Public consultations

15/11/19

On 15 November 2019, ASX released a consultation paper on the first of three tranches of operating rule amendments required to facilitate the implementation of the new system that will replace CHESS in April 2021. These relate to accounts, participants, securities and pre-settlement aspects for Day 1 CHESS replacement system functionality. 
The consultation paper invites feedback from users and other stakeholders on the operation of the draft tranche 1 rule amendments, including any unintended consequences. 

Written submissions are requested by 17 January 2020.

10/10/19

ASX Limited (“ASX”) has today released its response to the submissions it received on its 28 November 2018 consultation paper Simplifying, clarifying and enhancing the integrity and efficiency of the ASX listing rules. The consultation proposed a broad range of changes to the ASX Listing Rules and related guidance.

Accompanying the consultation response are:

• the final changes ASX is making to its Listing Rules addressing the feedback received in consultation submissions, along with a mark-up comparing the final version of the rule changes to the consultation version.
• mark-ups of the changes ASX is making to the consultation versions of the following Guidance Notes:
  • GN 1 Applying for Admission – ASX Listings
  • GN 11 Restricted Securities and Voluntary Escrow
  • GN 12 Significant Changes to Activities
  • GN 13 Spin-outs of Major Assets
  • GN 21 The Restrictions on Issuing Equity Securities in Chapter 7 of the Listing Rules
  • GN 24 Acquisitions and Disposals of Substantial Assets Involving Persons in a Position of Influence
  • GN 25 Issues of Equity Securities to Persons in a Position of Influence.
• mark-ups of the changes ASX is making to the existing versions of the following Guidance Notes (these were not included in the consultation package):
  • GN 4 Foreign Entities Listing on ASX
  • GN 5 CHESS Depositary Interests (CDIs)
  • GN 17 Waivers and In-Principle Advice
  • GN 19 Performance Shares
  • GN 20 ASX Online
  • GN 23 Quarterly Reports
  • GN 29 Applying for Admission – ASX Debt Listings
  • GN 30 Notifying an Issue of Securities and Applying for Their Quotation
  • GN 34 Naming Conventions for Debt and Hybrid Securities.
• a mark-up of the changes ASX is making to the 15 April 2019 version of GN 33 Removal of Entities from the ASX Official List.
• a new GN 35 Security Holder Resolutions.
• mark-ups of the changes ASX is making to the consultation versions of the following Listing Rule Appendices:
  • Appendix 1A Application for Admission to the ASX Official List (ASX Listing)
  • Appendix 1B Application for Admission to the ASX Official List (ASX Debt Listing)
  • Appendix 1C Application for Admission to the ASX Official List (ASX Foreign Exempt Listing).
• mark-ups of the changes ASX is making to the existing versions of the following Listing Rule Appendices (these were not included in the consultation package):
  • Appendix 4C Quarterly Cash Flow Report for Entities Subject to Listing Rule 4.7B
  • Appendix 5B Mining Exploration Entity and Oil and Gas Exploration Entity Quarterly Cash Flow Report.

National roadshow presentation

Attached are the slides for the ASX's national roadshow presentation on the listing rule and guidance note changes. 

Effective date

Subject to the receipt of the necessary regulatory approvals, with two exceptions, the final rule changes and all of the revised Listing Rule Appendices and Guidance Notes above will come into effect on 1 December 2019.

The first exception is the changes to Listing Rule 1.1 condition 13 and Listing Rule 12.6 to require the person who has been appointed by an entity to be responsible for communication with ASX in relation to listing rule matters to have completed an approved education course and examination covering listing rule compliance matters. To allow more time to complete the development of ASX’s online education course and examination, ASX has decided to push back the transition date for these particular rule changes to 1 July 2020. 

The second exception is the changes to the Appendix 4C and Appendix 5B quarterly cash flow reports, which will come into effect for the quarter beginning 1 January 2020 and ending 31 March 2020. 

Consultation feedback

ASX received 48 written submissions in response to its consultation paper, with nine provided on a confidential basis. The submissions provided on a non-confidential basis are available at the links below:

Allens
Alternative Investment Management Association (AIMA)
Ascent Capital
Australasian Investor Relations Association (AIRA)
Australian Accounting Standards Board (AASB)
Australian Council of Superannuation Investors (ACSI)
Australian Custodial Services Association (ACSA)
Australian Financial Markets Association (AFMA)
Australian Institute of Company Directors (AICD)
Australian Private Equity & Venture Capital Association Limited (AVCAL)
Australian Securities and Investments Commission (ASIC)
Australian Shareholders Association (ASA)
Automic Group
Baker McKenzie
Blackpeak Capital
Bonomelli Legal
Chris Cuffe
Company Matters
Computershare
Deloitte Touche Tohmatsu
Ernst & Young
Governance Institute of Australia (GIA)
Herbert Smith Freehills
Hopgood Ganim
Jackson McDonald
KWM
Law Council of Australia
Link Market Services
Listed Investment Companies & Trusts Assoc (LICAT)
Maddocks
OneVentures
Ownership Matters
Pitcher Partners
Property Council of Australia
Steinepreis Paganin
Thomson Reuters
Van Eck
Wembley Corporate Services
Wilson Asset Management

03/10/19

On 3 October 2019, ASX released a consultation paper outlining potential changes to the contract specifications and order management functionality for the 3 and 10 Year Bond Futures Roll. The purpose of the consultation is to identify opportunities to improve the efficient functioning of the Bond Roll for a broad range of market users. The following four options are outlined in the consultation paper:

• Reduction in the minimum tradeable tick increment for the Bond Roll
• Increase to the maximum allowable order size
• Development of Good Till Cancelled (GTC) spread order functionality
• Use of Pre-trade Risk Management tools

Written submissions are requested by Tuesday 3 December 2019

30/08/19

On 30 August 2019, ASX released its response to submissions on the July 2018 consultation paper, Transfers to the CHESS Subregister. 

ASX received twelve responses to the consultation paper from settlement participants, industry groups, share registries and other relevant stakeholders. 

Subject to regulatory clearance, ASX intends to implement the proposed amendments to the ASX Settlement Operating Rules and Procedures described in the response to consultation on or around Q4 2019.

19/08/19

On 19 August 2019, ASX released its response to submissions on ASX’s consultation paper proposing changes to the 90 Day Bank Bill Futures contract. 

ASX received 26 written submissions in response to the consultation paper, all of which were provided on a confidential basis.

ASX intends to implement a number of changes to the 90 Day Bank Bill Futures in a phased approach.  These changes and the target implementation dates for the first phase are outlined in the response paper. 

05/08/19

On 05 August 2019, ASX released its response to submissions on ASX’s 8 March 2019 consultation paper proposing changes to Guidance Note 10 Business Continuity and Disaster Recovery and Guidance Note 1 Admission as a Participant to address cyber resilience. 

ASX received two written submissions in response to the consultation paper, one of which was provided on a confidential basis. The other non-confidential submission is available here.

Effective date for the amendments 

For existing participants, the proposed reduction in the recovery time objective (RTO) in Guidance Note 10 will be phased in over a 3 year period.

Existing participants will have 6 months from the date of publication of the revised Guidance Note 10 to comply with all of the other changes in Guidance Note 10. 

All new applicants for admission as participants will be expected to comply fully with revised Guidance Notes 1 and 10, including the proposed reduction in RTO, as a condition of being admitted as a participant.

