Market structure reforms

Exceptions to the pre-trade transparency requirements

On 5 December 2012 we released the Information Sheet 164

ASIC market integrity rules: Exceptions to the pre-trade transparency requirements.

This information sheet has now been superseded by RG 172.

Key announcements on market structure, dark liquidity and high frequency trading

On 20 November 2012 we made new market integrity rules to address risks emerging from developments in market structure, including growth in automated trading and the changing nature of dark liquidity.

The new market integrity rules will be phased in over an 18-month period.

The new amending instruments are:

  • ASIC Market Integrity Rules (ASX Market) Amendment 2012 (No. 3)

  • ASIC Market Integrity Rules (Chi-X Australia Market) Amendment 2012 (No. 3)

  • ASIC Market Integrity Rules (Competition in Exchange Markets) Amendment 2012 (No. 1)

We also released guidance:

  • updated Regulatory Guide 223 Guidance on ASIC market integrity rules for competition in exchange markets (RG 223), to give guidance on the draft new or amended market integrity rules for extreme price movements, enhanced data for market surveillance, pre-trade and post-trade transparency. RG 223 was replaced on 4 May 2018 by RG 172,  RG 265 and RG 266.

  • an addendum to Regulatory Guide 172 Australian market licences: Australian operators (RG 172) to give guidance on systems and controls for holders of an Australian market licence

  • Regulatory Guide 241 Electronic trading (RG 241) on the new rules relating to automated order processing, consolidated with the updating of guidance which is currently contained in ASX guidance notes, and

  • Report 311 Response to submissions on CP 179 and CP 184 Australian market structure: Draft market integrity rules and guidance (REP 311).

Read the media release on market structure, dark liquidity and high frequency trading

Draft market integrity rules and guidance on automated trading

On 13 August 2012 ASIC published Consultation Paper 184 Australian market structure: Draft market integrity rules and guidance on automated trading (CP 184).

The proposed rules and guidance include:

  • draft new market integrity rules requiring direct control over filters and automated controls to suspend orders and/or systems;

  • draft rules that revise the process for certifying systems and reviewing changes at least yearly; and

  • draft regulatory guidance on automated trading, covering issues consulted on in CP 168, consolidated with updated guidance currently contained in ASX guidance notes. This includes guidance on testing of systems and filters/controls - the ability to manage highly automated trading, and stress testing of order flow.

Read the media release about CP 184

Further consultation on key market structure reforms

On 28 June 2012, we published a consultation paper (Consultation Paper 179 Australian market structure: Draft market integrity rules and guidance (CP 179)), draft market integrity rules and guidance on market structure reforms. This marks the next stage of an ongoing consultation process with industry on these reforms. ASIC announced its approach to the rules and guidance in April, and these proposed rules and guidance for consultation are consistent with that approach.

We have also published the feedback report on Consultation Paper 168 Australian equity market structure: Further proposals (CP 168), Report 290 Response to submissions on CP 168 Australian equity market structure: Further proposals (REP 290).

Read the media release about CP 179 and REP 290

Second-phase consultation paper on equity market structure issues

On 20 October 2011 we released Consultation Paper 168 Australian equity market structure: Further proposals (CP 168) seeking views on proposed market integrity rules relating to:

  • automated trading including high frequency trading;

  • volatility controls for extreme price movements;

  • enhanced data for supervision;

  • the product scope of best execution; and

  • pre-trade transparency and price formation in the market.

CP 168 builds on the findings of Consultation Paper 145 Australian equity market structure: Proposals (CP 145) issued in November 2010, which canvassed issues related to the introduction of competition to exchange markets in Australia and the release on 29 April 2011 of new market integrity rules for competition.

Read the media release about CP 168

More information

ASIC makes key announcements on market structure market structure, dark liquidity and high frequency trading, 12-290MR, 20 November 2012

ASIC consults on electronic trading and releases fourth market supervision report, 12-195MR, 13 August 2012

ASIC consults further on key market structure reforms, 12-143MR, 28 June 2012

Consultation Paper 179 Australian market structure: Draft market integrity rules and guidance

Report 290 Response to submissions on CP 168 Australian equity market structure: Further proposals

ASIC consults on equity market structure issues, 11-225MR, 20 October 2011

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Last updated: 12/08/2013 12:00