AUSTRALIA: ASIC Consults on Consolidating ASIC Market Integrity Rules

Tuesday January 24 2017

On 24th January 2017, the Australian Securities & Investments Commission released a consultation paper proposing to consolidate and clarify Australia`s market integrity rules.

There are currently 14 market integrity rule books that set out obligations and prohibitions applying to activities and conduct on eight licensed financial markets. Collectively, these rule books amount to more than 1,300 pages of regulation, and a further five regulatory guides set out guidance on ASIC`s approach to regulating these markets.

In preparation for a detailed review of the market integrity rules, ASIC proposes to consolidate 13 of the 14 market integrity rule books into four, covering the:

• ASX, Chi-X, IR Plus, NSXA, and SSX securities markets, and competition between securities markets
• ASX 24 and FEX futures markets, and competition between futures markets
• capital requirements for ASX, Chi-X, SSX and NSXA securities markets, and
• capital requirements for ASX 24 and FEX futures markets.

In consolidating the rules, ASIC also proposes to clarify existing obligations for:

• management requirements and responsible executives
• dealing `as principal`
• block trades and large portfolio trades
• disclosures to wholesale clients about derivatives market contracts, and
• record-keeping requirements for market operators.

Submissions to CP 277 are due by 7th March 2017.

Click here for CP 277 and draft rules.

Click on the link above for further details.