Source: https://www.legislation.gov.au/Details/F2015C00486
Timestamp: 2018-07-20 14:41:48
Document Index: 219738156

Matched Legal Cases: ['art 2', 'art 2', 'art 2', 'art 2', 'art 2', 'art 3', 'art 3', 'art 3', 'art 3', 'art 3', 'art 3', 'art 4', 'art 4', 'art 4', 'art 5', 'art 5', 'art 5', 'art 5', 'art 5', 'art 5', 'art 5', 'art 5', 'art 6', 'art 6', 'art 6', 'art 7', 'art 7', 'art 5', 'art 3', 'art 5', 'art 5', 'art 5', 'art 5', 'art 6']

Details: F2015C00486
- F2015C00486
Rules/Other as amended, taking into account amendments up to ASIC Market Integrity Rules (APX Market) Amendment 2015 (No. 1)
ASIC Market Integrity Rules (APX Market) Amendment 2015 (No. 1) - F2015L00624
F2015C00486
This compilation was prepared on 4 June 2015 taking into account amendments up to and including ASIC Market Integrity Rules (APX Market) Amendment 2015 (No. 1), which commenced on 2 May 2015. See the Notes at the end of these Rules.
Chapter 2: Participants and Representatives. 19
Part 2.1 Management requirements. 19
Part 2.2 Insurance and information requirements. 21
Part 2.3 Responsible Executives. 23
Part 2.5 Designated Trading Representatives (DTRs) 25
Part 2.6 Foreign Participants. 27
Chapter 3: Client relationships. 29
Part 3.1 Clients trading in products for first time. 29
Part 3.2 Trading as Principal 32
Part 3.3 Client instructions. 34
Part 3.4 Reporting to Clients. 35
Part 3.5 Client Money and Property. 37
Part 3.6 Prohibition of advice to Client 39
Chapter 4: Records. 40
Part 4.1 Trading records. 40
Part 4.2 Records—General 45
Part 4.3 Access to records. 46
Chapter 5: Trading. 48
Part 5.1 Client order priority. 48
Part 5.4 Transactions by connected persons (including persons connected with other Market Participants) 51
Part 5.5 Participant’s trading infrastructure. 52
Part 5.6 Automated Order Processing—Filters, conduct, and infrastructure 53
Part 5.7 Manipulative trading. 59
Part 5.9 Fair and orderly markets. 60
Part 5.10 Dealing in APX Products. 61
Part 5.11 Suspicious activity reporting. 63
Chapter 6: Takeovers. 65
Part 6.1 Market Bid—Announcements by Market Participant 65
Part 6.2 Acquisition of APX Products during the Bid Period. 66
Part 6.3 Market Participant acting for Bidder or Issuer 66
Chapter 7: Rules applying to Market Operators. 68
Part 7.1 Data feeds. 68
Part 7.2 Information. 69
Notes to ASIC Market Integrity Rules (APX Market) 2013. 70
This instrument is ASIC Market Integrity Rules (APX Market) 2013.
1.1.2A Revocation
The ASIC Market Integrity Rules (APX Market) 2010 are revoked.
This instrument commences the day after the instrument is registered under the Legislative Instruments Act 2003 (Cwlth).
Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003 (Cwlth), section 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.
(a) the activities or conduct of the APX Market;
(b) the activities or conduct of persons in relation to the APX Market;
(c) the activities or conduct of persons in relation to Financial Products traded on the APX Market.
“APX” means Asia Pacific Exchange Limited (ACN 080 399 220).
“APX Announcements Office” means the office of APX that processes announcements regarding Listed Entities for release to the APX Market.
“APX Market” means the market operated by the Market Operator under Australian Market Licence (Asia Pacific Exchange Limited) 2004.
“APX Market Transaction” means a transaction between Market Participants for one or more APX Products.
“APX Product” means:
(a) a security as defined in section 761A of the Corporations Act; and
(b) a managed investment product as defined in section 761A of the Corporations Act,
admitted to quotation on the APX Market.
“ASIC Act” means the Australian Securities and Investments Commission Act 2001 (Cwlth) as amended from time to time.
“Bid” means, in relation to an APX Product, a price and quantity of the APX Product to be purchased.
(b) for a Market Bid, starts when the bid is announced to the APX Market by the person acting on behalf of the Bidder and ends at the end of the Offer Period; and
(c) for a Scheme, starts when the announcement of intention to propose a Scheme is first received by the APX Market until the date on which the Scheme is effected.
