I, Molly Choucair, delegate of the Australian Securities and Investments Commission, acting with the written consent of the Minister, make the following legislative instrument.Date 15 September 2026Molly ChoucairContentsPart 1—Preliminary 31 Name of legislative instrument....................................32 Commencement...............................................33 Authority....................................................34 Schedules....................................................3Schedule 1—Amendments 4ASIC Market Integrity Rules (Futures Markets) 2017....................4
This instrument commences on the day that is 18 months after the day it is registered on the Federal Register of Legislation.Note: The register may be accessed at www.legislation.gov.au.
Each instrument that is specified in a Schedule to this instrument is amended as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
1The whole of the Instrument Omit “Chi-X” (wherever occurring), substitute “TMX”.2After paragraph 1.1.8(1)(c)Insert:(ca) paragraph 2.2B.6(1)(b); or(cb) subrule 2.2B.7(1); or(cc) subrule 2.2B.10(2); or3Rule 1.4.3 (after the definition of Anomalous Order Threshold)Insert:Annual Review has the meaning given by subrule 2.2B.9(1).4Rule 1.4.3 (after the definition of Auction)Insert:Authorised Person means a person who:(a) is either:(i) a client of a Trading Participant;(ii) an agent of a client of a Trading Participant; or(iii) a Representative of a Trading Participant; and(b) is permitted by a Trading Participant to submit orders into the Trading Participant’s Trading System.5Rule 1.4.3 (definition of Chi-X Market)Repeal the definition.6Rule 1.4.3 (after the definition of Crossing System Monthly Report)Insert:Dealing Rules means these Rules and the operating rules of a Market that govern the submission of Orders and the execution and reporting of Market transactions on the Trading Platform of the relevant Market.7Rule 1.4.3 (after the definition of Immediate Family)Insert:Initial Certification has the meaning given by paragraph 2.2B.6(1)(a).Initial Certification Review has the meaning given by subrule 2.2B.5(1).8Rule 1.4.3 (after the definition of Market)Insert:Material Change has the meaning given by subrule 2.2B.8(1).Material Change Review has the meaning given by subrule 2.2B.8(1).9Rule 1.4.3 (the definition of Order System)Repeal the definition.10Rule 1.4.3 (the definition of Principal)Omit “when used in Chapter 5”.11Rule 1.4.3 (the definition of Representative)Omit “910A”, substitute “9”.12Rule 1.4.3 (the definition of Terminal)Repeal the definition.13Rule 1.4.3 (after the definition of Substantial Holder)Insert:TMX Market means the financial market operated by TMX Australia Exchange Pty Limited ACN 129 584 667 under Australian Market Licence (Chi-X Australia Pty Ltd) 2011.Trading Algorithm means a computer algorithm which automatically determines with limited or no human intervention, one or more parameters of an Order such as whether to initiate an Order, the timing, price or quantity of the Order or how to manage the Order after its submission, but does not include systems or processes used only:(a) for the purpose of routing Orders to one or more Trading Platforms;(b) for the submission of Orders involving no determination of any Order parameters;(c) for producing confirmations of Orders; or(d) for post-trade processing of executed transactions.14Rule 1.4.3 (after the definition of Trading Suspension)Insert:Trading System means a system that registers Trading Messages for submission into a Trading Platform.Trading System Requirements means the requirements of Part 2.2B.15Rule 2.2.1Repeal the rule.16Rule 2.2.4Repeal the rule, substitute:2.2.4 Order records for Client Orders(1) This Rule applies to a Market Participant, other than a Principal Trader, who receives an instruction to enter into a Market transaction on behalf of a person (the Client) whether or not a Trading Message corresponding to that instruction is entered into or matched on a Trading Platform of a Market.(2) In addition to complying with the requirements of the Corporations Act to the extent that those requirements apply to dealing in the relevant Market, the Market Participant must maintain sufficiently detailed records showing the following:(a) particulars of the instruction, including, without limitation:(i) the financial product (including the Contract month) to be bought or sold;(ii) the number thereof;(iii) any price or time related aspect of the instruction; and(iv) any time limit on the instruction;(b) the name of the Client, account number and Client ID;(c) if the Client did not give the instruction, the name of the person who gave the instruction;(d) if applicable, the name and capacity of any Representative of the Market Participant who was nominated by the Market Participant as being responsible for the instruction (unless paragraph 2.2.4(2)(e) applies);(e) if applicable, the name and capacity of any Representative of the Market Participant who:(i) received the instruction;(ii) entered the instruction into a Trading System;(iii) submitted a Trading Message relating to the instruction into a Trading Platform; and(iv) otherwise acted on the instruction.