Australian Securities and Investments Commission
ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 –
Subrules 1.2.1(1) and (3) and Rule 1.2.3 – Class Rule Waiver
 
 
Enabling provision
 
1.      The Australian Securities and Investments Commission (ASIC) makes this instrument under subrules 1.2.1(1) and (3) and Rule 1.2.3 of the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 (the Competition Rules).
 
Title
 
2.      This instrument is ASIC Class Rule Waiver [CW 13/680].
 
Commencement
 
3.      This instrument commences on the later of:
 
(a)    26 May 2013; and
(b)   the date it is registered under the Legislative Instruments Act 2003.
 
Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, section 4 (definition of register). The FRLI may be accessed at http://www.frli.gov.au/.
 
Withdrawal
 
4.      ASIC Class Rule Waiver [CW 12/1710] is withdrawn.
 
Waiver
 
5.      ASIC relieves a Participant from the obligation to comply with Rule 4.1.1(1) of the Competition Rules in the case where the Participant enters into a Transaction:
(a)    as an “ETF Special Trade” in accordance with Rule [3310] of the ASX Operating Rules and reported to ASX in accordance with Procedure 3310 of the ASX Operating Rules Procedures; or
(b)   as a “Crossing of a Derivative/Cash Combination” in accordance with paragraph 6 of Part B of Procedure 4060 of the ASX Operating Rules Procedures and reported to ASX in accordance with Procedure 3500 of the ASX Operating Rules Procedures.
 
6.      ASIC relieves a Participant from the obligation to comply with Rule 4.1.1(1) of the Competition Rules in the case where the Participant enters into a Transaction other than by matching of an Order on an Order Book and:
 
(a)    the Participant acts:
                                               (i)      on behalf of both buying and selling clients to that Transaction; or
                                             (ii)      on behalf of a buying or selling client on one side of that Transaction and as Principal on the other side;
(b)   the Transaction is executed at a price per Relevant Product which is:
                                               (i)      higher than the Best Available Bid and lower than the Best Available Offer by one or more Price Steps; or
                                             (ii)      at the Best Mid-Point, where the Best Mid-Point is not limited to standard Price Steps for the Relevant Product; and
(c)    the consideration for the Transaction is greater than $0.
 
7.      ASIC relieves a Participant from the obligation to comply with Rule 4.1.1(1) of the Competition Rules, during the period from  26 May 2013 to 26 September 2013 (inclusive), in the case where the Participant enters into a Transaction in a Relevant Product by matching of an Order on an Order Book of the Chi-X Market and:
(a)    the Transaction results from:
                                               (i)      execution of a Market Pegged Order or Primary Pegged Order at a price per Relevant Product which is the same as the Best Available Bid or Best Available Offer; or
                                             (ii)      execution of a Mid-Point Order at a price per Relevant Product which is higher than the Best Available Bid and lower than the Best Available Offer and which is at a price other than a standard Price Step; 
(b)   in accordance with the requirements of the Chi-X Operating Rules; and
(c)    the consideration for the Transaction is greater than $0.
 
Interpretation
 
8.      In this instrument:
 
ASX Operating Rules means the operating rules of ASX as at the date of this instrument.
 
ASX Operating Rules Procedures means the procedures to the ASX Operating Rules as at the date of this instrument.
 
Best Available Bid, in relation to a Transaction in a Relevant Product, means the highest Pre-Trade Transparent Bid, for Relevant Products in the same class as the Relevant Products the subject of the Transaction, available across all Order Books other than the Order Book maintained by or on behalf of ASX and known as “PureMatch”, at the time the Transaction is executed.
 
Best Available Offer, in relation to a Transaction in a Relevant Product, means the lowest Pre-Trade Transparent Offer, for Relevant Products in the same class as the Relevant Products the subject of the Transaction, available across all Order Books other than the Order Book maintained by or on behalf of ASX and known as “PureMatch”, at the time the Transaction is executed.
 
Best Mid-Point means:
 
(Best Available Bid + Best Available Offer) ÷ 2.
 
Chi-X means Chi-X Australia Pty Ltd.
 
Chi-X Market means the financial market operated by Chi-X.
 
Chi-X Operating Rules means the operating rules of Chi-X as at the date of this instrument.
 
Market Pegged Order means an Order submitted to the Chi-X Market as a ‘Market Pegged Order’, that maintains a price relative to Best Available Bid (for a Sell Order) or Best Available Offer (for a Buy Order).
 
Mid-Point Order means an Order submitted to the Chi-X Market as a ‘Mid-Point Order’ with a limit price of half a standard Price Step, that maintains a price higher than the Best Available Bid and lower than the Best Available Offer.
 
Participant means a participant of:
(a)    the financial market operated by ASX; or
(b)   the financial market operated by Chi-X Australia Pty Ltd (ACN 129 584 667).
 
Primary Pegged Order means an Order submitted to the Chi-X Market as a ‘Primary Pegged Order’, that maintains a price relative to the Best Available Bid (for a Buy Order) or Best Available Offer (for a Sell Order).
 
Relevant Products means Equity Market Products and CGS Depository Interests.
 
9.      In this instrument, unless the contrary intention appears, capitalised terms have the meaning given by the Competition Rules.
 
 
Dated this 24th day of May 2013
 
 
 
 
Signed by Oliver Harvey
as a delegate of the Australian Securities and Investments Commission