Pursuant to section 37(8) of the Securities Markets Act 1988, the Financial Markets Authority gives the following notice.
N o t i c e
1. Title and commencement-(1) This notice may be cited as the Authorised Futures Exchange (Australian Securities Exchange Limited) Notice 2012.
(2) This notice shall come into force on the day after
the date of its publication in the New Zealand Gazette and shall continue in force until revoked by Financial Markets Authority.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
Act means the Securities Markets Act 1988 and includes any re-enactment or replacement thereof.
Company means Australian Securities Exchange Limited (ABN 83 000 943 377).
Market means the derivatives market operated by
the Company and conducted in accordance with the Operating Rules, known as the ASX 24 Market.
NZ Participant means a Participant who is resident or incorporated in New Zealand, or who is carrying on the business of dealing in futures contracts in New Zealand, whether or not that Participant is also carrying on business in any other jurisdiction.
Operating Rules means the rules of the Company in relation to the derivatives market operated by the Company and as amended or replaced from time to time, known as the ASX 24 Operating Rules.
Participant means Trading Participant as defined in the Operating Rules.
(2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning as in the Act.
3. Authorisation - Australian Securities Exchange Limited declared an authorised futures exchange-
(1) The Company is declared to be authorised to conduct a futures market in New Zealand.
(2) The authorised futures market which the Company is authorised to conduct is the Market.
(3) The authorisation in clause 3(1) of this notice is subject to the conditions set out in clauses 4 to 9 of this notice.
4. Conditions relating to Operating Rules-(1) The Company must ensure that copies of the Operating Rules
are available for public inspection, free of charge:
(a) during normal office hours, at the registered office of the Company; and
(b) at all reasonable times, on a website operated by or for the Company.
(2) The Company must notify Financial Markets Authority of any proposed amendments to the Operating Rules not less than 30 days, or such other time as agreed with Financial Markets Authority, before such amendments are effected.
(3) The Company must notify Financial Markets Authority if it seeks to transfer or assign any of its rights, entitlements, or obligations under the Operating Rules to any person not less than 30 days before such transfer or assignment becomes effective.
5. Conditions relating to the authorisation of
NZ Participants-(1) The Company must require NZ Participants to be authorised to carry on the business of dealing in futures contracts under Part 3 of the Act, unless that NZ Participant is only dealing on its own account.
(2) The Company must require NZ Participants to notify the Company immediately if that Participant’s authorisation to carry on the business of dealing in futures contracts under Part 3 of the Act is revoked.
6. Conditions relating to clearing arrangements-
(1) Clearing and settlement arrangements for transactions effected through the Market must be those provided by ASX Clear (Futures) Pty Limited.
(2) The Company must notify Financial Markets Authority of any proposed amendments to the rules and procedures
of ASX Clear (Futures) Pty Limited not less than 30 days, or such other time as agreed with the Financial Markets Authority, before such amendments are effected.
7. Conditions relating to reporting obligations-(1) The Company must give Financial Markets Authority the following information:
(a) The current name and business address of each NZ Participant; and
(b) the name of the ASX Clear (Futures) Pty Limited clearing member used by each NZ Participant to clear the trades of that NZ Participant; and
(c) details of any written complaint received by the Company during the reporting period concerning an NZ Participant or that NZ Participant’s directors or other personnel where such complaint has not been resolved to the satisfaction of the complainant; and
(d) any information that the Australian Securities and Investment Commission has obtained from the Company during the reporting period in relation to
a NZ Participant or in relation to the Company’s operation of the Market.
(2) The Company must give Financial Markets Authority the information under clause 7(1) within 30 days of the end of each reporting period. For the purposes of this clause 7, the reporting period is each six-month period ending on
30 June or 31 December.
(3) The Company must notify Financial Markets Authority if the Company:
(a) takes any disciplinary action for a contravention of the Operating Rules against any NZ Participant; or
(b) knows or suspects that a NZ Participant has committed, is committing, or is likely to commit a significant contravention of:
(i) the Operating Rules; or
(ii) the rules and procedures of ASX Clear (Futures) Pty Limited, if applicable; or
(iii) the Act, the Securities Act 1978, any enactment made under either of those Acts, or any enactment which replaces either of those Acts; or
(iv) any enactment effective in the Company’s place of incorporation which the NZ Participant must comply with because of its participation in the Market.