“Chi-X Australia Market Integrity Rules” means the ASIC Market Integrity Rules (Chi-X Australia Market) 2011, as amended from time to time.
“Chi-X Australia Participant” means a participant in the Chi-X Market admitted under the Operating Rules of the Chi-X Market.
“Chi-X Market” means the market operated by Chi-X Australia under Australian Market Licence (Chi-X Australia Pty Ltd) 2011.
“Clearing Facility” means, in relation to a Market Transaction, the clearing and settlement facility, if any, within the meaning of section 761A of the Corporations Act, through which the Market Transaction has been or will be cleared.
“Compliance Education” means education or professional development directly related to compliance obligations, policies, procedures and ethics with specific relevance to the obligations of the Market Participant and the Responsible Executive under these Rules, the Market Operating Rules, and, where applicable, the Clearing Rules and the Settlement Rules.
but for the purposes of Part 5.2 does not include an entity if the entity, a holding company of the entity, or a subsidiary of the entity through which the entity has an interest in the Market Participant is an entity listed on the Market or with any other Australian market licensee or a Recognised Overseas Exchange.
“Corporations Act” means the Corporations Act 2001 (Cwlth).
“Derivatives Market Contract” means a Futures Market Contract, an Options Market Contract and any other contract that the operator of a licensed financial market authorises for trading on that market as a Derivatives Market Contract.
(a) which is listed on the APX Market;
(b) with power and approval to continuously issue and have quoted on the APX Market, Equity Securities in the Managed Fund;
(f) any Securities which are determined by the operator of the APX Market to be Equity Securities,
but does not include Options Market Contracts, or Securities determined to be Loan Securities by the operator of the APX Market.
“Futures Series” means a set of contractual terms on which futures contracts are authorised for trading by the operator of a licensed financial market.
“Issuer” means, in relation to an APX Product, the legal entity which issues the APX Product.
(e) any Securities which are determined by the operator of the APX Market to be Loan Securities,
but does not include Options Market Contracts, or Securities determined to be Equity Securities by the operator of the APX Market.
“Market Listing Rules” means the Listing Rules of the APX Market.
“Market Operating Rules” means the Operating Rules of the APX Market, other than the Market Listing Rules.
“Market Operator” means APX.
“Market Participant” means a participant in the APX Market admitted under the Market Operating Rules.
“Market Transaction” means a transaction for one or more APX Products, entered into on a Trading Platform or reported to the Market Operator under the Market Operating Rules.
“Offer” means, in relation to an APX Product, a price and quantity of the APX Products to be sold.
(b) in relation to a Scheme, the period from the date an announcement of intention to propose a Scheme is first received by the APX Market until the date on which the Scheme is effected.
“Official List” means the official list of the APX Market.
“Official Quotation”, in relation to Financial Products, means admitted to quotation by APX under the Market Listing Rules.
“On-Market”, in relation to a transaction for the purpose of Chapter 6 of the Corporations Act, means a transaction by a Market Participant for the acquisition of APX Products which is:
(a) effected during Trading Hours by matching of Trading Messages on a Trading Platform (other than a Crossing) in accordance with the Market Operating Rules; or
(b) a Crossing effected during Trading Hours in accordance with the Market Operating Rules if:
(d) Crossings (other than Special Crossings) that are effected outside of Trading Hours.
“Option Series” means a set of contractual terms on which options are authorised for trading by the operator of a licensed financial market on that market.
“Order” means, in relation to APX Products, an instruction to purchase or sell APX Products, or an instruction to amend or cancel a prior instruction to purchase or sell APX Products.
“Order Book” means an electronic list of Orders, maintained by or on behalf of the Market Operator, on which those Orders are matched with other Orders in the same list.
“Partly Paid Security” means an APX Product for which the holder may be liable to pay a call or instalment in accordance with the terms of issue and for which an amount remains unpaid, but does not include an APX Product issued by a no liability company.
“Recognised Overseas Exchange” has the meaning given by the Operating Rules of APX.
“Relevant Settlement Participant” means, in relation to a Market Participant:
(a) where the Market Participant is not itself a Settlement Participant and has a third party settlement arrangement with only one Settlement Agent to settle all of its Market Transactions, that Settlement Agent; and
(b) where the Market Participant is itself a Settlement Participant and settles all of its Market Transactions, itself; and
(c) where the Market Participant has third party settlement arrangements with more than one Settlement Agent, or is itself a Settlement Participant and has third party settlement arrangements with Settlement Agents to settle its Market Transactions, the Settlement Participant which has been identified as the entity that is going to settle the Market Transaction.