15/04/19

ASX has today released a revised version of ASX Listing Rules Guidance Note 33 Removal of Entities from the ASX Official List (GN 33). Changes to GN 33 were foreshadowed in ASX’s consultation paper Simplifying, clarifying and enhancing the integrity and efficiency of the ASX Listing Rules issued on 28 November 2018.

ASX has released the revised version of GN 33 earlier than foreshadowed in the consultation paper to:

• incorporate immediately some of the feedback received in the consultation including, in particular, a change to section 2.7 of GN 33 to require a special resolution rather than an ordinary resolution to approve a voluntary de-listing; and
• give the market advance notice of the deferral of the effective date for the changes to ASX’s long term suspended entity policy in section 3.4 of GN 33.

The changes to ASX’s long term suspended entity policy will now take effect on Monday 3 February 2020, rather than the date originally proposed in the consultation paper of 1 July 2019. This is to allow currently suspended entities more time to pursue a transaction that could lead to them being reinstated to trading. All of the other changes in GN 33 take effect immediately.

To assist readers to identify the changes, ASX has also released mark-ups comparing the new GN 33 to the version in force prior to 15/05/19  and the proposed version in ASX’s consultation paper.

8/03/19

On 8 March 2019, ASX released a consultation paper seeking stakeholder input on ASX’s proposal to update Guidance Note 10 ‘Business Continuity and Disaster Recovery’ and Guidance Note 1 ‘Admission as a Participant’ in relation to cyber resilience.

ASX has taken steps to update its guidance on business continuity and disaster recovery and is asking participants to provide comments on the updated guidance, in particular, if the proposed transition arrangements are sufficient for participants to align their current business continuity arrangements with the updated guidance in Guidance Note 10.

ASX is also proposing to clarify the risk management framework obligations in Guidance Note 1 to specifically incorporate cyber risk as a key consideration. ASX is asking participants whether they agree with the proposal not to impose prescriptive requirements on how participants should manage cyber risk and instead to require participants to align their cyber resilience arrangements to one or more of the latest global or national cyber standards and guidance.

Written submissions are requested in electronic form by Friday 3 May 2019.

30/01/19

On 30 January 2019, ASX released a consultation paper outlining potential changes to the contract specifications and order management functionality for the Australian 90 Day Bank Bill Futures.  The consultation paper has been published in response to customer feedback requesting a number of changes to the Bank Bill Futures.  The following potential changes are outlined in the consultation paper:

• Change to the settlement process to make the contract cash settled at expiry
• Application of expiry position limits
• Reduction in the minimum price increment for specific bank bill futures months
• Increase to the maximum allowable order size.
• Listing of serial bank bill futures
• Development of Good Till Cancelled (GTC) spread order functionality

Written submissions are requested by Tuesday 30 April 2019.

28/11/18

ASX Limited (“ASX”) has today released a consultation paper Simplifying, clarifying and enhancing the integrity and efficiency of the ASX listing rules seeking feedback on a major package of proposed listing rule amendments. Broadly speaking, the proposed changes ASX is consulting upon can be grouped into 8 categories:

• improving market disclosures and other market integrity measures;
• making the rules simpler and easier to follow;
• making aspects of the listing process and ongoing compliance with the listing rules more efficient for issuers and for ASX;
• updating the timetables for corporate actions;
• enhancing ASX’s powers to operate the market and to monitor and enforce compliance with the listing rules;
• correcting gaps or errors in the listing rules;
• general drafting improvements , including removing redundant rules; and
• more and better guidance.

The consultation paper is accompanied by the following annexures:

1. a mark-up showing the proposed changes to the ASX listing rules, with detailed drafting notes  explaining the reasons for the changes;
2. a mark-up of the changes proposed to GN 1 Applying for Admission – ASX Listings;
3. proposed new GN 11 Restricted Securities and Voluntary Escrow;
4. a mark-up of the changes proposed to GN 12 Significant Changes to Activities;
5. proposed new GN 13 Spin-outs of Major Assets;
6. proposed new GN 21 The Restrictions on Issuing Equity Securities in Chapter 7 of the Listing Rules;
7. proposed new GN 24 Acquisitions and Disposals of Substantial Assets Involving Persons in a Position of Influence;
8. proposed new GN 25 Issues of Equity Securities to Persons in a Position of Influence;
9. a mark-up of the changes proposed to GN 33 Removal of Entities from the ASX Official List;
10. the proposed new Appendix 1A Application for Admission to the ASX Official List (ASX Listing), Appendix 1B Application for Admission to the ASX Official List (ASX Debt Listing) and Appendix 1C Application for Admission to the ASX Official List (ASX Foreign Exempt Listing);
11. an early proto-type of the proposed new Appendix 2A Application for quotation of securities;
12. an early proto-type of the proposed revised Appendix 3B Announcement of proposed issue of securities; and
13. an early proto-type of the proposed new Appendix 4A Statement of CDIs on Issue.

A copy of the roadshow presentation for the consultation can be viewed here.

Feedback on the consultation package is due by Friday, 1 March 2019 and should be sent to by email to:
mavis.tan@asx.com.au
or by mail to:
ASX Limited
PO Box H224
Australia Square NSW 1215
Attention: Mavis Tan

28/09/18

On 28 September, ASX released its response to consultation on the management of the ASX Market. The response provides a summary of the feedback received from consultation paper released on 21 March 2018 that sought comment from market stakeholders on the management of the ASX Market. This paper provides the ASX responses.

07/09/18

On 7 September, ASX released its response to consultation on proposed amendments to the ASX Clear Operating Rules and the ASX Settlement Operating Rules to: (i) support the removal of the Registered Holder Collateral Cover Authorisation form for client accounts; and (ii) enable a third party to take a security interest over collateral and excess cash where prescribed conditions are met. This document summarises feedback received from stakeholders on ASX’s April consultation and ASX’s response to that feedback. Subject to regulatory clearance, the rule amendments will be effective 1 March 2019.

04/09/18

On 4 September 2018, ASX released its response to consultation on CHESS Replacement: New Scope and Implementation Plan. This provides a summary of the feedback received and the specific changes ASX will be making as a result. This included feedback on: the new and enhanced business functionality of the replacement system; some redundant services that would be decommissioned; the draft implementation plan; and the associated testing and transition arrangements.

ASX received 41 written submissions, including 20 that were provided on a confidential basis.  The submissions provided on a non confidential basis are available on the section of the website dedicated to CHESS Replacement.

13/07/18

On 13 July 2018, ASX released a consultation paper outlining potential changes to the documentary requirements for transfers from issuer holdings to CHESS holdings by ASX settlement participants that are not also ASX trading participants. The consultation paper invites feedback from stakeholders on the potential changes by 10 August 2018.

14/05/18

On 14 May 2018 ASX made a submission to a Treasury consultation on draft regulations amending elements of the ASIC Supervisory Cost Recovery Levy. The submission noted that it was important that the authorities carefully consider the impact on markets of the mechanism used to share costs amongst equity and futures market participants.

01/05/18

On 1 May 2018 ASX made a submission to a Treasury consultation on the exposure draft of the Treasury Law Amendment (ASIC Fees) Regulations 2018. The submission supported an appropriate fee-for-service model to recover the costs of demand driven services but noted some further clarity was necessary to explain how it will apply in practice.

