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.
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.
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.
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 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)|
|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|
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.
- Robert PickPartner,
Ph: +61 3 9613 8721
- Andrew PascoePartner,
Ph: +61 8 9488 3741
- Chelsey DrakePartner,
Ph: +61 7 3334 3202
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