“Settlement Agent” means an entity approved in accordance with the Market Operating Rules to act as the Settlement Agent of a Market Participant to perform the settlement obligations of that Market Participant under the Market Operating Rules.
“Special Crossing” means a transaction (referred to in the Market Operating Rules as a “negotiated transaction”) in APX Products, where:
(a) a Market Participant acts on behalf of a selling client to that transaction or as Principal to that transaction;
(b) another Market Participant acts on behalf of a buying client to that transaction or as Principal to that transaction; and
(c) the transaction is effected other than by the matching of Orders entered into the Trading Platform.
“Trading Hours”, in relation to the APX Market, means the times during which:
(a) Orders may be entered, amended or cancelled on the Order Books of the APX Market; and
(b) Orders are matched and transactions are executed on a continuous basis on the APX Market,
and includes a time during which an auction is conducted on the APX Market.
(1) A Market Participant must, in relation to its conduct, and that part of its business that it conducts, on or in relation to the APX 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:
(a) the Market Participant is also an ASX Participant or a Chi-X Australia Participant;
(b) the Market Participant has given ASIC a document or set of documents that complies with either ASX Market Integrity Rule 2.1.2 or Chi-X Australia Market Integrity Rule 2.1.2;
(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 the APX 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).
(a) a Market Participant commences legal proceedings against, or has legal proceedings commenced against it by, another Market Participant, a Clearing Participant, a Settlement Participant, a regulatory authority or a client in connection with their role as a Market Participant; and
(b) as at the date the Market Participant appoints the person, the person satisfies the requirements of being a Responsible Executive under the ASX Market Integrity Rules and/or the Chi-X Australia Market Integrity Rules; or
(3) For the purposes of subparagraph (2)(c)(i), ASIC may approve, in writing, one or more examinations that, in the opinion of ASIC, assess knowledge and competency in the application of the provisions of these Rules, the Market Operating Rules and the Corporations Act that govern the operation of the APX Market and are relevant to the role performed by Responsible Executives.
(a) maintains the currency of his or her knowledge of these Rules, the Market Operating Rules and the Corporations Act related to the business that the Market Participant conducts in the APX Market;
(2) The Market Participant must retain copies of the representation referred to at paragraph(1)(d), and of the documentation concerning the Market Participant’s compliance with these Rules and the Market Operating Rules on which the representation is based, for 7 years from the date the representation is provided to the Market Participant.
(2) A notification provided under subrule (1) prior to 1 August 2013 need only relate to the period from the Commencement Date to 30 June 2013.
(a) each of its DTRs is at all times a Representative of the Market Participant authorised to deal in the APX Products in respect of which the DTR submits orders on behalf of the Market Participant either:
(b) each of its DTRs is suitably qualified and experienced to deal in the APX Products referred to in paragraph (a), by submitting orders on behalf of the Market Participant;
(c) the Foreign Market Participant covenants to comply with any order of an Australian court in respect of any matter relating to the activities or conduct of the Foreign Market Participant in relation to the APX Market or in relation to Financial Products traded on the APX Market, including but not limited to any matter relating to the Foreign Market Participant’s obligations under:
(iii) the Corporations (Fees) Act 2001 (Cwlth);
Before accepting an Order from a person to enter into a Market Transaction, if the Market Participant does not have Trading Permission to execute that Market Transaction, the Market Participant must give the person a document which clearly discloses the execution arrangements in place for that Market Transaction including, without limitation:
(1A) This Rule only applies where there is a Clearing Facility through which Market Transactions are cleared.
(1) Before accepting an order from a person (the “Client”) to enter into a Market Transaction if the Market Participant:
(a) the name, principal telephone number and principal business address of the Clearing Participant which clears the Market Transactions of the Market Participant; and
(ii) the Client owes obligations to the Clearing Participant in relation to the clearing and settlement of Market Transactions;
(A) the Client fails to pay the amounts due in respect of Market Transactions; or
(B) the Client fails to fulfil its settlement obligations in respect of Market Transactions,
3.1.4A Information to be given to a client: Settlement arrangements
(a) is not a Settlement Participant, who is permitted under the Settlement Rules to settle the Market Transaction; or
(b) is a Settlement Participant who is permitted under the Settlement Rules to settle that Market Transaction, but has an arrangement with a Settlement Agent to settle that Market Transaction, and such transaction is settled under the arrangement,
the Market Participant must give the Client a document which clearly discloses the settlement arrangements in place for that Market Transaction, including, without limitation, any information required by subrule (2).
