Part 2Market Participants and Representatives

Chapter 2: Market Participants and Representatives

Part 2.1 Management requirements

2.1.1 Management structure

(1) A Market Participant must, in relation to its conduct, and that part of its business that it conducts, on or in relation to a Market, wherever the conduct occurs or the business is located and regardless of the number of offices operated or intended to be operated by the Market Participant, have appropriate management structures in place to ensure that:

it has operations and processes in place that are reasonably designed and implemented, and that function so as to achieve compliance by the Market Participant with these Rules and the operating rules of the relevant Market;

(b) the design, implementation, functioning and review of those operations and processes are subject to the supervision of one or more person with appropriate supervisory skills knowledge and experience; and
(c) its supervisory staff has sufficient seniority and authority within the Market Participant to exert control, leadership, influence and supervision over those operations and processes.

(2) A Market Participant must keep accurate records of its management structure and its allocation of responsibilities among its supervisory staff.

2.1.2 Notification of management structure

An entity that becomes a Market Participant on or after the date these Rules commence under Rule 1.1.3 must give ASIC a document that sets out its management structure and its allocation of its responsibilities among its supervisory staff in relation to each relevant Market, within 10 Business Days of becoming a Market Participant of the relevant Market.

2.1.3 Supervisory procedures

A Market Participant must have appropriate supervisory policies and procedures to ensure compliance by the Market Participant and each person involved in its business as a Market Participant with these Rules, the operating rules of each relevant Market and the Corporations Act.

2.1.4 Persons involved in the business—Good fame and character requirement

(1) A Market Participant must ensure that any Employee or other person who is or will be involved in the business of the Market Participant in connection with that Market and, in the case of a body corporate, each director or Controller, is of good fame and character and high business integrity having regard to subrule (2).

(2) In assessing whether a person is of good fame and character and high business integrity for the purpose of subrule (1):

a person will not be of good fame and character if he or she is disqualified from managing a corporation under the Corporations Act or under the law of another country, or is an insolvent under administration or its equivalent in another country; and

(b) a person may not be of good fame and character or high business integrity if the person has been:

  convicted of any offence;

  (ii) disciplined by or adversely mentioned in a report made by or at the request of, any government or governmental authority or agency;
  (iii) adversely mentioned in a report made by, or at the request of, a Market operator, a Clearing Facility, a Settlement Facility or any other exchange, market operator or clearing and settlement facility; or
  (iv) disciplined by a Market operator, a Clearing Facility, a Settlement Facility or any other exchange, market operator or clearing and settlement facility.