ASIC Makes Rules For Capital For Chi-X Market

ASIC today registered market integrity rules for capital for the Chi-X market, which is due to start operating on 31 October 2011.

These rules are modeled closely on the market integrity rules for capital for the ASX market, to ensure a level playing field for the two equities markets. Participants who are market participants of both ASX and Chi-X markets can satisfy the capital rules for both markets with one amount of capital, and need report to ASIC under one set of rules only.

These rules were proposed in Consultation Paper 161 Proposed ASIC market integrity rules for capital and related requirements: ASX, ASX 24 and Chi-X markets (CP 161).

The rules amend the existing ASIC market integrity rules for the Chi-X market by inserting two new chapters for capital and capital reporting. ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2011 (No. 1) has amended the pre-existing ASIC Market Integrity Rules (Chi-X Australia Market) 2011.

ASIC has also released an amended Regulatory Guide 226 Guidance on ASIC market integrity rules for capital and related requirements: ASX, ASX 24 and Chi-X markets (RG 226), providing guidance on the operation of the capital rules for the Chi-X market, as well as the capital rules for the ASX and ASX 24 (futures) markets.

Background
On 1 August last year, ASIC took over general supervision of trading on Australian domestic licensed financial markets. As part of that supervisory role, ASIC has made market integrity rules for the ASX, ASX 24 and Chi-X markets.