(a) the name, principal telephone number and principal business address of the Settlement Agent which settles the Market Transactions of the Market Participant; and
(b) if, under the settlement arrangements:
(i) notwithstanding that the Market Transaction may have been entered into on the Client’s behalf, the Market Participant carries the Settlement Obligations for all Market Transactions of the Market Participant, including those of the Client, and must settle as principal with the relevant counter-party; or
(ii) the Client owes obligations to the Market Participant in relation to the settlement of Market Transactions;
(iii) the Market Participant has rights against the Client in the event that:
This Part 3.2 applies where a Market Participant enters into a Market Transaction with a Client as Principal, except where the Client is a Market Participant or a participant or member of a Recognised Overseas Exchange.
(2) Without limitation, in paragraph (1)(b), a reference to dealing on behalf of a Substantial Holder means that any APX Product the subject of the Market Transaction is, or will be on the execution of the transaction, beneficially owned by the Substantial Holders.
(3) For the purposes of subrule (2), APX Products beneficially owned by a Substantial Holder include APX Products that appear or would appear as assets on the balance sheet or consolidated balance sheet of that Substantial Holder’s assets and liabilities, except where the APX Products concerned appear or would appear as assets on the balance sheet or consolidated balance sheet of a life insurance company registered under the Life Insurance Act 1995 (Cwlth) or the equivalent Act of a State, and are held for or on behalf of that life insurance company’s statutory funds.
(i) the directions, decisions and requirements of the Market Operator, these Rules, the Market Operating Rules and where relevant, the Clearing Rules and the Settlement Rules;
(ii) the customs and usages of the APX Market; and
(c) if the Market Transaction is to be cleared or settled by another party which is a Clearing Participant or Settlement Agent, the confirmation must include the name of the Market Participant which executed the trade and, where relevant, the Clearing Participant which clears it and/or the Settlement Agent who settles it;
(d) the confirmation must state the time by which all documents and information which the Market Participant, Clearing Participant and/or, Settlement Agent will require to settle the Market Transaction must be provided by the Client:
(i) in the case of a sale of APX Products, the date by which the Client must provide all documents and security holder information (including, if applicable, the relevant holder identification number or personal identification number and/or shareholder reference number) required by the Relevant Clearing Participant to meet its Clearing Obligations and/or, Relevant Settlement Participant to meet its Settlement Obligations; and
(h) if the confirmation is a confirmation in respect of a Conditional Sale of an APX Product and the corresponding confirmation in respect of the conditional purchase of the relevant APX Product, the confirmation must be endorsed as conditional and state the condition and the effect of non-fulfilment of the condition.
(b) if requested by the Client, the Market Participant gives to the Client a statement of all the individual prices of the APX Products, as applicable, which are accumulated and averaged under this Rule.
(a) the directions, decisions and requirements of the Market Operator, these Rules, the Market Operating Rules, and where relevant, the Clearing Rules and the Settlement Rules;
(b) the customs and usages of the APX Market; and
3.5.1 Trust accounts APX Market Transactions
A Market Participant must establish one or more clients’ trust accounts for money received by the Market Participant in connection with dealings in APX Products.
(2) Subject to Rule 4.1.7, in addition to complying with the requirements of the Corporations Act to the extent that those requirements apply to dealing in the APX Market, the Market Participant must maintain sufficiently detailed records showing:
(2) Subject to Rule 4.1.8, the Market Participant must, in addition to complying with the requirements of the Corporations Act to the extent that those requirements apply to dealing in the APX Market provided by the Market Operator, maintain sufficiently detailed records showing:
(c) when dealing for clients satisfy certain of its obligations in relation to paragraphs 4.1.1(2)(g), 4.1.1(2)(h) and 4.1.1(2)(i); or
(d) when dealing on its Own Account, satisfy certain of its obligations in relation to subparagraphs 4.1.2(2)(a)(i) to (iv), paragraphs 4.1.2(2)(b), 4.1.2(2)(d), 4.1.2(2)(e) and 4.1.2(2)(f),
(e) all APX Products which are the property of the Market Participant, showing by whom they, or the documents of title to them, are held and if held otherwise than by the Market Participant, whether they are held as security for loans or advances;
(f) all APX Products which are not the property of the Market Participant but for which the Market Participant or any nominee controlled by it is accountable, showing by whom and for whom such Financial Products are held and:
(i) in respect of those which are held for safe custody details sufficient to identify such APX Products; and
(ii) in respect of those which are held for any person or firm or corporation as security for loans or advances made by the Market Participant details sufficient to identify such APX Products;
(2) All APX Products held for safe custody or whose certificates are held for safe custody must either be registered in the name of the client or the Market Participant’s nominee.