27/04/18

On 27 April, ASX released a consultation paper, CHESS Replacement: New Scope and Implementation Plan.  This paper invites feedback to assist in planning for the delivery of the replacement system to CHESS.

The paper sets out:

• changes to be delivered in connection with the CHESS replacement system through new business features;
• describes the system architecture for the DLT-based model and the different connectivity options;
• a draft plan for the implementation of the new features; and
• testing and transition arrangements.

Written submissions are requested by Friday 22 June 2018.

03/04/18

On 3 April, ASX released a consultation paper, ASX Clear: Removal of Registered Holder Collateral Cover Authorisation Form. This paper seeks feedback from Participants on ASX’s proposals to:

• remove the Registered Holder Collateral Cover Authorisation form for client accounts (RHCCA form) from the ASX Clear Operating Rules Procedures. ASX intends to replace the RHCCA form with amendments to the ASX Settlement Operating Rules and ASX Clear Operating Rules and Procedures that preserve ASX Clear’s interest in, and rights to use and dispose of, CHESS securities lodged as collateral for clients trading options market contracts; and
• enable a third party to take a security interest over collateral and excess cash where the parties to the security interest agree between themselves in writing that ASX Clear’s security interest has priority.

Written submissions are requested by Tuesday 15 May 2018.

21/03/18

On 21 March 2018, ASX released a Consultation Paper on the Management of the ASX Market.

This consultation paper follows a review of actions taken by the ASX during technical issues or outages, including:

• the application of session states (e.g. Enquire and Adjust);
• the management of orders during incidents;
• communication with the Market during incidents;
• the current ASX market practice of staggered group openings; and
• action when only a subset of securities are available for trading.

ASX is also taking the opportunity to consult on the management of orders following a code change for an ASX listed entity.

Written submissions should be made by 30 April 2018.

18/12/17

On 18 December 2017 ASX made a submission to a Treasury consultation on the introduction of a fee-for-service element to the ASIC industry funding model. The submission supported an appropriate fee-for-service model to recover the costs of demand driven services but noted some further clarity was needed on how the two elements of the funding model interact and how some of the particular fees will be applied in practice.

6/12/17

On 6 December 2017, ASX released a Response to Consultation on proposed changes to the process for advising of changes to equity market security status. The document summarises feedback received from stakeholders on ASX’s September consultation paper and ASX’s response to that feedback.

24/11/17

On 24 November 2017, ASX released a Response to Consultation on proposed amendments to the ASX Clear (Futures) Operating Rules to support the clearing of NZD OTC Interest Rate Derivatives through ASX’s OTC Clearing Service in Q4 2017. This document summarises feedback received from stakeholders on ASX’s September consultation paper and ASX’s response to that feedback.

The response document also includes revised and final Operating Rules that are subject to regulatory approval.

ASX has today released its Reverse Takeovers – Final Listing Rule Amendments. This document outlines the final Listing Rule Amendments to regulate reverse takeovers, along with additional amendments to the voting exclusions in listing rule 14.11 and minor amendments to listing rules 1.2 and 1.3 to clarify the accounts that an applicant for listing must provide to ASX with its listing application. These Listing Rule amendments are due to come into effect on 1 December 2017.

The implementation of the final Listing Rule Amendments follows the release on 12 April 2017 of ASX’s Response to Consultation: Reverse Takeovers – Shareholder Approval Requirements – Exposure Draft Listing Rule Amendments which sought comments on an exposure draft of proposed Listing Rule amendments to require shareholder approval for reverse takeovers. ASX received 4 written submissions in response to the consultation paper.  The submissions that were made on a non-confidential basis are available at the links below.

• ACSI
• Australian Shareholders Association
• Ownership Matters
• Law Counsil of Australia

11/09/17

On 11 September, ASX released a consultation paper, ASX OTC Interest Rate Derivatives Clearing. This paper seeks feedback from OTC Participants on proposed amendments to the ASX Clear (Futures) Operating Rules to support the clearing of NZD OTC Interest Rate Derivatives through ASX’s OTC Clearing Service in the fourth quarter of 2017, subject to regulatory clearance.

Written submissions are requested by Friday 13 October 2017.

6/09/17

On 6 September 2017, ASX released a consultation paper ASX-Listed Company Announcements: Processes for advising of changes to security status. The paper seeks feedback on the establishment of an independent FIX gateway to remove existing interdependencies between ASX’s listing operations and ASX Trade in the dissemination of changes to individual security trading status as well as other matters including a proposal to simplify the different periods  during which trading is not permitted after a price sensitive announcement.

Written submissions in response to the consultation paper are requested by Friday 6 October 2017.

25/07/17

ASX has today released a consultation paper in relation to the minimum core capital requirements (MCCR) approach for ASX Clear Participants. ASX is proceeding with the proposed approach as outlined in the January 2017 response to consultation. ASX is seeking response from participants on the drafted amendments to the ASX Clear Rules, ASX Clear Procedures, Capital Liquidity Handbook, and revised business activities return.

 Written responses are requested by Friday, 8 September 2017.

10/07/17

On 10 July 2017, ASX released a consultation paper ASX BBSW Trade and Trade Reporting Guidelines. The paper seeks feedback from stakeholders on the proposed ASX BBSW Trade and Trade Reporting Guidelines. The Guidelines have been written by ASX in consultation with the regulators and market participants active in the bank accepted bill (bank bills) and negotiable certificates of deposit (NCDs) market.

Written submissions in response to the consultation paper are requested by Monday 7 August 2017.

05/06/17

On 5 June 2017, ASX released a consultation paper ASX Equity Market Closing Price and Settlement Price Determination. In response to a review following the ASX Trade outage in September 2016, the paper seeks feedback from stakeholders on closing price methodologies, particularly in market outage scenarios.

Written submissions in response to the consultation paper are requested by Friday 7 July 2017.

The outcome of the review (and a link to a more detailed explanation of the policy) was issued as a market notice on 5 April 2018.

22/05/17

On 22 May 2017, ASX released a Response to Consultation on OTC Rule and Handbook amendments related to ASX’s proposal to introduce a best practice OTC client clearing workflow for trade submission (Client Clearing API) and a multilateral compression service.

This document summarises feedback received from stakeholders on ASX’s March consultation paper and ASX’s response to that feedback.

The response document also includes revised and final Operating Rules that are subject to regulatory approval.

12/04/17

ASX has today released its Response to Consultation on Reverse Takeovers, together with Exposure Draft Listing Rule Amendments. These amendments will require bidders to obtain shareholder approval for reverse takeovers. ASX seeks written comments on the Exposure Draft Listing Rule Amendments by 26 May 2017.

ASX received 14 written submissions in response to the consultation paper Reverse Takeovers - Consultation on Shareholders Approval Requirements for Listed Company Mergers issued on 10 November 2015.  Of the submissions received, 1 was provided on a confidential basis.  The submissions that were made on a non-confidential basis are available at the links below.

• ACSI
• Allan Gray Contrarian Investing
• ASA
• Aust Super
• CGI Glass Lewis
• DLA Piper
• FSC
• Hostplus
• Herbert Smith Freehills
• Law Council of Australia
• NZ Super
• Ownership Matters
• PGGM Matters

10/04/17

On 10 April 2017, ASX released a Response to Consultation on OTC Rule and Handbook amendments related to Default Management processes.

