contract means a contract on the terms of an Option Series.
Options Market Transaction means a Market transaction for one or more Options Market Contracts.
Order means, unless the contrary intention appears:
(a) in relation to Cash Market Products, an instruction to purchase or sell Cash Market Products, or an instruction to amend or cancel a prior instruction to purchase or sell Cash Market Products;
(b) in relation to Derivatives Market Contracts, an instruction to enter into a Derivatives Market Transaction, or an instruction to amend or cancel a prior instruction to enter into a Derivatives Market Transaction; and
(c) in relation to other financial products, an instruction to purchase or sell financial products, or an instruction to amend or cancel a prior instruction to purchase or sell financial products.
Note: This definition does not apply to Rules 5.4A.1, 5.4B.1 and 5.9A.1.
Order Book means an electronic list of Orders maintained by or on behalf of a Market operator, on which those Orders are matched with other Orders in the same list.
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.
Out of Hours Trade has the meaning given by Rule 6.2.6.
Overseas Broker means a broker whose principal place of business is located outside Australia.
Own Account has the meaning given by Rule 5.1.1.
Participant, in relation to a Market, means a person who is allowed to directly participate in the Market under the operating rules of the Market other than as a recognised affiliate.
Partly Disclosed, in relation to an Order on an Order Book, has the meaning given by Rule 6.1.5.
Partly Paid Security means a Quoted Product for which the holder may be liable to pay a call or instalment in accordance with the terms of issue and for which an amount remains unpaid, but does not include a Quoted Product issued by a no liability company.
Permitted Trade during the Post-Trading Hours Period has the meaning given by Rule 6.2.4.
Permitted Trade during the Pre-Trading Hours Period has the meaning given by Rule 6.2.5.
Post-Trade Information:
(a) in relation to transactions in Equity Market Products, has the meaning given by Rule 6.3.7; and
(b) in relation to transactions in CGS Depository Interests, has the meaning given by Rule 6.3.7A.
Post-Trading Administration Period means the session on a Trading Platform during which the following parameters apply:
(a) no Bids and Offers may be entered or amended;
(b) Bids and Offers remaining from the previous session may be cancelled;
(c) no Bids or Offers will be automatically matched;
(d) manual procedures for matching In Price/Time Priority apply; and
(e) allowable trades may be reported.
Post-Trading Hours Period means, in relation to an Equity Market Product or a CGS Depository Interest:
(a) where all Markets on which that Equity Market Product or CGS Depository Interest is quoted have the same Trading Hours, the 30-minute period following the end of Trading Hours; or
(b) where any Market on which that Equity Market Product or CGS Depository Interest is quoted has different Trading Hours to any other Market on which that Equity Market Product or CGS Depository Interest is quoted, the period from the earliest time on a Trading Day that Trading Hours end on any Market on which that Equity Market Product or CGS Depository Interest is quoted, until 30 minutes after the latest time on a Trading Day that Trading Hours end on any Market on which that Equity Market Product or CGS Depository Interest is quoted.
Pre-Commencement Market Integrity Rules means:
the ASIC Market Integrity Rules (APX Market) 2013;
(b) the ASIC Market Integrity Rules (ASX Market) 2010;
(c) the ASIC Market Integrity Rules (Chi-X Australia Market) 2011;
(d) the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011.
Prescribed Person means, in relation to a Market Participant:
an Employee, a director, or a partner, of the Market Participant;
(b) a Controller of the Market Participant or a related body corporate of that Controller;
(c) the Immediate Family of a person referred to in paragraphs (a) or (b);
(d) a Family Company and a Family Trust of a person referred to in paragraphs (a) to (c); and
(e) where a Market Participant or a person referred to in paragraphs (a) to (d) is a body corporate, anybody corporate or other entity controlled by that body corporate.
Pre-Trade Information:
(a) in relation to Orders in Equity Market Products, has the meaning given by Rule 6.1.4; and
(b) in relation to Orders in CGS Depository Interests, has the meaning given by Rule 6.1.4A.
Pre-Trade Transparent:
(a) in relation to an Order, means Pre-Trade Information is made available for the Order by a Market operator;
(b) in relation to a Bid or Offer, means the Bid or Offer is part of an Order for which the Pre-Trade Information referred to in item 6 (price) of the table in Rule 6.1.4 (in the case of Equity Market Products) or Rule 6.1.4A (in the case of CGS Depository Interests) is made available by a Market operator.
