ASIC today published amendments to ASIC market integrity rules to ensure warrants and exchange traded funds (ETFs) admitted to quotation on Chi-X Australia Pty Ltd (Chi-X)’s new investment product market are subject to an appropriate regulatory regime. This follows the recent variation to Chi-X’s Australian market licence and amendments to Chi-X’s operating rules.
Chi-X is aiming to launch its investment product market in late-2015, commencing with the quotation and trading of warrants, followed by the launch of ETFs in 2016. In February 2015, Chi-X released a consultation paper outlining its proposals.
ASIC worked closely with Chi-X and consulted with industry on changes to the regulatory framework. Feedback from this consultation is set out in Report 453 Response to submissions on CP 235 Proposed amendments to ASIC market integrity rules for the Chi-X investment product market (REP 453).
The changes are necessary to maintain market integrity and ensure a consistent regulatory framework is in place, in particular, for market participants and investors who may seek to trade warrants and ETFs on the Chi-X and/or ASX markets.
ASIC has also made minor amendments to the ASIC Market Integrity Rules (ASX Market) 2010 to incorporate recent changes to the definitions of ‘ETF’ and ‘managed fund’ in the ASX Operating Rules. These changes were also addressed during consultation.
Background
Chi-X was granted a market licence in May 2011, authorising it to operate a financial market in securities and managed investment scheme interests. Chi-X commenced operating its financial market in October 2011. Before the recent variations to its market licence and operating rules, Chi-X only offered trading services in securities and listed managed investment products that are admitted to quotation on the ASX market, including ETFs.
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