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Client Update: New ASX operating rules and re-branding

3 September 2010

In brief: The role of supervising financial markets has been transferred from ASX Limited to the Australian Securities and Investments Commission and, as a result, ASX Limited has undertaken a re-branding of the operating rules and various entities associated with it. Partner Warwick Painter , Lawyer Jonathan Lee and Law Graduate Rola Lin report.

Transfer of market supervision

As outlined in our Client Update on 2 March 2010, the Federal Government introduced the Corporations Amendment (Financial Market Supervision) Act 2010 (Cth), which transfers the function of supervising licensed financial market participants and authorises the Australian Securities and Investments Commission (ASIC) to introduce new Market Integrity Rules with effect from 1 August 2010.

As authorised by the Corporations Act 2001 (Cth), ASIC has issued separate Market Integrity Rules for both ASX (the equities market) and ASX 24 (the futures market, formerly called the Sydney Futures Exchange (the SFE)), which have largely been adopted from the former ASX Market Rules and SFE Operating Rules. The ASX and ASX 24 Operating Rules continue to cover those market regulation matters that are outside the ASIC Market Integrity Rules. As a result of these changes, the name of ASX Markets Supervision (a wholly owned subsidiary of ASX Limited, which fulfils ASX's oversight role as a market operator) has changed to ASX Compliance to reflect its changed role.

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New operating rules

New operating rules were formally lodged by ASX and SFE with ASIC on 29 June 2010. In formulating the new operating rules, the ASX and ASX 24 have restructured the former rules, with the objective of making them simpler and more concise by using a consistent format for the ASX and ASX 24 rules. Matters covered by the former ASX Market Rules and SFE Operating Rules will now be found in either:

  • the Market Integrity Rules to be supervised by ASIC; or
  • separate operating rules to be administered by the ASX and ASX 24 respectively.

The ASX and ASX 24 operating rules are available on the ASX website. The ASIC Market Integrity Rules are available on the ASIC website.

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Re-branding the ASX entities

In conjunction with issuing new operating rules, ASX Limited has also undertaken a re-branding of its group entities, operating rules and activities. Set out below is a summary of the changes:

Former name (before 1 August 2010) New name (effective from 1 August 2010)
ASX market brands
ASX No change
ASX Markets Supervision ASX Compliance
Australian Clearing House (ACH) ASX Clear
Australian Settlement and Transfer Corporation (ASTC) ASX Settlement
Sydney Futures Exchange (SFE) ASX 24
SFE Clearing Corporation (SFECC) ASX Clear (Futures)
Operating rules
ASX Listing Rules No change
ASX Market Rules ASX Operating Rules
ACH Clearing Rules ASX Clear Operating Rules
ASTC Settlement Rules ASX Settlement Operating Rules
SFE Operating Rules ASX 24 Operating Rules
Clearing Rules of SFE Clearing ASX Clear (Futures) Operating Rules
Austraclear Regulations and Procedures No change
Australian Securities Exchange Disciplinary Processes and Appeals Rulebook ASX Enforcement and Appeals Rulebook and Procedures
ASX entity names
ASX Limited No change
ASX Settlement and Transfer Corporation Pty Limited ASX Settlement Pty Limited
Austraclear Limited No change
Australian Clearing House Pty Limited ASX Clear Pty Limited
SFE Clearing Corporation Pty Limited ASX Clear (Futures) Pty Limited
Sydney Futures Exchange Limited Australian Securities Exchange Limited

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The big picture

While some of the changes may appear to be confusing, the following is a summary of their impact:

  • the primary equities market is still called ASX and is operated by ASX Limited;
  • the primary futures market is now called ASX 24 and is operated by Australian Securities Exchange Limited;
  • ASX Limited administers all operating rules for ASX except for market supervision functions covered by the ASIC Market Integrity Rules;
  • Australian Securities Exchange Limited administers all operating rules for ASX 24 except for market supervision functions covered by the ASIC Market Integrity Rules;
  • clearing functions for equities are provided by ASX Clear Pty Limited and settlement functions are provided by ASX Settlement Pty Limited; and
  • clearing functions for futures are provided by ASX Clear (Futures) Pty Limited.

For further information, please contact:

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