(4) The Company must give the notice under clause 7(3) as soon as practicable after taking the disciplinary action, or knowing or suspecting the person has committed, is committing, or is likely to commit the significant contravention.
(5) Any notice given by the Company under clause 7(3) must include:
(a) the person’s name and contact details; and
(b) if it relates to a disciplinary action, the grounds for, nature of, and reasons for the action taken; and
(c) if it relates to a known or suspected contravention, the facts supporting the Company’s view and
to which obligation the known or suspected contravention relates; and
(d) any other information reasonably required by Financial Markets Authority in order to carry out
its functions.
(6) The Company must, if requested to do so in writing by the Financial Markets Authority and if not prohibited by any applicable law:
(a) give to Financial Markets Authority (or any person authorised by Financial Markets Authority) all information, documentation, assistance, and access
to the Company’s facilities; and
(b) answer any question asked by Financial Markets Authority (or any person authorised by Financial Markets Authority),
that are necessary or desirable to enable Financial Markets Authority to fulfil its functions.
(7) The Company must notify Financial Markets Authority as soon as practical if:
(a) the Company’s licence to operate a derivatives market in the Company’s place of incorporation is varied or revoked; or
(b) any statutory requirement applying to the company as a result of, or in connection with, its operation of a derivative market is amended in a manner which materially alters an obligation or requirement imposed on the Company.
(8) The Company must notify Financial Markets Authority as soon as practicable if:
(a) the Company becomes aware that the Company,
or any of the Company’s directors or senior management personnel, is subject to investigation by any regulatory or law enforcement agency; or
(b) the Company, or any of the Company’s directors or senior management personnel, is subject to any adverse finding by any Court, tribunal, regulatory authority, or disciplinary committee; or
(c) the Company becomes aware that ASX Clear (Futures) Pty Limited, or any of its directors or senior management personnel, is subject to investigation by any regulatory or law enforcement agency; or
(d) ASX Clear (Futures) Pty Limited, or any of its directors or senior management personnel, is subject to any adverse finding by any Court, tribunal, regulatory authority, or disciplinary committee.
(9) The Company must, within three months after the end
of its financial year, give a report to Financial Markets Authority on the extent to which it has complied with its obligations under clause 8 of this notice in the preceding financial year.
(10) The company must provide Financial Markets Authority with a copy of the Australian Securities and Investments Commission’s annual assessment of the Company within three working days of its publication.
(11) The company must at all times ensure Financial Markets Authority has been given notice of the person, or persons, Financial Markets Authority should contact in the first instance about matters it requires a response from
the company on.
8. Conditions relating to market supervision-(1) The Company must:
(a) to the extent that it is reasonably practicable, do all things necessary to ensure that the Market operates in a fair, orderly and transparent manner; and
(b) have adequate arrangements for supervising the Market, including arrangements:
(i) for handling conflicts between the commercial interests of the Company and the need for the Company to ensure that the Market operates in a fair, orderly and transparent manner; and
(ii) for monitoring the conduct of Participants on or in relation to the Market; and
(iii) for enforcing compliance with the Operating Rules; and
(iv) that ensure there is a sufficiently independent adjudicative body to adjudicate on contraventions of the Operating Rules that
are referred to it; and
(c) have sufficient resources (including financial, technological and human resources) to operate the Market properly and for the required supervisory arrangements to be provided.
9. Conditions relating to jurisdiction-The Company must submit to the non-exclusive jurisdiction of the
New Zealand Courts in actions brought by Financial Markets Authority.
10. Revocation-The Authorised Futures Exchange
Notice 2001, published in the New Zealand Gazette,
13 December 2001, No. 170, page 4186, is revoked.
Dated at Wellington this 31st day of January 2012.
ELAINE CAMPBELL, Head of Compliance Monitoring, Financial Markets Authority.