This document summarises feedback received from stakeholders on ASX’s February consultation paper and ASX’s response to that feedback.

The response document also includes revised and final Operating Rules that are subject to regulatory approval.

31/03/17

On 31 March 2017, ASX released a consultation paper ASX OTC Interest Rate Derivatives Clearing: Consultation on OTC Rule and Handbook amendments related to the Client Clearing API and Multilateral Compression Service. ASX seeks feedback from OTC Participants in relation to ASX’s proposal to introduce a best practice OTC client clearing workflow for trade submission (Client Clearing API) and a multilateral compression service in the second quarter of 2017.

Written submissions in response to the consultation paper are requested by Friday 5 May 2017.

6/03/17

ASX has today released its response to consultation on the business requirements for the replacement of CHESS.

In September 2016, ASX commenced consultation on the replacement of CHESS with the release of the consultation paper
‘ASX’s Replacement of CHESS for Equity Post‑Trade Services: Business Requirements’.

The objective of the Consultation Paper was to provide the market with an update on ASX’s evaluation of Distributed Ledger Technology (DLT), set out ASX’s preliminary thinking on the business requirements for a system to replace CHESS, and to seek initial views from users on their business requirements.  ASX received 36 written submissions, including 23 that were provided on a confidential basis.  The submissions provided on a non‑confidential basis are available on the section of the website dedicated to CHESS Replacement.

13/02/17

On 13 February, ASX released a consultation paper, ASX OTC Interest Rate Derivatives Clearing: Consultation on OTC Rule and Handbook amendments related to Default Management processes. ASX seeks feedback from OTC Participants in relation to ASX’s proposal to amend the OTC Default Management Group framework to reflect feedback from OTC Participants and learnings from recent OTC default simulations.

Written submissions in response to the consultation paper are requested by Friday 10 March 2017.

18/01/17

ASX has today released its response to consultation on ASX Clear’s changes to the Participant Minimum Core Capital Requirements (MCCR) approach. ASX received responses (in the form of written submissions, emails and through bi-lateral meetings) from organisations and individuals in response to the consultation. All responses were provided on a confidential basis.

Also, accompanying the response to consultation is the Business Activities Return, which ASX intends to use to refine the MCCR approach, and which non-bank CPs are required to complete and return to the ASX by 17 February 2017.

22/12/16

This supplementary questionnaire relating to CHESS replacement was requested by the Code of Practice - Business Committee at the most recent committee meeting held in December 2016.  The questionnaire is largely modelled on Hong Kong Stock Exchange Group’s (HKEX) questionnaire regarding their planned upgrade of their post trade infrastructure. Some minor modifications have been made to make it more applicable to the Australian market.

Response to the questionnaire is optional and due by Tuesday the 14th February 2017. Any additional information gathered through this questionnaire will supplement information already received and being considered through written submissions and face to face discussions.

Completed questionnaires should be emailed to CHESSReplacement@asx.com.au.

All individual responses will be treated as confidential but may be aggregated for reporting purposes.

16/12/16

On 16 December 2016 ASX made a submission to a Treasury consultation on the proposed ASIC industry funding model. The submission made a number of observations on the impact of the new model on listed companies; market infrastructure providers; and equity and futures market participants including the effect this may have on the competitiveness of Australia’s financial services sector.

25/11/16

On 25 November, ASX released a consultation paper, ASX and ASX 24 Cancellation Policy Notification Timing Consultation Paper and Response to ETO Consultation. This paper seeks feedback from Participants on ASX’s proposal to increase the time to advise ASX by telephone of the initial cancellation request from 10 minutes to 30 minutes for all products.  The paper also provides a summary of submissions received and ASX’s proposed response to the ETO Trade Cancellation Consultation issued earlier in 2016.

Written submissions are requested by Friday 23 December 2016.

02/11/16

ASX has today released its Response to Consultation on updating ASX’s admission requirements for listed entities, together with the final Listing Rule and Guidance Note changes outlined in the Response to Consultation.  These Listing Rule and Guidance Note (GN) changes are due to come into effect on 19 December 2016:

• Final Listing Rule changes
• GN 1 Applying for Admission – ASX Listings
• GN 4 Foreign Entities Listing on ASX
• GN 12 Significant Changes to Activities
• GN 29 Applying for Admission – ASX Debt Listings
• GN 30 Applying for Quotation of Additional Securities.

ASX received 56 written submissions from organisations and individuals in response to the consultation paper Updating ASX’s admission requirements for listed entities issued on 12 May 2016.  Of the submissions received, 29 were provided on a confidential basis.  The submissions that were made on a non-confidential basis are available at the links below.

ASX also received in excess of 2,000 ‘form’ letters and emails from retail investors as part of a sponsored online campaign in relation to the proposed changes to the minimum spread requirements for listing.  An example of the ‘form’ letters and emails is available here.

ASX is also publishing a package of changes to the following GNs:

• GN 5 CHESS Depositary Interests (CDIs) and GN 28 Reasonable Fees for Activities Covered by Listing Rule 8.14.1 – complete re-writes as part of ASX’s Guidance Note refresh project
• GN 8 Continuous Disclosure: Listing Rules 3.1 – 3.1B – minor updates to the sections on price query and aware letters
• GN 9 Disclosure of Corporate Governance Practices – amendments to clarify the role of the Appendix 4G and to address some emerging issues around director skill matrices and sustainability disclosures
• GN 23 Quarterly Cash Flow Reports – expanded to cover Appendix 5Bs as well as Appendix 4Cs and to provide additional guidance on ASX enforcement practices
• GN 27 Trading Policies – minor consequential amendments flowing from the admission rule changes
• GN 33 Removal of Entities from the ASX Official List – amendments to clarify the conditions ASX will impose when agreeing to allow an entity to resign from the official list, to remove the now superseded transitional provisions for the long term suspended entity policy, and to expand the guidance on when ASX may grant an extension to the 3 year deadline for automatic removal of a long term suspended entity.

All of the GNs are marked up to show the changes to the current version, apart from GN 5 and GN 28, which are complete re-writes.

22/09/16

On 22 September, ASX released a consultation paper, Austraclear: New framework to facilitate compliance with the Common Reporting Standard. The consultation paper outlines ASX’s proposal to support Austraclear’s compliance with the Common Reporting Standard by introducing new eligibility criteria for Participants that hold Deposited Securities in the Austraclear System. ASX seeks feedback from stakeholders on the proposed eligibility criteria.

Written submissions in response to the consultation paper are requested by Friday 4 November 2016.

19/09/16

On 19 September 2016, ASX released a consultation paper ‘ASX’s Replacement of CHESS for Equity Post-Trade Services: business requirements’.  The consultation paper outlines ASX’s plans to introduce ISO 20022 messaging standards with the system that replaces CHESS.  It also seeks feedback on a suite of enhancements to current functionality that could be introduced as part of the development of a replacement system.

ASX invites stakeholders to provide feedback on their requirements for the system that replaces CHESS, including the relative importance of existing CHESS functions that could be carried forward and the existing CHESS functions or processes that may not meet their needs.

Written submissions in response to the consultation paper are due by Friday, 28 October 2016.

22/08/16

On 22 August, ASX released a consultation paper, ASX OTC Interest Rate Derivatives Clearing. This paper seeks feedback from OTC Participants on: (i) ASX’s proposal to expand the product coverage of the OTC Clearing Service to include Asset Swaps and BBSW vs AONIA Basis Swaps (ii) whether ASX should amend its OTC Rules to confirm that OTC Open Contracts are ‘settled to market’ rather than ‘collateralised to market’ by variation margin payments.