(3) The holding of APX Products for security must be authorised in writing by the owner thereof or some other person lawfully authorised to do so.
(4) An authority referred to in subrule (3) must specify the period for which such APX Products or documents of title may be held.
Subject to Rule 5.1.2, a reference to a Market Participant having an order for its own account means that the APX Products to be bought or sold are (in the case of a sale) or will be on the completion of the transaction (in the case of a purchase) beneficially owned by the Market Participant or a Prescribed Person, where the APX Products beneficially owned by a Market Participant or Prescribed Person include APX Products which would appear as assets on the balance sheet or consolidated balance sheet of that Market Participant or Prescribed Person.
(a) an order placed by a life insurance company registered under the Life Insurance Act 1995 (Cwlth) (or equivalent State legislation) on behalf of a statutory fund; or
(e) if the Market Participant has acted in accordance with its procedures to ensure that a person initiating, transmitting or executing an order who is aware of instructions of a client (which is not a Prescribed Person) to deal in the relevant APX Products that has not been entered in a Trading Platform does not use that information to the disadvantage of that client;
(2) In paragraph (1)(c), a reference to a Market Participant giving preference to an order of a client over an order on the Market Participant’s Own Account, means that from the time of receipt of the order until it is fully executed, the Market Participant does not enter into, on its Own Account, a Market Transaction for the same APX Products on the same terms, having regard to subrule (3), unless:
(a) the APX Products are allocated to the client in accordance with paragraph 5.1.6(c); or
(b) the APX Products are allocated to the client pursuant to an allocation policy previously disclosed to the client, to which the client consents, under which the Market Participant may buy or sell (and be allocated) the same APX Products on its Own Account.
5.1.7 Unexecuted order in APX Products—Market Participant not to make Bids or Offers
If a Market Participant has or receives an Order to buy or sell an APX Product underlying a Derivatives Market Contract in the Underlying Market which may materially affect:
(a) the market price of the APX Product in the Underlying Market; or
(b) the level of an Underlying Index, the level of which is calculated by reference to the value of that APX Product and other products,
the Market Participant must not make Bids or Offers to enter into an Options Market Transaction over that APX Product as Principal until the order in the APX Product has been executed in the Underlying Market.
(3) A Market Participant must take reasonable steps to ensure that a person who approves a Market Transaction under subrule (1) takes into account the circumstances of the proposed transaction and anything which might materially affect the price of the relevant APX Product the subject of the Market Transaction.
(i) the efficiency and integrity of the APX Market; or
(1) A Market Participant which uses its system for Automated Order Processing must ensure that the system has in place:
(a) organisational and technical resources, including having appropriate automated filters, filter parameters and processes to record any changes to the filters or filter parameters, to enable Trading Messages to be submitted into the Trading Platform without interfering with the efficiency and integrity of the APX Market or the proper functioning of the Trading Platform;
(b) trading management arrangements, including having appropriate automated filters, filter parameters and processes to record any changes to the filters or filter parameters to enable the ready determination of the origin of all orders and trading messages;
(c) security arrangements to monitor for and prevent unauthorised persons having access to a gateway or an Open Interface Device or to a computer or other device connected to an Open Interface Device, and to ensure that the Automated Order Processing system does not interfere with the efficiency and integrity of the APX Market or the proper functioning of the Trading Platform;
(1) Before using their system for Automated Order Processing, a Market Participant must, for the purposes of providing the certification referred to in Rule 5.6.6, perform a review of the Market Participant’s policies, procedures, system design documentation, including the Market Participant’s procedures for implementation of subsequent changes to the Automated Order Processing software, filters and filter parameters, and other relevant documentation concerning the Market Participant’s compliance with Part 5.6 of these Rules.
(1) Before using their system for Automated Order Processing, the Market Participant must, for the purposes of providing the certification referred to in Rule 5.6.6, obtain written representations that the Market Participant has in place organisational and technical resources, arrangements and controls in relation to the system for Automated Order Processing that meet the requirements of Rule 5.6.3.