(f) any amendment of any kind to the instruction or resulting Trading Message (including, without limitation, cancellation of the instruction or Trading Message, variation of the number of financial products to be bought or sold or variation of any price or time related aspect of the instruction or Trading Message);(g) if the instruction gives rise to a Trading Message, the Trading Message that corresponds to that instruction;(h) if the Trading Message referred to in paragraph 2.2.4(2)(g) gives rise to a Market transaction:(i) the Market on which that Market transaction occurred; and(ii) the Market transaction that corresponds to that Trading Message; and(i) the date and time at which each stage of processing of the instruction and any resulting Trading Message occurred, including but not limited to:(i) the giving of the instruction;(ii) the receiving of the instruction;(iii) the entering of the instruction into a Trading System;(iv) the submitting of a Trading Message relating to the instruction into a Trading Platform;(v) the amendment of the instruction or Trading Message; and(vi) the Market transaction resulting from a Trading Message.
(1) This Rule applies to a Market Participant that makes a decision, or gives an instruction to, enter into a Market transaction for a House Account, whether or not the Market transaction is executed.(2) The Market Participant must, in addition to complying with the requirements of the Corporations Act to the extent that those requirements apply to dealing in the relevant Market, maintain sufficiently detailed records showing:(a) particulars of the decision or instruction, including, without limitation:(i) the financial products to be bought or sold;(ii) the number thereof;(iii) any price or time related aspect of the instruction or decision; and(iv) any time limit on the instruction or decision;(b) if applicable, the name and capacity of any Representative of the Market Participant who:(i) generated the instruction or made the decision;(ii) entered the instruction into a Trading System; and(iii) submitted a Trading Message relating to the instruction or decision into a Trading Platform;(c) any amendment of any kind to the instruction or decision or resulting Trading Message (including, without limitation, cancellation of the instruction, decision or Trading Message, variation of the number of financial products to be bought or sold or variation of any price or time related aspects of the instruction or decision);(d) if the instruction or decision gives rise to a Trading Message, the Trading Message that corresponds to that instruction or decision;(e) if the Trading Message referred to in paragraph 2.2.4A(2)(d) gives rise to a Market transaction:(i) the Market on which that Market transaction occurred; and(ii) the Market transaction that corresponds to that Trading Message; and(f) the date and time at which each stage of processing of the instruction or decision and any resulting Trading Message occurred, including but not limited to:(i) the giving of the instruction or making of the decision;(ii) the entering of the instruction into a Trading System;(iii) the submitting of a Trading Message relating to the instruction or decision into a Trading Platform;(iv) the amendment of the instruction, decision or Trading Message; and(v) the Market transaction resulting from the Trading Message.
A Market Participant must maintain a separate record of all Error Trades containing the following information:(a) a description of the trade including the Market where the trade was executed and the deal number supplied by the relevant Market operator (if any);(b) the name of the Representative responsible for the Error Trade;(c) the name of the Representative responsible for the execution of the trade;(d) a detailed explanation as to how the trade occurred, including details of the original Client Order (if any) which precipitated the error;(e) any subsequent action taken by the Market Participant in relation to that trade; and(f) the financial result of the trade.
(1) A Market Participant must maintain accounting records that correctly record and explain the transactions of the Market Participant and the financial position of the Market Participant.(2) In relation to Calls, a Market Participant must at all times maintain accounting records that accurately record, in respect of each Call for Initial Margin or Variation Margin made upon Clients:(a) the date and time at which the Call was received;(b) the amount of the Call;(c) the extent to which the Call was payable by reason of:(i) trading undertaken by the Market Participant on its own account or an account of a related corporation; and(ii) trading undertaken by the Market Participant for Clients, so that the amount of any such Call is apportioned accordingly;(d) the extent to which the Call was met from:(i) monies in the Clients’ segregated account; and(ii) other sources (specifying those sources and the amount satisfied from each such source); and(e) the date and time at which the Call was met.