Written submissions are requested by Friday 16 September 2016.

12/08/16

On 12 August 2016 ASX made a submission to ASIC CP262: Remaking and repealing ASIC class orders on markets and securities. The submission supported ASIC’s proposals to remake a number of class orders that reduce compliance costs for participants in public markets.

05/08/16

On 5 August 2016 ASX made a submission to the Productivity Commission’s Inquiry into Data Availability and Use. The submission provided background on ASX’s data services and a few high-level perspectives on some of the matters raised in the Issues Paper, focussing particularly on the advantages to be gained by commercial-led solutions.

30/06/16

On 30 June 2016, ASX released the consultation paper,

Changes to Clearing Participant Minimum Core Capital Requirements Approach - This paper seeks views on ASX’s proposed change in approach to determining Participant minimum core capital requirements to more fully reflect the complexity inherent within a Participant’s business.

Under the changes being considered, ASX would retain the current base core capital requirement of $5m, $10m, $15m and $20m (depending on number of market participants the Participant clears for), and would introduce additional core capital requirements dependant on whether the participant undertakes any client short ETO activity, own account business in financial products and/or non-ASX business. An additional minimum core capital requirement of $2.5m or $5m would apply for each such activity undertaken by that Participant depending on the level of such activity.

Written submissions are requested by Thursday, 11 August 2016.

27/06/16

ASX today announced that it had finalised its amendments to the Appendix 4C and Appendix 5B quarterly cash flow reports following its review of the submissions received on its consultation paper dated 26 February 2016. Copies of the final reports are available on the ASX website at the following links: Appendix 4C and Appendix 5B.

ASX received the following non-confidential submissions in response to its consultation paper:

Botswana Metals Ltd
Kibaran Resouces Ltd

ASX made some changes to the consultation versions of the Appendix 4C and Appendix 5B in response to these submissions, including:

• re-structuring the entries in item 1.2 of the Appendix 4C to be more consistent with the corresponding entries in the Appendix 5B
• adding a new item 1.7 in the Appendix 4C - “Government grants and tax incentives”
• adding a new item 1.7 in the Appendix 5B - “Research and development refunds”
• adding a new item 3.4 in both Appendix 4C and Appendix 5B - “Transaction costs related to issues of shares, convertible notes or options”
• recasting section 4 of the Appendix 4C and Appendix 5B to make its relationship to the preceding sections clearer
• adding a new item 9.7 in the Appendix 4C and item 9.6 in the Appendix 5B - “Other (provide details if material)”, and
• re-structuring section 9 of the Appendix 4C to be consistent with the changes made to item 1.2.

Subject to the receipt of the necessary regulatory approvals, ASX anticipates that the new Appendix 4C and Appendix 5B will be incorporated into the Listing Rules and come into effect on 1 September 2016. The new forms should be used for all quarterly cash flow reports for quarters ending on or after 30 September 2016.

31/05/16

On 31 May 2016, ASX released a response to consultation feedback in relation to the method used to determine ASX Settlement ‘non-business’ days. ASX proposed to align its methodology with The Reserve Bank of Australia’s Reserve Bank Information and Transfer System (RITS) availability.

• ASX Settlement Non Business Days Market Response

The consultation feedback provided strong support for ASX Settlement ceasing to observe local public holidays in NSW and Victoria with the majority of respondents citing the benefits of alignment with RITS and other securities settlement facilities in addition to improvements relating to funding liquidity, risk concentration and settlement availability.

ASX received 17 written submissions including 3 non-confidential submissions. The non-confidential submissions are available below:

• ACSA
• Governance Institute of Australia
• Pattersons Securities Limited

12/05/16

ASX has today released a consultation paper on proposed changes to its requirements for admission to the ASX official list. The changes are designed to maintain and strengthen the reputation of ASX as a market of quality and integrity.

The consultation paper and attachments are available here:

Consultation Paper
Attachment A - Proposed Listing Rule Changes 
Attachment B - Proposed Changes to Guidance Note 1
Attachment C - Proposed Changes to Guidance Note 4  
Attachment D - Proposed Changes to Guidance Note 12 
Attachment E - Proposed Changes to Guidance Note 29
Attachment F - Proposed Changes to Guidance Note 30

Written submissions are requested by Friday 24 June 2016. A form to assist respondents to answer the consultation questions can be downloaded here.

01/04/16

On 1 April 2016, ASX released a Response to Consultation: Central Counterparty Recovery - Response to Consultation Feedback on Exposure Draft Rules for Interim Replenishment of Default Funds

This document summarises feedback received from stakeholders on ASX’s December 2015 consultation paper and ASX’s response to that feedback. ASX received 7 written responses. The non-confidential submissions are available below:

• ISDA
• JP Morgan

The response document also includes revised and final Operating Rules that are subject to regulatory approval.

23/03/16

In response to requests from derivatives trading participants ASX is reviewing the existing regime for Exchange Traded Options (ETO) trade cancellations. ASX is seeking feedback from all ETO users on time limits participants have to notify ASX of errors and the possible introduction of a significant size threshold for an error to be considered as extreme.

Written submissions are requested by Friday, 29 April 2016.

01/03/16

On 1 March 2016, ASX released a consultation paper ASX Settlement Non-Business Days Policy Review. The paper seeks feedback in relation to the method used to determine ASX Settlement ‘non-business’ days whereby ASX is inclined to align its methodology with The Reserve Bank of Australia’s Reserve Bank Information and Transfer System (RITS) availability. The practical impact of such a change would see a small reduction in the number of ASX Settlement Non-Business days.

Written submissions are requested by Monday, 11 April 2016.

29/02/16

On 29 February 2016, ASX released a Review of ASX Trade Acceptance Service Legal Terms.  The Legal Terms for the Trade Acceptance Service came into effect with the establishment of the service on 31 October 2011, with a term of five years.  The Legal Terms are due to expire on 31 October 2016.  The Legal Terms provide that a review be commenced twelve months prior to the expiry of the Legal Terms and that the review is published within four months of its commencement.

The Review has not identified a need for significant changes to the Legal Terms.  Accordingly, the Trade Acceptance Service will continue to be made available on substantially the same terms for another five year term.  Some relatively minor changes will be implemented to update and simplify the drafting, and to remove a quarterly reporting requirement to reduce the compliance burden for Approved Market Operators.  The proposed changes are explained in the Review Paper.

26/02/16

On 26 February, ASX released a consultation paper Proposed revisions to ASX Listing Rules Appendices 4C and 5B. The paper seeks feedback on proposed changes to the quarterly cash flow statements in Appendices 4C and 5B to the ASX Listing Rules.

Start-up entities that are not mining exploration entities are generally required to report quarterly cash flow information in an Appendix 4C, while mining exploration entities are required to report quarterly cash flow information in an Appendix 5B. The two Appendices are intended to reflect the cash flow statement normally included in an entity’s annual and half-yearly financial statements, as per current accounting standards, but on a quarterly basis and highlighting and expanding upon certain aspects that are deemed particularly relevant for investors (such as a more detailed breakdown of payments made to or received from related parties).

Appendices 4C and 5B were implemented and have been amended over a number of years independently of each other, which has created some inconsistencies between them. They have also not kept pace with current accounting standards.