(2) The representations referred to in subrule (1) must:
(a) be provided by persons who are suitably qualified and experienced in relation to the organisational and technical resources, arrangements and controls for which they are making the representation;
(1) Before using their system for Automated Order Processing, a Market Participant must:
(a) give a written certification (“AOP Initial Certification”) to ASIC that includes the matters set out in subrule (2); and
(b) receive a written confirmation from ASIC that the AOP Initial Certification complies with subrule (2).
(2) The AOP Initial Certification given by the Market Participant to ASIC must include:
(iii) the representations required by Rule 5.6.5 have been made by persons whom the Market Participant considers to be suitably qualified and experienced in relation to the organisational and technical resources, arrangements and controls for which they are making those representations; and
5.6.8 AOP Material Change Review
(1) Before making a material change to any of the organisational or technical resources, arrangements or controls employed to comply with Rule 5.6.3, the Market Participant must ensure that an appropriately qualified person performs a review (“AOP Material Change Review”) of the material changes to the Automated Order Processing system, the Market Participant’s policies, procedures, system design documentation, including the Market Participant’s procedures for implementation of subsequent changes to the Automated Order Processing software, filters and filter parameters and other relevant documentation concerning the Market Participant’s compliance with Part 5.6 of these Rules.
(b) the version number and name of the Market Participant’s Automated Order Processing system; and
(c) a confirmation by the Market Participant that nothing came to the attention of the Market Participant during the 12 months before the AOP Annual Review date that would indicate that the Market Participant is unable to comply with Part 5.6 of these Rules; and
(d) the name of the directors of the Market Participant referred to in subrule (2).
(iv) one or more APX Products,
A Market Participant must not make a Bid or Offer for, or deal in, any APX Products:
of creating a false or misleading appearance of active trading in any APX Product or with respect to the market for, or the price of, any APX Product; or
a false or misleading appearance of active trading in any APX Product or with respect to the market for, or the price of, any APX Product.
(a) whether the Order or execution of the Order would be inconsistent with the history of or recent trading in that APX Product;
(b) whether the Order or execution of the Order would materially alter the market for, or the price of, the APX Product;
(d) whether the person on whose behalf the Order is placed, or another person who the Market Participant knows to be a Related Party of that person, may have an interest in creating a false or misleading appearance of active trading in any APX Product or with respect to the market for, or the price of, any APX Product;
(g) whether there appears to be a legitimate commercial reason for that person placing the Order, unrelated to an intention to create a false or misleading appearance of active trading in or with respect to the market for, or price of, any APX Product; and
A Market Participant must not do anything which results in a market for an APX Product not being both fair and orderly, or fail to do anything where that failure has that effect.
A Market Participant must ensure that a Representative of the Market Participant is available to receive communications from other Market Participants or from the Market Operator from during Trading Hours, unless otherwise determined in writing by ASIC and notified to the Market Participant.
Part 5.10 Dealing in APX Products
5.10.1 Market Participants may not deal in APX Products for which Official Quotation will be sought
Except as permitted in Rule 5.10.2, a Market Participant is prohibited, either in its own office or elsewhere, from making quotations or dealing in a new issue or placement of APX Products (except Loan Securities):
until those APX Products have been granted Official Quotation.
5.10.2 When Market Participants may deal in APX Products for which Official Quotation will be sought
Notwithstanding Rule 5.10.1 but subject to any other provisions of these Rules and the Market Operating Rules, a Market Participant may deal in APX Products to which Rule 5.10.1 applies in the following circumstances:
(a) a Market Participant may underwrite or sub-underwrite a new issue or placement of APX Products;
(b) a Market Participant may dispose of APX Products if those APX Products comprise an underwriting or sub-underwriting shortfall;
(c) where the APX Products have been issued on a pro-rata basis to holders;
(d) where a listed entity acquires assets and as part or full consideration, issues new APX Products (except Loan Securities) to the vendor and the Market Participant:
(i) has made a prior firm arrangement with the vendor to place these APX Products as soon as they are issued; and
(ii) ensures that the details of the issue to the vendor are advised to the APX Market by the listed entity immediately the APX Products are issued;
(i) makes a placement of new APX Products (except Loan Securities) for which Official Quotation will be sought, and the Market Participant ensures that all investors accepting the APX Products are informed in writing that Market Participants cannot deal in the APX Products either as Principal or agent until Official Quotation is granted in respect of those APX Products;
(ii) accepts selling orders in APX Products (except Loan Securities) for which Official Quotation will be sought, and the Market Participant takes all reasonable steps to ensure that the APX Products are not sold before the APX Products have been granted Official Quotation; or
(iii) accepts selling orders in APX Products (except Loan Securities) where the APX Products are of the same class as APX Products which have already been granted Official Quotation and:
(A) the APX Products have already been issued by the Issuer; and
(B) the fact that the APX Products have been issued has been notified to, and released to the APX Market by, the APX Announcements Office; and
(i) the ETF Securities are in a class of ETF Securities which are quoted on the APX Market;
(iii) the disposal or acquisition is made on the APX Market in accordance with these Rules and the Market Operating Rules;
(iv) there is an arrangement between the Issuer and APX under which the ETF Securities will be granted Official Quotation before settlement of the disposal or acquisition; and
(v) the number of ETF Securities on issue is regularly reported to APX on the basis required by APX.