(1) A Market Participant must make the records referred to in Rules 2.2.4, 2.2.4A and 2.2.4C immediately after the event to which they relate.(2) A Market Participant must, for each paragraph of Rule 2.2.4B, make a record of the information as soon as practicable after an error trade is identified or, if that information is not then available, as soon as practicable after the information becomes available.
A Market Participant must retain the records referred to in Rules 2.2.4, 2.2.4A, 2.2.4B and 2.2.4C for seven years from the date the record is made.17After Rule 2.2.9Insert:
(1) If a Trading Message embedded with a Trading Participant’s unique identifier is submitted in a Trading Platform, the Trading Message is taken for all purposes under these Rules to have been submitted in the Trading Platform by or with the knowledge of the Trading Participant.(2) A Trading Participant must ensure that a Representative of the Trading Participant that submits a Trading Message into a Trading Platform:(a) has written authorisation from the Trading Participant to do so;(b) is suitably qualified and experienced to perform that function; and(c) has demonstrated to the Trading Participant knowledge of the Dealing Rules governing the process of dealing and reporting Market transactions on the Trading Platform of that Market, and the relevant practices of the operator of that Market.(3) A Trading Participant is responsible for the accuracy of the details of all Trading Messages containing the Trading Participant’s unique identifier that are submitted into a Trading Platform.
A Trading Participant must have and maintain the necessary organisational and technical resources to ensure that:(a) Trading Messages submitted by the Trading Participant do not interfere with:(i) the efficiency and integrity of a Market; or(ii) the proper functioning of a Trading Platform; and(b) the Trading Participant complies at all times with these Rules and the operating rules of all Markets of which it is a Trading Participant.
(1) A Trading Participant must:(a) have for each of its Client Accounts, appropriate limits based on the Market Participant’s analysis of the Clients’ financial resources or other relevant factors; and(b) record any changes to the limits in paragraph (1)(a).(2) A Trading Participant must:(a) have for each of its House Accounts, appropriate limits based on the Market Participant’s analysis of its financial resources or other relevant factors; and(b) record any changes to the limits in paragraph (2)(a).(3) A Trading Participant must maintain records of the matters referred to in subrules (1) and (2) for a period of seven years.
A Trading Participant must at all times ensure that use of its Trading System does not interfere with:(a) the efficiency and integrity of a Market;(b) the proper functioning of any Trading Platform; or(c) the efficiency and integrity of any Crossing System operated by the Trading Participant.
(1) Without limiting any other rule, in relation to a Trading System, a Trading Participant must have in place appropriate controls and arrangements, including the following:(a) controls to prevent Trading Messages being submitted into a Trading Platform that interfere with the efficiency and integrity of the relevant Market or the proper functioning of that Trading Platform, including but not limited to having automated filters, filter parameters and processes to record any changes to the filters or filter parameters;(b) security arrangements to monitor for and prevent unauthorised persons having access to a Trading System;(c) controls, including automated controls, that enable immediate suspension, limitation or prohibition of trading in respect of:(i) one or more Authorised Persons or clients;(ii) the operation of one or more Trading Algorithms used by the Trading Participant;(iii) one or more financial products;(iv) one or more Markets;(v) one or more Trading Systems;(d) controls that enable immediate:(i) suspension of, limitation of, or prohibition on, the entry into a Market of Trading Messages in a series of related Trading Messages where the Trading Participant has identified that Trading Messages in the series have entered a Market and have interfered with or are likely to interfere with the efficiency or integrity of the relevant Market;(ii) cancellation of Trading Messages in a series that have already entered a Market where the entry of further messages in the series has been suspended, limited or prohibited under subparagraph (i);(iii) suspension of, limitation of, or prohibition on, the entry into any Crossing System operated by the Trading Participant of Orders in a series of related Orders where the Trading Participant has identified that Orders in the series have entered the Crossing System operated by the Trading Participant and have interfered with or are likely to interfere with the efficiency or integrity of the Crossing System; and(iv) cancellation of Orders in a series that have already entered a Crossing System operated by the Trading Participant where the entry of further Orders in the series has been suspended, limited or prohibited under subparagraph (iii).