Pre-Trading Hours Period means:
(a) in the case of an Equity Market Product, the period on a Trading Day from three hours before the start of Trading Hours for ASX TradeMatch to 15 minutes before the start of Trading Hours for ASX TradeMatch; and
(b) in the case of a CGS Depository Interest, the period on a Trading Day from three hours before the start of Trading Hours for the Market of the Responsible Market Operator for CGS Depository Interests to 15 minutes before the start of Trading Hours for that Market.
Price Step means a difference in price of one Tick Size.
Principal, in the context of a Market Participant trading on its own behalf “as Principal”, includes a reference to the Market Participant trading on its own behalf or on behalf of any of the following persons:
(a) a partner of the Market Participant;
(b) a director or company secretary of the Market Participant;
(c) a Substantial Holder of the Market Participant, other than a Substantial Holder that beneficially owns Cash Market Products and those products appear as assets on the balance sheet or consolidated balance sheet of a life insurance company registered under the Life Insurance Act 1995 or the equivalent Act of a State, and are held for or on behalf of that life insurance company’s statutory funds;
(d) the Immediate Family, Family Company or Family Trust of a partner, director, company secretary or Substantial Holder of the Market Participant;
(e) a body corporate in which the interests of one or more of the partners singly or together constitute a controlling interest of the Market Participant;
(f) any related body corporate of the Market Participant,
and does not include where the Market Participant or a related body corporate of the Market Participant is trading as a trustee of a trust in which that trustee has a beneficial interest in the trust of less than 5%, and all of that interest was acquired in lieu of receipt of fees for administering the trust.
Principal Trader means a Market Participant with Trading Permission for one or more Products which limits it to trading on its own behalf.
Product means a Cash Market Product or a Derivatives Market Contract, as applicable.
Publicly Available Crossing System Information has the meaning given by subrule 5A.2.1(2).
Quoted Product means a financial product that has been granted Official Quotation.
Recognised Overseas Exchange has the meaning given by the operating rules of any Market.
Recognised Stock Exchange has the meaning given by the operating rules of any Market.
Reference Price means a price determined in accordance with Rule 8.2.2.
Regulatory Data has the meaning given by Rule 7.4.4.
Related Party:
in relation to a body corporate:
has the meaning given by section 228 of the Corporations Act; or
(ii) means a Substantial Holder of the body corporate;
(b) in relation to a trust, which is not a registered management investment scheme, means the management company, trustee and their related parties within the meaning of section 228 of the Corporations Act;
(c) in relation to a trust which is a registered managed investment scheme, means the responsible entity and a related party of the responsible entity under section 228 of the Corporations Act, as modified by section 601LA of the Corporations Act;
(d) in relation to a person, means:
his or her spouse, de facto spouse, parent, son, or daughter, or a spouse or de facto spouse of that person;
(ii) an entity over which one or more of the persons referred to in subparagraph (i) has control;
(iii) an entity that he or she controls, or its holding company or which is controlled by the holding company;
(iv) a person who acts, or proposes to act, in concert with anyone referred to above;
(v) a person who was a related party in the previous six months, or who would be a related party in the future, under the tests in section 228 of the Corporations Act (applied with any necessary adaptation).
Relative, in relation to a person, means the spouse, parent or remoter lineal ancestor, son or daughter or remoter issue, or brother or sister of that person.
Relevant Clearing Participant means, in relation to a Trading Participant:
where the Trading Participant is not itself a Clearing Participant and has a third-party clearing arrangement with only one Clearing Participant to clear all of its Market transactions in a class of Product, that Clearing Participant; and
(b) where the Trading Participant is itself a Clearing Participant and clears all of its Market transactions in a class of Products, itself; and
(c) where the Trading Participant has third-party clearing arrangements with more than one Clearing Participant, or is itself a Clearing Participant and has third-party clearing arrangements with other Clearing Participants to clear its Market transactions in a class of Product, the Clearing Participant which it has identified through the Open Interface Device in respect of the Market transaction.