The changes proposed to the Appendices seek to address these issues and also to enhance the format of the two Appendices to make them more user friendly, both from the point of view of issuers and investors. This includes adopting a new, more intuitive, numbering system for the different sections of the Appendices and changing the order of some of those sections.
Written submissions are requested by Friday 29 April 2016.

24/02/16

On 24 February, ASX released a consultation paper, Clearing Participant Liquidity Risk Management Frameworks. This paper seeks feedback on the proposed contents of a guidance note for Clearing Participants' liquidity risk management frameworks. This guidance note is intended  to establish a minimum “baseline” standard for Clearing Participants' liquidity management.

Written submissions are requested by Friday 29 April 2016.

23/12/15

On 23 December 2015, ASX released a Consultation Paper Facilitating Equity Sector Futures Roll Business on ASX Trade 24.

The paper seeks customer feedback on options to enhance the roll market structure for equity sector futures contracts to encourage greater liquidity and lower the costs with rolling contracts at expiry.

Written submissions are requested by Friday 29 January 2016.

4/12/15

On 4 December 2015, ASX released a Consultation Paper Central Counterparty Recovery – Consultation on Exposure Draft Rules for Interim Replenishment of Default Funds

This document  seeks feedback on Exposure Draft Rules to facilitate more rapid replenishment of the default funds of ASX Clear and ASX Clear (Futures) if they are depleted as a result of a participant default loss.

The Exposure Draft Rules are available at ASX Recovery Rulebook– Applicable to ASX Clear and ASX Clear (Futures)

10/11/15

On 10 November, ASX released a consultation paper: Reverse Takeovers – Consultation on Shareholder Approval Requirements for Listed Company Mergers.

The term “reverse takeover” refers to a takeover where a bidder acquires a larger target company offering its shares as consideration. This typically results in the target’s shareholders between them acquiring majority ownership of the bidder, the reverse of what would ordinarily happen in a “standard” takeover, where the bidder and its shareholders acquire majority ownership of the target.

ASX has received representations from some investor and corporate governance groups that there is a gap in the regulatory framework for reverse takeovers in Australia because bidder shareholder approval is not required for a reverse takeover and therefore bidders have no say in whether the transaction proceeds even though they are effectively in the position of “target” shareholders. By contrast, the target shareholders do have a say through their right to accept or reject the offer (in the case of an off-market takeover offer) or to vote on the scheme proposal (in the case of a scheme of arrangement), even though they are effectively in the position of “bidder” shareholders.

Through this Consultation Paper, ASX is seeking feedback from stakeholders on whether the listing rules should be amended to require bidder shareholder approval for reverse takeovers.

Written submissions are requested by Thursday 17 December 2015.

12/10/15

On 12 October 2015, ASX released its review of the operation of listing rule 7.1A. The review includes discussion of changes that ASX is proposing to make to listing rule 7.1A and related rules, as well as changes that have been proposed to ASX by external stakeholders. ASX invites comments from all stakeholders on those proposals.

Listing rule 7.1A was introduced in 2012. It applies to entities which are not included in the S&P/ASX300 index and which have a market capitalisation equal to or less than $300 million. It allows those entities to obtain a 12 month shareholder mandate to issue up to 10% of issued capital without further shareholder approval, in addition to the 15% permitted under listing rule 7.1.

Comments on the proposals are requested by Monday 9 November 2015.

02/10/15

On 27 May 2015, ASX released a consultation paper seeking feedback on the proposed rule changes required to implement a trade date plus two business days (T+2) settlement cycle for cash market trades in Australia in March 2016 and a consequential reduction in the ex-period for corporate actions.  Feedback was also sought in relation to the transitional arrangements being put in place to manage implementation of the change from a trade date plus three business day (T+3) settlement cycle.

ASX received the following submissions in response to this consultation paper:

• ACSA
• Computershare

17/08/15

On 17 August 2015, ASX released a Response to Consultation: Central Counterparty Recovery – Response to Consultation Feedback on exposure draft rules to implement loss allocation and replenishment tools for clearing participant default and non-default loss

This document summarises feedback received from stakeholders on ASX’s April 2015 consultation paper and ASX’s response to that feedback. ASX received 2 written responses. The non-confidential submission is available below:

• JP Morgan

The response document also includes revised and final Operating Rules that are subject to regulatory approval.

12/08/15

On 11 March 2015, ASX released a consultation paper seeking comments on a package of proposed amendments to the ASX Listing Rules to facilitate dual listings by New Zealand companies.

ASX received the following submissions in response to this consultation paper:

AFMA 
APX 
Australia NZ Leadership Forum
Chapman Tripp 
DLA Piper
First NZ Capital
Gadens Lawyers
Heartland New Zealand Limited
Law Council of Australia
Listed Companies Association Inc (NZ)
Metlifecare Limited
Minter Ellison and Minter Ellison Rudd Watts
Nuplex Industries Limited
Orion Health Group Limited
Spark New Zealand Limited

During the regulatory review process, a number of changes were made to the rule amendment package. These changes, and the rule amendment package that has been submitted for final regulatory approval, are set out in ASX's Response to Consultation.

22/06/15

Earlier this year, ASX issued a consultation paper on proposed changes to Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 -3.1B (GN 8) expanding the guidance on earnings surprises, publication of analyst forecasts and consensus estimates, and investor briefings.

On 22 June 2015, ASX released a detailed consultation response, along with the final version of GN 8 (Attachment A), a mark-up comparing the final version to the draft version of GN 8 issued with ASX’s consultation paper (Attachment B), a mark-up comparing the final version to the current (pre-consultation) version of GN 8 (Attachment C), and a mark-up of ASX’s Abridged Guide to Continuous Disclosure reflecting the changes it has made to GN 8 (Attachment D).

ASX intends to publish the final form of GN 8 on 1 July 2015. It will be available on and from that date on the “Rules, guidance notes and waivers” page on the ASX website.

The final form of ASX’s Abridged Guide to Continuous Disclosure can be downloaded from the ASX Compliance “downloads” page on the ASX website.

27/05/15

On 27 May 2015, ASX released a consultation paper ‘Implementing a T+2 Settlement Cycle for the Cash Market: Draft Rule Amendments’.

Through this consultation, ASX is seeking feedback on the proposed rule changes required to implement a trade date plus two business days (T+2) settlement cycle for cash market trades in Australia in March 2016 and a consequential reduction in the ex period for corporate actions.  Feedback is also sought in relation to the transitional arrangements being put in place to manage implementation of the change from a trade date plus three business day (T+3) settlement cycle.

This consultation follows on from earlier consultation in February 2014 on a move to a T+2 settlement cycle.

Written submissions in response to this consultation paper are due by 8 July 2015.

08/05/15

On 8 May 2015 ASX made a submission to the Council of Financial Regulators’ on the licensing regime for overseas clearing and settlement facilities. The submission argued that a regulatory framework should ensure that facilities providing services to Australian investors and/or to systemically significant financial markets are governed by Australian licensing. Exceptions to this should only be contemplated where the market/products they are servicing are not now, or expected in the future, to be systemically significant. Protecting the interests of Australian users of the overseas facility and maintaining the ability of domestic regulators to have appropriate controls over systemically important markets should continue to be paramount factors in the Minister’s decision on approving a licence application, the nature of that licence and any conditions attached to it.

