ASIC has made new market integrity rules for the Australian Securities Exchange Limited derivatives market (ASX 24).
The rules cover risk management, supervisory policies and procedures, and foreign participants. New ASX 24 market participants will need to comply with the rules immediately. For existing participants, there will be a three month transition period. ASIC will issue regulatory guidance during this time.
There are also rules that cover disclosure about clearing arrangements and obligations on participants to give priority to the client’s instructions where there is a conflict between the client’s interests and the participant’s interests. These will need to be complied with immediately.
‘Market integrity goes to the heart of investor confidence in fair and efficient markets and in supervising participants ASIC will take action where trading activities compromise this,’ ASIC Commissioner John Price said.
The rules follow consultation in May 2011 and November 2012 (refer: 11-97AD and 12-281MR).
Download
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ASIC Market Integrity Rules (ASX 24 Market) Amendment 2013 (No. 1)
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Report 343 Response to submissions on CP 195 Proposed amendments to ASIC market integrity rules: ASX 24 and FEX markets (REP 343)
Background
ASIC is responsible for supervising domestic licensed financial markets in Australia. As part of its supervisory responsibilities, ASIC makes market integrity rules and monitors market participants’ compliance with the rules.