Australian Securities and Investments Commission
ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 –
Subrules 1.2.1(1) and (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) of the ASIC Market Integrity Rules (Competition in Exchange Markets) 2011 (the Competition Rules).
 
Title
 
2.      This instrument is ASIC Class Rule Waiver [CW 12/1710].
 
Commencement
 
3.      This instrument commences on the later of:
 
(a)    1 January 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      ASIC Class Rule Waiver [CW 11/1103] and ASIC Class Rule Waiver [CW 12/233] are withdrawn.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 Equity Market Product which is:
                                               (i)      the same as the Best Available Bid or Best Available Offer;
                                             (ii)      higher than the Best Available Bid and lower than the Best Available Offer by one or more Price Steps; or
                                           (iii)      at the Best Mid-Point, where the Best Mid-Point is not limited to standard Price Steps for the Equity Market Product.
 
Interpretation
 
7.      In this instrument:
 
ASX means ASX Limited (ACN 008 624 691).
 
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, means the highest Pre-Trade Transparent Bid, for Equity Market Products in the same class as the Equity Market 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, means the lowest Pre-Trade Transparent Offer, for Equity Market Products in the same class as the Equity Market 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.
 
Bid has the meaning given by Rule 1.4.3 of the Competition Rules.
 
Equity Market Product has the meaning given by Rule 1.4.3 of the Competition Rules.
 
Offer has the meaning given by Rule 1.4.3 of the Competition Rules.
 
Order means an instruction to purchase or sell Equity Market Products, or an instruction to amend or cancel a prior instruction to purchase or sell Equity Market Products.
 
Order Book has the meaning given by Rule 1.4.3 of the Competition Rules.
 
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).
 
Pre-Trade Transparent has the meaning given by Rule 1.4.3 of the Competition Rules.
 
Price Step has the meaning given by Rule 1.4.3 of the Competition Rules.
 
Principal has the meaning given by Rule 1.4.3 of the Competition Rules.
 
Transaction means a transaction in Equity Market Products.
 
 
Dated this 13th day of December 2012
 
 
 
 
Signed by Oliver Harvey
as a delegate of the Australian Securities and Investments Commission