A Market Participant may deal in new Securities issued by a listed entity for which Official Quotation will not be sought 24 hours after that entity has advised the APX Market of the details of the issue.
5.10.4 Dealings in APX Products suspended from Official Quotation
A Market Participant must not deal in APX Products which have been suspended from quotation or trading.
A Market Participant, an Employee or a director of a Market Participant or a company which is a partner of a Market Participant who or which will be required to acquire APX Products as underwriter or sub-underwriter must not offer such APX Products to clients unless:
(a) they first inform the clients concerned of the closing date of the issue or offering of the APX Products and the reasons for the acquisition; or
Where a Market Participant seeks out-of-pocket expenses involved in the purchase or sale of APX Products, the Market Participant must not cover that charge by an increase or reduction in the price of the APX Products.
(1) Subject to subrule (2), if a Market Participant has reasonable grounds to suspect that:
(2) A Market Participant is not required to notify ASIC under subrule (1) to the extent the Market Participant has reported the information that would otherwise be required to be contained in the notification to the Australian Transaction Reports and Analysis Centre under section 41 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cwlth) or under section 16 of the Financial Transaction Reports Act 1988 (Cwlth).
(1) A Market Participant acting on behalf of a Bidder in relation to a Market Bid for an APX Product must ensure that the bid has been announced to the APX Market in accordance with subrule (2).
(a) a description of the Bid Class of APX Products in the Target and the total number of APX Products in that Bid Class;
(b) the price offered for APX Products in the Bid Class;
(d) the number of APX Products in the Bid Class that the Bidder had a relevant interest in immediately prior to the announcement (expressed as a percentage of the total number of APX Products in the Bid Class); and
(i) as to whether the Bidder will buy APX Products in the Bid Class On-Market before the Offer Period commences and, if so, the maximum number of those APX Products to be bought and the price that will be paid;
(ii) that the Market Bid is an offer to buy all the APX Products in the Bid Class that exist or will exist at any time during the Offer Period for the price offered; and
A Market Participant acting on behalf of a Bidder in relation to a Market Bid must ensure that the following is announced to the APX Market, in writing:
(a) an increase to the price offered for APX Products in the Bid Class;
Part 6.2 Acquisition of APX Products during the Bid Period
6.2.1 Acquisition of APX Products by Bidder
(2) A Market Participant acting on behalf of a Bidder must not offer to buy on behalf of the Bidder APX Products in the Bid Class On-Market during the Bid Period for a price that varies from the consideration offered under the Takeover Bid unless and until an announcement has been made to the APX Market.
(3) For the purposes of subrule (2), the announcement must be made in writing, by facsimile or electronic delivery to the operator of the APX Market.
6.2.2 Acquisition of APX Products by another Bidder
(1) Where APX Products are subject to a Market Bid, a Market Participant acting on behalf of another Bidder, must not buy the APX Products in the Bid Class of the Target on behalf of that Bidder unless and until:
(b) an increase in the price offered under a Market Bid for the APX Products pursuant to Rule 6.1.2,
has been announced to the APX Market in accordance with subrule (2).
(2) For the purposes of subrule (1), the announcement must be made in writing, by facsimile or electronic delivery to the operator of the APX Market.
