ASIC today released a consultation paper setting out proposed changes to ASIC market integrity rules and various instruments to enable Chi-X Australia Pty Ltd (Chi-X) to commence the quotation and trading of warrants and exchange traded funds (ETFs) on its market.
Consultation Paper 235 Proposed amendments to ASIC market integrity rules and instruments for the Chi-X investment product market (CP 235) sets out the proposed changes and ASIC's rationale for proposing them.
The proposals in CP 235 aim to apply a consistent regulatory framework for the quotation and trading of warrants and exchange traded funds (ETFs), in particular, for market participants and investors who may seek to trade these products on the ASX and/or Chi-X markets. ASIC's objective is to maintain existing levels of market integrity and investor protection for these products irrespective of the market on which they are traded.
Other matters
CP 235 also proposes some minor changes to:
- ASIC market integrity rules for the ASX market in response to recent amendments to the ASX Operating Rules, and
- individual relief instruments for ASX-quoted ETFs and managed fund products.
ASIC encourages feedback from market participants and other parties that may be affected by the proposals.
Submissions on CP 235 are due by 9 September 2015.
Background
ASIC assumed responsibility for market supervision in August 2010. Chi-X commenced operating its financial market in October 2011.
The ASIC market integrity rules for ASX and Chi-X deal with important investor protection and market integrity issues which ASIC considers are important to apply across the Australian market. This approach was also intended to reduce regulatory complexity for participants trading on both markets, and to ensure a level playing field for the ASX and Chi-X.