(2) A Trading Participant must at all times have direct control over all its Trading System controls required under subrule (1)(a).2.2B.3Monitoring and surveillance of trading activity (1) A Trading Participant must have in place adequate monitoring systems that enable the Trading Participant to immediately identify a Trading Message or series of Trading Messages that are likely to interfere or have interfered with the efficiency or integrity of a Market, or the proper functioning of a Trading Platform.(2) A Trading Participant must have in place adequate post-trade surveillance arrangements that enable the Trading Participant to identify as soon as possible a Trading Message or series of Trading Messages that may have created, or may have been intended to create, the appearance described in Rule 3.1.2, having regard to the matters set out in Rule 3.1.2A.(3) A Trading Participant must maintain records of Trading Messages identified under subrule (1) or (2) and any measures taken in respect of those Trading Messages, for a period of seven years from the date of the relevant Trading Message.2.2B.4Responsibility and testing of Trading Algorithms (1) Without limiting any other rule, a Trading Participant must have appropriate controls and governance arrangements (including written procedures) for the development, testing, approval, deployment and monitoring of all Trading Algorithms used by the Trading Participant or that the Trading Participant makes available to a client.(2) For the purposes of subrule (1), a Trading Participant must ensure that before it:(a) uses a Trading Algorithm for the first time; or(b) first makes a Trading Algorithm available to any client; or(c) makes a material change to a Trading Algorithm,the Trading Participant takes reasonable steps to test that the Trading Algorithm will not interfere with the efficiency and integrity of a Market, or any Crossing System operated by the Trading Participant or the proper functioning of a Trading Platform.(3) For the purposes of subrule (1) and (2), the development and testing of the Trading Algorithm should be conducted by persons who are suitably qualified to do so.(4) A Trading Participant must maintain records that demonstrate compliance with subrules (1) and (2) for a period of seven years.
(1) Before using a Trading System in relation to a Market, a Trading Participant must review the Trading System for the relevant Market (Initial Certification Review) as required under this Rule.(2) For the purposes of subrule (1), the Initial Certification Review must include:(a) assessment of whether the Trading Participant’s controls, arrangements and resources in relation to the Trading System enable the Trading Participant to comply with Rule 2.2A.2 and Part 2.2B of these Rules;(b) review of the Trading Participant’s policies, procedures, system design documentation, and other relevant documentation in relation to the Trading System;(c) review of the Trading Participant’s policies, procedures and other relevant documentation for implementation of changes to the Trading System; and(d) testing of the Trading Participant’s controls, arrangements and resources in relation to the Trading System.(3) A Trading Participant must ensure the Initial Certification Review is conducted by a person who is suitably qualified and experienced to review the Trading Participant’s controls, arrangements and resources relating to the Trading System.(4) A Trading Participant must document and retain records for a period of at least seven years relating to:(a) the methodology, scope and results of the Initial Certification Review; and(b) any recommended changes applied to the controls, arrangements and resources relating to the Trading System as a result of the Initial Certification Review.
(1) Before using a Trading System in relation to a Market, a Trading Participant must, for the relevant Market:(a) give a written certification (Initial Certification) to ASIC that includes the matters set out in subrule (2); and(b) receive a written confirmation from ASIC that the Initial Certification complies with subrule (2).(2) The Initial Certification given by the Trading Participant to ASIC must include:(a) the name of the Trading Participant;(b) the version number and name of the Trading Participant’s Trading System;(c) the Market to which the Initial Certification relates;(d) whether or not the Trading System permits a client of the Trading Participant to enter Orders into the Participant’s Trading System;(e) a statement by the Trading Participant whether the Trading Participant has performed the Initial Certification Review required by Rule 2.2B.5;(f) a statement whether the Trading Participant has in place organisational and technical resources, arrangements and controls in relation to the Trading System that meet the requirements of Rules 2.2A.2 and 2.2B.2 for the relevant Market; and(g) a statement by at least one officer of the Trading Participant who has responsibility for a function of the Trading Participant’s business that uses the Trading System (responsible officer) that the information provided in the Initial Certification in relation to (a) to (f) above is accurate, the name and position of each responsible officer providing the statement, and the date the responsible officer made the statement.
