ASIC increases low volume financial market transaction threshold by $1 million

ASIC has remade a legislative instrument which exempts low-volume financial markets from the requirement to hold an Australian market licence, raising the relevant transaction value threshold from $1.5 million to $2.5 million.

The increase in threshold reflects factors including inflation, with ASIC noting the threshold had not changed since 2016.

ASIC Corporations (Low Volume Financial Markets) Instrument 2026/756 (ASIC Instrument 2026/756) continues the relief provided under ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888, with the new instrument scheduled to sunset on 1 October 2031.

ASIC consulted on remaking the instrument, CS 60 Proposed remake of low-volume financial markets instrument, in July and August 2026, and received three submissions.

All submissions supported in-principle the continuation of the relief, however, two submissions raised some concerns about the appropriate eligibility thresholds.

ASIC considers that the thresholds adopted in the instrument strike an appropriate balance between reducing compliance costs for operators of financial markets and managing regulatory risk.

Background

Under the Legislation Act 2003, all legislative instruments are automatically repealed, or sunset, after 10 years, unless ASIC takes action to preserve them.

A financial market is considered a low-volume financial market if, in the 12-month period commencing on the date the financial market was named on ASIC’s register or any subsequent 12-month period:

  • no more than 100 completed transactions are entered into, and
  • the total value of those transactions does not exceed $2.5m.

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