Relevant Product:
(a) in Part 6.1 has the meaning given by subrule 6.1.1AA(2);
(b) in Part 6.2 has the meaning given by subrule 6.2.1AA(2);
(c) in Part 6.3 has the meaning given by subrule 6.3.1AA(2);
(d) in Part 6.4 has the meaning given by subrule 6.4.1AA(2);
(e) in Chapter 8 has the meaning given by subrule 8.1AA.1(2);
(f) in Part 9.1 has the meaning given by subrule 9.1.1AA(2); and
(g) in Part 9.2 has the meaning given by subrule 9.2.1AA(2).
Relevant Settlement Participant means, in relation to a Market Participant:
(a) where the Market Participant is not itself a Settlement Participant and has a third-party settlement arrangement with only one Settlement Agent to settle all of its Market transactions, that Settlement Agent; and
(b) where the Market Participant is itself a Settlement Participant and settles all of its Market transactions, itself; and
(c) where the Market Participant has third-party settlement arrangements with more than one Settlement Agent, or is itself a Settlement Participant and has third-party settlement arrangements with Settlement Agents to settle its Market transactions, the Settlement Participant which has been identified as the entity that is going to settle the Market transaction.
Renewal Date means the date notified by ASIC to the Market Participant under paragraph 2.4.9(2)(b), subrule 2.4.14(2) or paragraph 2.4.20(5)(b), as the date on which a person will cease to be an Accredited Adviser, unless their accreditation is renewed before that date under subrule 2.4.14(2) or 2.4.15(3).
Renewal Period means the period that commences 60 days prior to the Renewal Date and ends seven days prior to the Renewal Date.
Reporting Participant has the meaning given by Rule 6.3.2.
Representative has the meaning given by section 910A of the Corporations Act.
Responsible Market Operator means:
(a) in relation to a CGS Depository Interest, the Market operator determined in accordance with Rule 1.4.4; and
(b) in relation to an Equity Market Product, the Market operator determined in accordance with Rule 1.4.5.
Rules means these market integrity rules.
Scheme means:
a compromise or arrangement within the meaning of section 411 of the Corporations Act; and
(b) in respect of an Issuer incorporated or established outside Australia, any similar form of compromise or arrangement under the law of the jurisdiction of incorporation or establishment,
which has a similar result to a Takeover Off-Market Bid or Takeover Market Bid.
Security or security means:
a security within the meaning of section 761A of the Corporations Act; or
(b) a managed investment product.
Seller means, in relation to a Derivatives Market Transaction, the Trading Participant whose sell or offer instruction, order or other Trading Message has resulted in the Derivatives Market Transaction being entered into, whether or not in connection with any other Crossing, Derivatives Market Transaction or any transaction in any financial product and includes the writer of an Options Market Contract.
Sell Order means an Order to sell financial products.
Settlement Agent means, in relation to a Market Participant an entity approved in accordance with the operating rules of a Market to act as the Settlement Agent of the Market Participant to perform the settlement obligations of that Market Participant under the operating rules of the relevant Market.
Settlement Facility means, in relation to a Market transaction, the clearing and settlement facility, within the meaning of section 761A of the Corporations Act, through which the Market Transaction has been or will be settled.
Settlement Participant means a person admitted as a participant under the Settlement Rules.
Settlement Rules means the operating rules, procedures, practices, directions, decisions and requirements of a Settlement Facility.
Special Crossing:
in relation to an Equity Market Product able to be traded on more than one Market, means a Block Trade or a Large Portfolio Trade, entered into other than by matching of Orders on an Order Book of a Market; and
(b) in relation to a Product other than an Equity Market Product able to be traded on more than one Market, has the meaning given by the operating rules of the Market where the transaction occurs; and
(c) includes a transaction referred to as a negotiated transaction in the operating rules of a Market where:
a Market Participant acts on behalf of a selling client to that transaction or as Principal to that transaction;
(ii) another Market Participant acts on behalf of a buying client to that transaction or as Principal to that transaction; and
(iii) the transaction is effected other than by the matching of Orders entered into the Trading Platform of the relevant Market.
SSX means Sydney Stock Exchange Limited (ACN 080 399 220).
SSX Market means the financial market operated by SSX under Australian Market Licence (Sydney Stock Exchange Limited) 2004.
Standard Combination has the meaning given by the operating rules of a Market.
Structured Product means a Security or derivative:
which gives the holder financial exposure to the performance of one or more Underlying Instruments;
(b) the value of which is linked to the performance of those Underlying Instruments; and
(c) whereby investors do not have day to day control over the operation of the entity which issues or provides the Security or derivative.