(1) A Trading Participant must, if directed by ASIC in writing to do so, provide a further certification for a Market from an appropriately qualified person acceptable to ASIC as to compliance by the Trading Participant with the Trading System Requirements for the relevant Market.(2) A Trading Participant must comply with a direction under subrule (1) within the time specified in the direction.
(1) Before making a material change (Material Change) to a Trading System in relation to a Market or to the controls, arrangements and resources in relation to that Trading System, a Trading Participant must:(a) review (Material Change Review) the Material Change as required under this Rule; and(b) make a written statement upon completion of the Material Change Review by at least one officer who has responsibility for a function of the Trading Participant’s business that uses the Trading System (responsible officer) that the Trading Participant’s controls, arrangements and resources in relation to the Material Change enable the Trading Participant to comply with Rule 2.2A.2 in relation to the Trading System and Part 2.2B of these Rules, for the relevant Market, and the name and position of each responsible officer providing the statement, and the date the responsible officer made the statement.(2) For the purposes of paragraph (1)(a), if the Material Change is implemented, the Material Change Review must include:(a) assessment of whether the Trading Participant’s controls, arrangements and resources relating to or impacted by the Material Change in relation to the Trading System enable the Trading Participant to comply with Rule 2.2A.2 and Part 2.2B of these Rules;(b) review of the Trading Participant’s policies, procedures, system design documentation and other relevant documentation relating to or impacted by the Material Change;(c) review of the Trading Participant’s policies, procedures and other relevant documentation for implementation of the Material Change; and(d) testing of the Trading Participant’s controls, arrangements and resources in relation to the Material Change.(3) A Trading Participant must ensure the Material Change Review is conducted by a person who is suitably qualified and experienced to review the Trading Participant’s controls, arrangements and resources relating to the Trading System.(4) A Trading Participant must document and retain records for a period of at least seven years relating to:(a) the methodology, scope and results of the Material Change Review; and(b) any recommended changes in relation to the Material Change applied to the Trading Participant’s controls, arrangements and resources as a result of the Material Change Review.
(1) After a Trading Participant begins using a Trading System in relation to a Market, the Trading Participant must review (Annual Review) the Trading System at least once every 12 months unless the Trading Participant has performed a Material Change Review in that period.(2) For the purposes of subrule (1), the Annual Review must include an assessment of whether the Trading Participant’s controls, arrangements and resources in relation to the Trading System enable the Trading Participant to comply with Rule 2.2A.2 and Part 2.2B of these Rules and as necessary involve;(a) review of the Trading Participant’s policies, procedures, system design documentation, and other relevant documentation in relation to the Trading System;(b) review of the Trading Participant’s policies, procedures and other relevant documentation for implementation of changes to the Trading System; and(c) testing of the Trading Participant’s controls, arrangements and resources in relation to the Trading System.(3) A Trading Participant must ensure the Annual Review is conducted by a person who is suitably qualified and experienced to review the Trading Participant’s controls, arrangements and resources relating to the Trading System.(4) Where a Trading Participant performs an Annual Review of a Trading System, the Trading Participant must make a written statement within 20 business days upon completion of the Annual Review from at least one officer who has responsibility for a function of the Trading Participant’s business that uses the Trading System (responsible officer) about whether the Trading Participant has complied with the Trading Participant’s obligations in this rule and the name and position of each responsible officer providing the statement, and the date the responsible officer made the statement.(5) A Trading Participant must document and retain records for a period of at least seven years relating to:(a) the methodology, scope and results of the Annual Review; and(b) any recommended changes in relation to the Annual Review applied to the Trading Participant’s controls, arrangements and resources as a result of the Annual Review.
