ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2017 (No. 1)

I, Greg Yanco, delegate of the Australian Securities and Investments Commission, with the written consent of the Minister, make the following legislative instrument.

Date 10 November 2017

Greg Yanco

Contents

Part 1—Preliminary

1 Name of legislative instrument

2 Commencement

3 Authority

4 Schedule

Schedule 1—Amendments

ASIC Market Integrity Rules (Competition in Exchange Markets) 2011

Part 1—Preliminary

1 Name of legislative instrument

This instrument is ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2017 (No. 1).

2 Commencement

This instrument commences on the day after it is registered on the Federal Register of Legislative Instruments.

Note: The register may be accessed at www.legislation.gov.au.

3 Authority

This instrument is made under subsection 798G(1) of the Corporations Act 2001.

4 Schedule

Schedule 1 amends the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011.

Schedule 1—Amendments

ASIC Market Integrity Rules (Competition in Exchange Markets) 2011

1  Rule 1.4.3, definition of Equity Market Product, sub-paragraph (c)(ii)

After “;”, omit “or”.

2 Rule 1.4.3, definition of Equity Market Product, paragraph (d)

Omit “,”, substitute “; or”.

3 Rule 1.4.3, definition of Equity Market Product, after paragraph (d)

Insert “(e) a Transferable Custody Receipt,”.

4 Rule 1.4.3, after the definition of Financial Product

Insert:

Foreign Quoted Shares, in relation to a Transferable Custody Receipt, means shares of a foreign company that is listed on the New York Stock Exchange, NASDAQ Global Market or NASDAQ Global Select Market, where the shares are in a class of shares that is able to be traded on at least one of those financial markets.

5 Rule 1.4.3, after the definition of Transaction Costs

Insert:

Transferable Custody Receipts means units of beneficial ownership in Foreign Quoted Shares where the units:

(a)        arise from a custodial and sub-custodial arrangement under which:

(i)         a custodian holds, directly or indirectly, the Foreign Quoted Shares on behalf of, or in trust for, an AFSL holder that holds an AFSL that covers the provision of a custodial or depository service; and

(ii)       the AFSL holder holds their equitable rights or interests in the Foreign Quotes Shares arising from the custodial arrangement mentioned in subparagraph (i) on behalf of, or in trust for, a person; and

(b)       are issued without the involvement of the issuer of the Foreign Quoted Shares; and

(c)        are able to be traded on the Chi-X Market.