Substantial Holder:
when used in the definition of “Principal” in this rule to refer to a Substantial Holder in a corporation, means a person who has or would have a substantial holding if Part 6C of the Corporations Act applied to that corporation; and
(b) for the purposes of any other Rule includes a reference to:
a person who has a relevant interest in not less than 5% of a class of non-voting shares of the relevant company or its holding company; and
(ii) each person who has a relevant interest in voting shares and non-voting shares of the relevant company or its holding company and whose aggregate holdings exceed 5% in number of the voting shares on issue of the relevant company or its holding company.
Tailor-Made Combination has the meaning given by the operating rules of a Market.
Takeover Bid means a Takeover Off-Market Bid or Takeover Market Bid.
Takeover Market Bid means a market bid within the meaning of the Corporations Act and, in respect of an Issuer incorporated or established outside Australia, any similar form of bid.
Takeover Offer means:
an offer under a Takeover Bid and, in respect of an Issuer incorporated or established outside Australia, any similar form of offer; and
(b) a Scheme.
Takeover Off-Market Bid means an off-market bid within the meaning of the Corporations Act and in respect of an Issuer incorporated or established outside Australia, any similar form of bid.
Target means:
in relation to a Takeover Off-Market Bid or Takeover Market Bid, a target within the meaning of the Corporations Act and, in respect of an Issuer incorporated or established outside Australia, the equivalent entity; and
(b) in relation to a Scheme, the entity or entities in a similar position to a target.
Terms of Issue means, in relation to Warrants, rights, conditions and obligations of the Warrant-Issuer and the holder of the Warrant.
Tick Size means in relation to an Equity Market Product or CGS Depository Interest, the minimum increment by which the price for an Equity Market Product or CGS Depository Interest may increase or decrease, in accordance with Rule 9.4.1 or Rule 5A.5.1, as applicable.
Tier 1 Equity Market Product has the meaning given by paragraph 6.2.1(3)(a).
Tier 2 Equity Market Product has the meaning given by paragraph 6.2.1(3)(b).
Tier 3 Equity Market Product has the meaning given by paragraph 6.2.1(3)(c).
Time Priority, in relation to an Order Book, means that Orders to buy or sell financial products in the same class for the same price are queued in the Order Book for matching and execution, with priority in the queue being given to the Order that was entered into the Order Book at the earlier time.
Total Consideration means:
(a) for a Buy Order, the purchase price paid by a client in respect of performance of a Client Order, plus Transaction Costs; or
(b) for a Sell Order, the sale price received by a client in respect of performance of a Client Order less Transaction Costs.
Trade Report, in Part 7.4, means:
(a) in relation to an Equity Market Product or CGS Depository Interest, a report of Post-Trade Information required to be made to a Market operator under Rule 6.3.1; and
(b) in relation to a financial product other than an Equity Market Product, a CGS Depository Interest or an Options Market Contract, a report of information in relation to a transaction entered into otherwise than by matching of Orders on an Order Book, required to be made to a Market operator under the operating rules of the relevant Market.
Trader Workstation means a personal computer with Trader Workstation Software installed.
Trader Workstation Software means the software product provided by a Market operator or a subsidiary for use by Trading Participants of the relevant Market which provides a Trader Workstation with the functionality necessary to use the Open Interface for trading on a Trading Platform of the relevant Market.
Trade with Price Improvement has the meaning given by subrule 6.2.3(1).
Trading Day, in relation to a Market, means a day on which Market transactions may be entered into by Trading Participants on the Trading Platform of that Market.
Trading Hours, in relation to a Market, means the times during which:
Orders may be entered, amended or cancelled on the Order Books of that Market; and
(b) Orders are matched and transactions are executed on a continuous basis on that Market,
and includes a time during which an Auction is conducted on the Market.
Trading Information:
(a) in relation to Equity Market Products, has the meaning given by subrule 6.3.6(2); and
(b) in relation to CGS Depository Interests, has the meaning given by subrule 6.3.6(3).
Trading Messages means those messages submitted into a Trading Platform relating to trading functions, such as orders, amendment or cancellation of orders and the reporting or cancellation of Market transactions on the Trading Platform.
Trading Participant means a Market Participant which has Trading Permission in respect of one or more financial products.
