ASIC Market Integrity Rules (Securities Markets) 2017 (Cth)

ASIC Market Integrity Rules (Securities Markets) 2017 made under subsection 798G of the Corporations Act 2001

Compilation No. 6 Compilation date: 15 October 2024 Includes amendments up to: ASIC Market Integrity Rules (Amendment) Instrument 2024/774 (F2024L01303)

Contents

Chapter 1: Introduction.........................................4 Part 1.1..Preliminary ...........................................4 Part 1.2..Waiver ................................................... 7 Part 1.3..Notice, notification and service of documents...................8 Part 1.4..Interpretation..........................................9 Part 1.5..Participants of multiple Markets............................36 Part 1.6..Transitional............................................ 36 Chapter 2: Market Participants and Representatives..................38 Part 2.1..Management requirements...............................38 Part 2.2..Insurance and information requirements.....................39 Part 2.3..Supervisory staff......................................41 Part 2.5..Designated Trading Representatives (DTRs)..................41 Part 2.6..Foreign Participants....................................42 Chapter 3: Client relationships...................................44 Part 3.1..Clients trading in products for first time......................44 Part 3.2..Trading as Principal....................................51 Part 3.3..Client instructions.....................................52 Part 3.4..Reporting to Clients....................................53 Part 3.4A.Multiple Markets—Single trade confirmations..................55 Part 3.5..Client Money and Property...............................55 Part 3.6..Prohibition of advice to Client.............................60 Part 3.7..Dealing in Cash Market Products..........................61 Part 3.8..Best execution obligation................................62 Part 3.9..Policies and procedures.................................64 Part 3.10.Disclosure to clients of best execution obligation...............65 Part 3.11.Evidencing execution performance.........................66 Chapter 4: Records ..............................................68 Part 4.1..Trading records.......................................68 Part 4.2..Records—General.....................................73 Part 4.3..Access to records.....................................74 Chapter 5: Trading ................................................76 Part 5.1AA Transactions to be under the operating rules of a Market operator...76 Part 5.1..Client order priority.....................................76 Part 5.4..Transactions by connected persons (including persons connected with other Market Participants) 79 Part 5.4A.Managing confidential Order information.....................80 Part 5.4B.Order incentives......................................81 Part 5.5..Participant's trading infrastructure..........................82 Part 5.6..Automated Order Processing—Filters, conduct, and infrastructure..83 Part 5.7..Manipulative trading....................................88 Part 5.9..Fair and orderly markets.................................89 Part 5.9A.Trading Suspensions...................................90 Part 5.10.Dealing in Cash Market Products..........................90 Part 5.11.Suspicious activity reporting..............................92 Part 5.12.Market Bid—Announcements by Market Participant.............93 Part 5.13.Acquisition of Cash Market Products during the Bid Period........94 Part 5.14.Market Participant acting for Bidder or Issuer..................95 Chapter 5A: Crossing Systems..................................96 Part 5A.1.Reporting requirements for Crossing Systems.................96 Part 5A.2.Disclosure requirements for Crossing Systems................97 Part 5A.3.Fair treatment, fairness and priority in dealing and opting out by users of Crossing Systems ...... 101 Part 5A.4.Crossing Systems—Monitoring and suspicious activity reporting...102 Part 5A.5.Crossing System Tick Sizes and system controls..............104 Chapter 6: Pre- and Post-Trade Transparency......................106 Part 6.1..Orders must be Pre-Trade Transparent.....................106 Part 6.2..Pre-Trade Information—Exceptions........................109 Part 6.3..Transactions must be post-trade transparent.................113 Part 6.4..Delayed reporting.....................................123 Chapter 7: Regulatory Data and data feeds........................126 Part 7.1..Data feeds .........................................126 Part 7.2..Information .........................................127 Part 7.3..Material changes to operating rule procedures................128 Part 7.4..Requirement to record and provide Regulatory Data............128 Chapter 8: Extreme price movements.............................132 Part 8.1AA Application .........................................132 Part 8.1..Order entry controls for Anomalous Orders..................132 Part 8.2..Extreme Trade Range.................................134 Part 8.3..Transparent cancellation policies.........................138 Chapter 8A: Market operators—Critical Business Services, Information Security and Business Continuity Plans 140 Part 8A.1.Application and Definitions..............................140 Part 8A.2.Trading controls......................................141 Part 8A.3.Critical Business Services...............................141 Part 8A.4.Information security...................................145 Part 8A.5.Business Continuity Plans..............................145 Part 8A.6.Governance.........................................148 Chapter 8B: Market Participants—Critical Business Services, Information Security and Business Continuity Plans 149 Part 8B.1.Application and Definitions..............................149 Part 8B.2.Critical Business Services...............................150 Part 8B.3.Information security...................................153 Part 8B.4.Business Continuity Plans..............................154 Part 8B.5.Governance.........................................156 Chapter 9: Market operators—Other obligations....................157 Part 9.1..Trading Suspensions..................................157 Part 9.2..Information Sharing...................................158 Part 9.3..Synchronised clocks...................................160 Part 9.4..Tick Sizes .............................................161 Part 9.5..Record keeping......................................162 Part 9.6..Supervision and risk management.........................163 Endnotes .............................................................165 Endnote 1—About the endnotes..................................165 Endnote 2—Abbreviation key....................................166 Endnote 3—Legislation history...................................167 Endnote 4—Amendment history..................................169