30/04/15

On 30 April 2015 ASX made a submission to the Reserve Bank of Australia on the central clearing of repurchase agreements (repos) in Australia. ASX believes that there are potentially significant benefits to be gained from central clearing, but in the short term, the likelihood of such benefits being realised is limited under the current structure of the repo market.  An industry design study could be established to explore in more detail the costs and benefits of the central clearing of repo transactions and the structural changes to the market that would be a necessary precursor.

28/04/15

On 6 March 2015 ASX issued a consultation paper seeking comments from listed entities and other stakeholders on proposed changes to ASX Listing Rules Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 -3.1B.

ASX received the following seven submissions in response to this consultation paper:

• AICD
• AIRA
• BHP Billiton
• Governance Institute of Australia
• Group of 100
• Johnson Winter & Slattery
• Law Council of Australia (Business Law Section)
• Telstra
• University of Sydney

21/04/15

On 21 April 2015, ASX released a Consultation Paper Central Counterparty Recovery – Consultation on Exposure Draft Rules to Implement loss allocation and replenishment tools for Clearing Participant default and non-default loss

This document summarises feedback received from stakeholders on ASX’s October 2014 consultation paper and ASX’s response to that feedback. ASX received 13 written responses to the October 2014 Consultation Paper. The non-confidential submissions are available below:

• AFMA
• Chi-X
• ISDA

This document  also seeks feedback on exposure draft rules to implement new loss allocation and replenishment tools for both participant default loss and non-default loss following the October 2014 Consultation.

The Exposure Draft Rules are available at:

• ASX Recovery Rulebook – Applicable to ASX Clear and ASX Clear (Futures)
• ASX Recovery Handbook – Applicable to ASX Clear and ASX Clear (Futures)
• ASX Clear Operating Rules – Consequential amendments
• ASX Clear (Futures) Operating Rules – Consequential amendments

27/03/15

On 27 March 2015 ASX made a submission to the Council of Financial Regulators’ review of competition in clearing Australian cash equities. A single post-trade infrastructure remains the most efficient structure for a market the size of Australia. ASX proposes that the current effective, industry-led regulatory settings be maintained and that the moratorium on competition in cash equities clearing should be extended for five years. This would give ASX the certainty it needs to commit to a significant investment in Australia’s cash equities post-trade infrastructure, including the replacement of CHESS. This would be accompanied by changes to ASX Clear’s fees and a strengthening the operation of the Code of Practice. These changes will deliver outcomes that are consistent with a competitive market and that are in line with best practice regulation.

27/03/15

On 27 March 2015 ASX made a submission to the Reserve Bank of Australia’s consultation on a resolution regime for Financial Market Infrastructures. ASX strongly supported implementation of a FMI resolution regime as it is critical to maintaining and enhancing Australia’s reputation for safe and well regulated markets.

27/03/15

On 27 March 2015 ASX made a submission in response to the Treasurer’s call for consultation around the recommendations of the Financial System Inquiry. ASX focused on the need to develop regulatory frameworks in Australia that facilitate the growth of the domestic corporate bond and crowdfunding markets. In addition, there was support for a range of sensible reforms to improve the operation, and protect the stability, of the financial system.

11/03/15

On 11 March 2015, ASX released a consultation paper Facilitating Dual Listings by New Zealand Companies – Updating ASX’s Foreign Exempt Listing Rules.

ASX is proposing to facilitate the dual listing of entities that are listed on the main board of NZX, by exempting those entities from the additional eligibility criteria applicable to ASX Foreign Exempt Listings. The changes will make it easier for NZX main board-listed entities to dual list on ASX by removing a dual compliance burden.

Comments are due by Monday 20 April 2015.

10/03/15

On 10 March 2015, ASX released a Response to Consultation on proposed amendments to the Operating Rules of the ASX Group central counterparties, ASX Clear and ASX Clear (Futures) (ASX CCPs), which will enable excess customer collateral for derivatives to be held directly with the ASX CCPs and attributed to an individual client account. The Response document summarises the feedback received from stakeholders on ASX’s December 2014 consultation paper and ASX’s response to that feedback. The Response document also includes revised and final Operating Rules that are subject to regulatory clearance.

06/03/15

On 6 March 2015, ASX published a consultation paper seeking comments from listed entities and other stakeholders on proposed changes to ASX Listing Rules Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 - 3.1B. The changes expand the guidance given in relation to analyst and investor briefings, analyst forecasts, consensus estimates and earnings surprises.

Comments are due by Friday 24 April 2015.

16/02/15

On 16 February 2015, ASX has released a consultation paper entitled "Reducing Red Tape:  Results of Consultation Process and Invitation to Comment on Additional Rule and Procedure Changes, Guidance Note 1 Admission as a Participant and New Participant Application Form".

The consultation paper summarises and responds to the submissions that ASX received in relation to the Reducing Red Tape consultation package ASX released on 31 October 2014.

The consultation paper attaches the final form of the Rule and Procedure amendments for which ASX will now be seeking regulatory approval (Annexure A), subject to any further feedback ASX may receive on some new Rule and Procedure amendments ASX has added to the package.  It also attaches the final form of ASX's proposed Guidance Note 9 Offshoring and Outsourcing (Annexure B).

ASX is now inviting comments from participants, their advisers and other stakeholders on:

• some additional Rule and Procedure changes identified in the consultation paper intended to further reduce red tape for participants;
• drafts of a new Guidance Note 1 Admission as a Participant for each of the ASX and ASX 24 markets and the ASX Clear, ASX Clear (Futures) and ASX Settlement facilities (Annexures C, D, E, F and G respectively); and
• a draft new participant admission application form for these markets and facilities (Annexure H).

Comments on these materials are due by 20 March 2015.

15/12/14

On 15 December 2014, ASX released a consultation paper Enhanced Derivatives Account Segregation and Portability – Consultation on amendments to the Operating Rules of ASX Clear and ASX Clear (Futures).

Through this consultation, ASX is seeking feedback from Clearing Participants and their Clients on ASX’s proposed amendments to the Operating Rules of the ASX Group central counterparties, ASX Clear and ASX Clear (Futures) (ASX CCPs), which will enable excess customer collateral for derivatives to be held directly with the ASX CCPs and attributed to an individual client account. ASX is introducing the enhancements to comply with regulatory guidance of the Reserve Bank of Australia, so that the ASX CCPs can gain recognition in the European Union.

Submissions close on 6 February 2015.

03/12/14

On 3 December 2014, ASX released a consultation paper Code of Practice for Clearing and Settlement of Cash Equities in Australia – Proposed Operational Improvements.

Through this consultation, ASX is seeking feedback on the proposed operational improvements to the Code of Practice ahead of any review of market structure for cash market clearing by regulators and Government.

Written submissions in response to this consultation paper are due by Friday, 27 February 2015. For your convenience, feedback on the proposed operational improvements may be provided by completing Appendix 3 of the consultation paper.

31/10/14

On 31 October 2014, ASX released a consultation paper Reducing red tape – proposed amendments to ASX’s admission and notification requirements.

ASX is proposing to standardise and streamline the admission and notification requirements for the ASX and ASX 24 markets and the clearing and settlement facilities that service those markets (ASX Clear, ASX Clear (Futures) and ASX Settlement). This will make it easier, faster and cheaper for organisations to become participants in ASX’s markets and facilities, encouraging more organisations to participate in Australia’s financial markets and bringing added strength, liquidity and diversity to them. It will also reduce the ongoing compliance overhead for participants in those markets and facilities.