Trading Pause, means a period during which a Market operator must prevent Orders from being matched or executed on its Market, but during which Bids and Offers may be displayed, entered, amended and cancelled.
Trading Permission means the right to submit Trading Messages in a Trading Platform.
Trading Platform means a facility made available by a Market operator to Trading Participants of the relevant Market for the entry of Trading Messages, the matching of Orders, the advertisement of invitations to trade and the reporting of transactions.
Trading Reset, in relation to an Equity Market Product or a CGS Depository Interest, means each of a Trading Pause, Trading Suspension, and the end of Trading Hours for the Equity Market Product or CGS Depository Interest.
Trading Status means authorisation by a Market operator or a CGS Market operator for a financial product to be traded on the relevant Market or CGS Market.
Trading Suspension means a halt or suspension in trading on a Market pursuant to the exercise of a power by a Market operator under its operating rules during which Orders may not be matched or executed on the relevant Market, but does not include a halt or suspension caused by a technical problem (including a power outage) affecting the technical infrastructure used by the Market operator for the purposes of receiving Trading Messages, matching and executing Orders and reporting transactions.
Training Register means the list, published on ASIC’s website, of training courses and assessment services that meet ASIC’s training requirements under Regulatory Guide 146 Licensing: Training of financial product advisers (RG 146).
Transaction Costs means all costs paid by a client that are directly related to a particular transaction including, without limitation, any trade execution costs imposed by a Market, Crossing System or Participant, clearing and settlement costs and commissions paid to the Participant by a client.
Transferable Custody Receipts means units of beneficial ownership in Foreign Quoted Shares where the units:
(a) arise from a custodial and sub-custodial arrangement under which:
(i) a custodian holds, directly or indirectly, the Foreign Quoted Shares on behalf of, or in trust for, an AFSL holder that holds an AFSL that covers the provision of a custodial or depository service; and
(ii) the AFSL holder holds their equitable rights or interests in the Foreign Quoted Shares arising from the custodial arrangement mentioned in subparagraph (i) on behalf of, or in trust for, a person; and
(b) are issued without the involvement of the issuer of the Foreign Quoted Shares; and
(c) are able to be traded on the Chi-X Market.
Underlying Financial Product means, in relation to a Derivatives Market Contract, the financial product underlying that contract.
Underlying Index means, in relation to a Derivatives Market Contract, the index which underlies that contract.
Underlying Instrument means:
in relation to Option Series and Futures Series, the instrument which underlies that Option Series or Futures Series;
(b) in relation to Warrants, the financial product, index, foreign or Australian currency or commodity which underlies that Warrant; and
(c) in relation to AQUA Products and other financial products, the financial product, index, foreign or Australian currency, commodity or other point of reference for determining the value of the relevant product.
Underlying Market means, in relation to a Derivatives Market Contract, a market in the instruments, commodities, securities or other things which underlie the Derivatives Market Contract.
Under the Rules of, in relation to a Market, means executed on an Order Book or reported to a Market operator in accordance with these Rules and the operating rules (including written procedures made under the operating rules) of the relevant Market.
Unprofessional Conduct includes:
conduct which amounts to impropriety affecting professional character and which is indicative of a failure either to understand or to practise the precepts of honesty or fair dealing in relation to other Market Participants, clients or the public;
(b) unsatisfactory professional conduct, where the conduct involves a substantial or consistent failure to reach reasonable standards of competence and diligence; and
(c) conduct which is, or could reasonably be considered as likely to be, prejudicial to the interests of a Market operator or Market Participants,
by a Market Participant, or an Employee, whether in the conduct of the Market Participant’s business as a Market Participant or in the conduct of any other business, and need not involve a contravention of these Rules or any law.
UTC(AUS) means the output of the caesium atomic clock designated as UTC(AUS) by the National Measurement Institute division of the Commonwealth Department of Innovation, Industry, Science and Research.
Warrant has the meaning given by regulation 1.0.02 of the Corporations Regulations 2001.
Warrant-Issuer means an entity approved by a Market operator to issue Warrants.
Wholesale Client Agreement means the agreement between a Trading Participant and a client lodged with a Clearing Facility in accordance with paragraph 3.1.12(d) and Rule 3.1.13
Wholesale Client’s Instructions has the meaning given by subrule 3.8.1(4).