(1) This Rule applies where ASIC reasonably considers that:(a) a Trading Participant is not complying with the Trading System Requirements in relation to one or more Markets; or(b) it is otherwise appropriate to direct a Trading Participant to take the actions referred to in subrule (2).(2) A Trading Participant must, if directed to do so by ASIC:(a) cease the submission of all or a class of Trading Messages into a Trading Platform in relation to one or more Markets until ASIC is satisfied that the Trading Participant complies with the Trading System Requirements for the relevant Market; or(b) immediately suspend, limit or prohibit the submission of all or a class of Trading Messages into one or more Trading Platforms in respect of:(i) one or more Authorised Persons or clients;(ii) one or more financial products;(iii) one or more Markets; or(iv) the operation of one or more Trading Algorithms used by a Trading Participant,as required by the direction.18After Rule 3.1.1 Insert:
A Market Participant must not do anything which results in a market for a Contract not being both fair and orderly, or fail to do anything where that failure has that effect.19Rule 3.1.2 Repeal the rule, substitute:
(1) A Market Participant must not, as Principal, offer to purchase or sell a Contract or deal in any Contract:(a) with the intention; or(b) if that offer to purchase or to sell, or dealing, has the effect, or is likely to have the effect;of creating a false or misleading appearance:(c) of active trading in any Contract; or(d) with respect to the market for, or the price of, any Contract.(2) A Market Participant must not offer to purchase or sell a Contract or deal in any Contract on account of any other person where:(a) the Market Participant intends to create; or(b) the Market Participant is aware that the person (or if the person is acting on behalf of another person, that other person) intends to create; or(c) the Market Participant ought reasonably suspect that:(i) taking into account the matters specified in Rule 3.1.2A, the person (or if the person is acting on behalf of another person, that other person) has placed the Order with the intention of creating; or(ii) taking into account the matters specified in Rule 3.1.2A, the Order placed will have the effect of creating;a false or misleading appearance:(d) of active trading in any Contract; or(e) with respect to the market for, or the price of, any Contract.
The following matters concerning the circumstances of the Order to which the offer to purchase, sell or deal in any Contract relates, are specified for the purpose of paragraph 3.1.2(2)(c):(a) whether the Order or execution of that Order would be inconsistent with the history of or recent trading in that Contract;(b) whether the Order or execution of that Order would alter the market for, or the price of, the Contract;(c) the time the Order is entered or any instructions concerning the time of entry of that Order;(d) whether a person mentioned in paragraph 3.1.2(2)(c) on whose behalf the Order is placed or another person who the Market Participant knows to be a Related Party of that person mentioned in paragraph 3.1.2(2)(c), may have an interest in creating a false or misleading appearance of active trading in any Contract or with respect to the market for, or the price of, any Contract;(e) whether the Order is accompanied by settlement, delivery or security arrangements which are unusual;(f) where the Order appears to be part of a series of Orders, whether when put together with other Orders which appear to make up the series, the Order or the series is unusual having regard to the matters referred to in this Rule 3.1.2A;(g) whether there appears to be a legitimate commercial reason for a person mentioned in paragraph 3.1.2(2)(c) placing the Order, unrelated to an intention to create a false or misleading appearance of active trading in any Contract or with respect to the market for, or price of, any Contract;(h) whether the proposed transaction, bid or offer which is proposed will involve no change of beneficial ownership;(i) the frequency with which Orders are placed by a person mentioned in paragraph 3.1.2(2)(c);(j) the volume of Contracts the subject of each Order placed by a person mentioned in paragraph 3.1.2(2)(c);(k) the extent to which a person mentioned in paragraph 3.1.2(2)(c) amends or cancels an instruction to purchase or sell a Contract relative to the number of transactions executed for that person; and(l) any other relevant matter.20After paragraph 5.5.1(2)(b)Insert:(3) A Market Participant that is subject to Rule 2.2B.2 of these Rules does not have to comply with this Rule.Note: Rule 2.2B.2 requires Trading Participants to have Trading System controls and arrangements.