(b) has made an announcement to the APX Market on behalf of a Bidder to acquire APX Products under a Market Bid; or
(c) acts for a company involved in a buy-back under Chapter 2J of the Corporations Act conducted on a APX Market,
the Market Participant must not accept, or transact, an order to sell APX Products in the Bid Class referred to in paragraph (a) or subject to the announcement referred to in paragraph (b) or subject to the buy-back referred to in paragraph (c) unless the Market Participant:
7.1.1 Provision of data from the Trading Platform
(1) The Market Operator:
(a) must deliver by 5:00pm on each Trading Day an electronic file containing the items set out in subrule (2) to ASIC or to a service provider nominated by ASIC and notified to the Market Operator in accordance with Rule 7.1.2; and
(b) from the day that is 12 months after APX begins to operate the APX Market in accordance with section 13(1) of APX’s Australian market licence, must deliver, or procure delivery of, a live feed of the electronic data items set out in subrule (2) as generated on or by its Trading Platform to ASIC or to a service provider nominated by ASIC and notified to the Market Operator in accordance with Rule 7.1.2.
Notes to ASIC Market Integrity Rules (APX Market) 2013
ASIC Market Integrity Rules (APX Market) 2013 (in force under s798G(1) of the Corporations Act 2001) as shown in this compilation comprises those Rules amended as indicated in the tables below.
ASIC Market Integrity Rules (APX Market) 2013 (F2013L01502)
ASIC Market Integrity Rules (APX Market) Amendment 2013 (No. 1) (F2013L01503)
ASIC Market Integrity Rules (APX Market-Capital) 2014 (F2014L00590)
ASIC Market Integrity Rules (APX Market) Amendment 2014 (No. 1) (F2014L01024)
ASIC Market Integrity Rules (APX Market) Amendment 2015 (No. 1) (F2015L00624)
am. F2013L01503, Schedule 1, item [1]
rep. F2015L00624, Schedule 1, item [1]
rep. F2015L00624, Schedule 1, item [2]
Rule 5.6.3
am. F2013L01503, Schedule 1, item [2]
Rule 5.6.3(b)
am. F2013L01503, Schedule 1, item [3]
Rule 5.6.3(c)
am. F2013L01503, Schedule 1, items [4] and [5]
Rule 5.6.3(d)
ad. F2013L01503, Schedule 1, item [6]
Rule 5.6.3(e)
Rule 5.6.3(2)
ad. F2013L01503, Schedule 1, item [7]
Rule 5.6.4
am. F2013L01503, Schedule 1, item [8]
Rule 5.6.4(2) and the Note
ad. F2013L01503, Schedule 1, item [9]
Rule 5.6.5(1)
am. F2013L01503, Schedule 1, items [10] and [11]
Rule 5.6.5(2)
am. F2013L01503, Schedule 1, item [12]
Rule 5.6.5(2)(a)
am. F2013L01503, Schedule 1, items [13] and [14]
Rule 5.6.5(3) and the Note
ad. F2013L01503, Schedule 1, item [15]
Rule 5.6.6(1)
am. F2013L01503, Schedule 1, item [16]
Rule 5.6.6(1)(a)
am. F2013L01503, Schedule 1, item [17]
Rule 5.6.6(1)(b)
am. F2013L01503, Schedule 1, item [18]
Rule 5.6.6(2)
am. F2013L01503, Schedule 1, item [19]
Rule 5.6.6(2)(d)(iii)
am. F2013L01503, Schedule 1, item [20]
Rule 5.6.6(4) and the Note
ad. F2013L01503, Schedule 1, item [21]
Rule 5.6.6A
rep. F2013L01503, Schedule 1, item [22]
Rule 5.6.7
rep. F2013L01503, Schedule 1, item [23]
Rule 5.6.8 (heading)
am. F2013L01503, Schedule 1, item [24]
Rule 5.6.8
am. F2013L01503, Schedule 1, items [25] to [28]
Rule 5.6.8(2)
ad. F2013L01503, Schedule 1, item [29]
Rule 5.6.8(3)
Rule 5.6.8A
ad. F2013L01503, Schedule 1, item [30]
Rule 5.6.8B
Rule 5.6.9
rep. F2013L01503, Schedule 1, item [31]
Rule 5.6.10
rep. F2013L01503, Schedule 1, item [32]
rep. F2014L01024, Schedule 1, item [1]
rep. F2015L00624, Schedule 1, item [3]
rep. F2015L00624, Schedule 1, item [4]
rep. F2015L00624, Schedule 1, item [5]
rep. F2014L00590, Rule 1.5.1(a)
Schedules 1A to 1C
rep. F2014L00590, Rule 1.5.1(b)
Annexures to Schedule 1A
rep. F2014L00590, Rule 1.5.1(c)