1.4.4 Responsible Market Operator for CGS Depository Interests
(1) In these Rules, Responsible Market Operator in relation to a CGS Depository Interest means:
(a) if the CGS Depository Interest is able to be traded only on one Market, the operator of that Market; or
(b) if the CGS Depository Interest is able to be traded on more than one Market, the Market operator determined by ASIC in writing.
(2) An instrument referred to in paragraph (1)(b) takes effect on the later of the date specified in the instrument or 60 business days after the instrument is registered.
Note: Instruments made under paragraph (1)(b) are available on the Federal Register of Legislation. The register may be accessed at www.legislation.gov.au.
1.4.5 Responsible Market Operator for Equity Market Products
(1) In these Rules, Responsible Market Operator in relation to an Equity Market Product means:
if the Equity Market Product is able to be traded only on one Market, the operator of that Market; or
if the Equity Market Product is able to be traded on more than one Market:
the Market operator determined by ASIC in writing; or
(ii) if there is no determination under subparagraph (i) that applies in relation to the Equity Market Product, the Market operator determined under subrules (3) and (4).
(2) An instrument referred to in paragraph (1)(b) takes effect on the later of the date specified in the instrument or 60 business days after the instrument is registered.
(3) Subject to paragraph (1)(b), the Responsible Market Operator in relation to an Equity Market Product that is able to be traded on more than one Market and is a quoted ED security is the operator of the listing market in relation to:
if the Equity Market Product is a quoted ED security because of subsection 111AE(1) of the Corporations Act—the Issuer of the Equity Market Product; and
if the Equity Market Product is a quoted ED security because of subsection 111AE(1A) of the Corporations Act—the undertaking to which the Equity Market Product relates.
(4) Subject to paragraph (1)(b), the Responsible Market Operator in relation to an Equity Market Product that is able to be traded on more than one Market and is not a quoted ED security is:
the Market operator (and if more than one, the first such Market operator) with whom:
if the Equity Market Product is an interest in a managed investment scheme—the operator of the scheme;
(ii) otherwise—the Issuer of the Equity Market Product;
has an agreement in force under which the Issuer or operator of the scheme agrees to be bound by operating rules of the Market that deal with admission of that class of financial product to quotation; or
otherwise, the operator of the first of those Markets on which the Equity Market Product is admitted to quotation.
Note: Instruments made under paragraph (1)(b) are available on the Federal Register of Legislation. The register may be accessed at www.legislation.gov.au.
Part 1.5 Participants of multiple Markets
1.5.1 Participants may rely on notifications
Where these Rules require a Market Participant or a CGS Market Participant to give to ASIC any document (however described), the Participant may give to ASIC the same document in relation to more than one Market and, or CGS Market if:
(a) the Participant has notified ASIC in writing that it intends to comply with these Rules by relying on that document, or on documents of that kind, in relation to each Market to which the document applies; and
(b) the document contains all of the information that would be required to be in the document if it were given separately in relation to each Market and, or CGS Market.
Part 1.6 Transitional
1.6.1 Status of notifications and certifications given by a Market Participant under the Pre-Commencement Market Integrity Rules
(1) This Rule applies if:
(a) a Market Participant or CGS Market Participant gave ASIC a written notification or certification under the Pre-Commencement Market Integrity Rules; and
(b) the notification or certification has not been withdrawn or otherwise ceased to have effect; and
(c) the power or obligation in the Pre-Commencement Market Integrity Rules to give the notification or certification is incorporated under a corresponding provision in these Rules.
(1A) For the purposes of this Rule, a provision (old provision) of the Pre-Commencement Market Integrity Rules corresponds to a provision (new provision) of these Rules (and vice versa) if the old provision and the new provision are substantially the same.
(1B) For the purposes of subrule (1A), differences of all or any of the following kinds are not sufficient to mean that two provisions are not substantially the same:
(a) differences in the numbering of the provisions;
(b) differences of a minor technical nature (for example, differences in punctuation, or differences that are attributable to the correction of incorrect cross-references);
(c) the fact that one of the provisions refers to a corresponding previous law and the other does not;
(d) other differences that are attributable to the fact that these Rules apply to more than one Market.
(2) The notification or certification:
(a) is taken to have been given to ASIC by the Market Participant under the corresponding provision in these Rules; and
(b) will continue in its existing form, and continue to have the same effect under these Rules, as when given under the Pre-Commencement Market Integrity Rules.