This follows the proclamation of the relevant Act and approval of the relevant regulations earlier yesterday by the Executive Council.
The Minister also announced his intention to approve the Market Integrity Rules on which industry has been consulted. These rules, together with the amended ASX operating rules, which the Minister also announced he would allow, will form the regulatory rules for the new market supervision regime.
On Wednesday 7 July 2010, ASIC and ASX concluded an historic and formal agreement on the transfer of certain supervisory activities to ASIC. The agreement will underpin their continued cooperation in ensuring a seamless transition from ASX to ASIC on 1 August 2010 and their continued cooperation going forward.
ASIC Chairman Mr Tony D’Aloisio said, ‘We welcome the announcement that the transfer of supervision will commence on 1 August 2010. ASIC is ready to assume this important responsibility. We have an integrated market surveillance system in place and we have developed a streamlined markets analysis methodology and relationship management model. We have built and trained a quality Market & Participant Supervision team, consisting of ASIC talent and external people with specialist market experience. The team will be complemented by ASX surveillance staff that will transfer to ASIC on 1 August 2010.
‘We are currently engaging with market participants via a roadshow and through their industry associations to assure them that while the responsibility for supervising the rules is changing, their existing obligations will not change at this time. The market integrity rules are generally the same as those which exist currently and we intend to approach our supervision in a way which is consistent with the current approach.’
Mr D’Aloisio went on to thank ASX for their cooperation in ensuring a smooth transition.
Background
Regulatory Guide 214 outlines ASIC’s approach to the supervision of its Market Integrity Rules for the ASX and ASX 24 Markets (the proposed new name for the Sydney Futures Exchange) and will help market participants comply with the new ASIC Market Integrity Rules.
The ASIC Market Integrity Rules will operate alongside revised ASX Operating Rules and ASX 24 Operating Rules, to be made available by ASX tomorrow. These will take effect on commencement of the transfer of supervision.
These market integrity rules and related guidance consist of:
- Market Integrity Rules 1 ASIC/ASX Market Integrity Rules (MIR 1)
- Market Integrity Rules 2 ASIC/ASX 24 Market Integrity Rules (MIR 2)
- Regulatory Guide 214 Guidance on ASIC market integrity rules for ASX and ASX 24 market (RG 214)
- Report 204 Response to submissions on CP 131 Proposed ASIC Market Integrity Rules: ASX and SFE markets (REP 204)
ASIC’s Market Integrity Rules take into account feedback from a number of stakeholders following a public consultation in March this year. Please see Consultation Paper 131 Proposed ASIC Market Integrity Rules – ASX and SFE Markets (CP 131) and the feedback report on this consultation process, Response to submissions on CP 131 Proposed ASIC Market Integrity Rules – ASX and SFE Markets (REP 204).
Regulatory Guide 214 should be read in conjunction with Consultation Paper 136 Markets Disciplinary Panel (CP136) which outlines the proposed operation of ASIC's Markets Disciplinary Panel which will exercise ASIC's power to issue infringement notices and accept enforceable undertakings relating to breaches of the Market Integrity Rules. ASIC intends to issue its final guidance on this topic before 1 August 2010.
In the coming weeks ASIC will issue in-principle Market Integrity Rules for the National Stock Exchange of Australia, SIM Venture Securities Exchange (previously known as the Bendigo Stock Exchange), Asia Pacific Exchange Limited and IMB Ltd.
For information on market supervision and surveillance go to www.asic.gov.au/markets
Download:
- Market Integrity Rules 1 ASIC/ASX Market Integrity Rules
- Market Integrity Rules 1 ASIC/ASX Market Integrity Rules (without Appendix)
- Appendix to Market Integrity Rules 1 ASIC/ASX Market Integrity Rules
- Market Integrity Rules 2 ASIC/ASX 24 Market Integrity Rules
- Market Integrity Rules 2 ASIC/ASX 24 Market Integrity Rules (without Appendix)
- Appendix to Market Integrity Rules 2 ASIC/ASX 24 Market Integrity Rules
- Regulatory Guide 214 Guidance on ASIC market integrity rules for ASX and ASX 24 markets
- Report 204 Response to submissions on CP 131 Proposed ASIC Market Integrity Rules: ASX and SFE markets
- Consultation Paper 131 Proposed ASIC Market Integrity Rules – ASX and SFE Markets
- Consultation Paper 136 Markets Disciplinary Panel