The consultation paper and annexures can be downloaded from:

Reducing Red Tape consultation paper
Annexure A
Annexures B-M
Annexure N

ASX received the following non-confidential submissions in relation to the consultation paper:

Stockbrokers Association of Australia
Pajeska Group Pty Ltd
Broadridge (Australia) Pty Ltd

02/10/14

On 2 October 2014, ASX released a consultation paper Central Counterparty Recovery: Uncovered loss allocation and replenishment tools for clearing participant default

Through this consultation, ASX is seeking feedback on proposals to introduce new powers under the operating rules of ASX Clear and ASX Clear (Futures) to address fully any credit losses or liquidity shortfalls they may face as a result of clearing participant default, and to replenish their default funds following such events.

Written submissions in response to this consultation paper are due by Friday 7 November 2014.

12/09/14

On 12 September 2014 ASX released a consultation paper seeking feedback on a proposed new ASX Listing Rules Guidance Note 34 Naming conventions for debt and hybrid securities.
ASX is proposing to introduce naming conventions for debt and hybrid securities quoted on the ASX market to assist retail investors to understand what it is they are buying when they purchase these types of securities.
If adopted, the proposed new Guidance Note will apply to securities quoted on ASX on or after the date the new Guidance Note comes into effect. It will not operate retrospectively in relation to securities already quoted on ASX prior to that date.

26/08/14

On 26 August 2014 ASX lodged its submission in response to the interim report of the Financial System Inquiry. ASX’s submission focuses on four key areas: funding (equity and debt) economic activity; competition in the financial system; appropriate regulatory arrangements; and international integration. It proposes that the growth of a domestic corporate bond market could be enhanced by the removal of the requirement for a prospectus to accompany the issue of ‘vanilla’ corporate bonds to retail investors. Australia’s robust continuous disclosure regime (through the issue of a ‘cleansing notice’) combined with a term sheet with key features of the bond issue would provide investors with the necessary information to make an informed investment decision.

26/08/14

On 26 August 2014, ASX released a response to market entitled ASX Exchange Traded Options: Response to Consultation on Automatic-Exercise on Expiry Date & Approach for Exercise Errors which examined the introduction of automatic exercise as the clearing house default position for all in-the-money cash settled and deliverable option contracts on expiry date. The consultation paper also sought feedback on ASX Clear’s current approach in circumstances involving exercise errors where an option contract is inadvertently exercised, or where there has been an inadvertent failure to exercise an option contract.

ASX received a total of 18 written submissions, including 15 confidential submissions. The submissions provided on a non confidential basis are available below:

Australian Financial Markets Association
IMC Financial Markets
Optiver Australia

01/08/14

On 1 August 2014, ASX released a consultation paper ‘Dilution Factor Calculation for Special Dividends’. Through this consultation, ASX is seeking feedback on the proposal to change the methodology used to calculate a dilution factor for special dividends and distributions.
Submissions closed on 12 September 2014.

ASX received a total of 3 written submissions, including 1 confidential submission. The submissions provided on a non-confidential basis are available below:

Westpac
Suncorp

The change proposed in the consultation will be effective from 3 November 2014.

14/07/14

On 14 July 2014, ASX released a consultation paper 'Derivatives Account Segregation and Portability – Enhanced Client Protection Structures'.

Through this consultation, ASX is seeking feedback on the design of an enhanced client account structure which is intended to be implemented across the ASX Clear (Futures) Client Clearing Service for ASX 24 Exchange Traded Derivatives and OTC Interest Rate Derivatives. Potential enhancements include the protection of excess client collateral and the tracking of client non-cash collateral.

Submissions close on 22 August 2014.

01/07/14

Consistent with its Code of Practice commitments, ASX consulted in H1 2014 on enhancements to its service level commitments and Information Handling Standards for the Trade Acceptance Service and the Settlement Facilitation Service. In response to the Consultation Paper Clearing and Settlement Services for Approved Market Operators and Approved Listing Market Operators: enhanced service levels and information handling standards, ASX received written submissions from Chi X Australia (Chi X) and Asia Pacific Stock Exchange (APX). The Chi X submission is available here and the APX submission is available here.

The outcome from the consultation process and ASX’s response to consultation feedback is available here.

24/06/14

On 24 June 2014 ASX lodged its submission to the Government’s Competition Policy Review. The submission notes that a modern competition policy needs to look outward, supporting market structures and incentives for businesses to compete globally from Australia, as well as delivering efficiencies to, and protecting, consumers and small business within Australia. The policy now needs to balance the focus on competition within Australia with a greater focus on the competitiveness of Australia.

15/05/14

The consultation period for submissions in response to the ASX Consultation Paper ‘Shortening the Settlement Cycle in Australia: Transitioning to T+2 for Cash Equities’ closed on 7 April 2014. ASX received 23 written submissions. Eleven submissions were provided on a confidential basis. The consultation feedback will be considered by the advisory forum (the Forum) established by ASX under its Code of Practice for Clearing and Settlement of Cash Equities at its 23 June 2014. The submissions provided on a non confidential basis are available below.

06/05/14

On 6 May 2014, ASX issued the final version of its governance-related Listing Rule amendments. ASX also issued:

• a Supplementary Consultation Response outlining the changes it has made to its proposed governance-related Listing Rule amendments, which were the subject of an initial consultation in August-November 2013 and a supplementary consultation in February-March 2014
• a mark-up identifying the changes made in the final version compared to the proposed changes issued with its supplementary consultation paper in February 2014

The changes to the ASX Listing Rules released with the supplementary consultation response are intended to come into effect on 1 July 2014, subject to receipt of the necessary regulatory approvals under the Corporations Act.

04/04/14

On 4 April 2014, ASX released a consultation paper ASX exchange-traded options: Consultation on automatic exercise on expiry date and approach for exercise errors.

ASX is consulting market participants, clearing participants and interested stakeholders on the ASX Clear procedural framework for the automatic exercise of in-the-money cash settled and deliverable option contracts. The consultation also seeks feedback on ASX Clear’s approach in circumstances where an option contract is inadvertently exercised, or where there has been a failure to exercise an option contract when the intention was to do so.

The purpose of this consultation is to explore ways to improve operational risk management and efficiency for its customers and align its procedures with global best practice.

Written submissions in response to this consultation paper are due by Monday, 19 May 2014.

31/03/14

25/02/14

On 25 February 2014, ASX released a consultation paper ‘Shortening the Settlement Cycle in Australia: Transitioning to T+2 for Cash Equities’.

Through this consultation, ASX is seeking feedback on the benefits, industry readiness, a feasible timetable for implementation and the key preconditions which will need to be in place to transition to T+2 for cash equities in Australia.

Written submissions in response to this consultation paper are due by 7 April 2014.

21/02/14

ASX issued a supplementary consultation paper inviting comments from listed entities, their advisers and other stakeholders on modifications to the governance-related Listing Rule amendments that it consulted upon in August-November 2013. The supplementary consultation paper is accompanied by a document with the modified changes to the ASX Listing Rules now proposed by ASX, together with a mark-up identifying how the modified rule changes vary from those originally proposed.

In response to its supplementary consultation, ASX received 9 submissions including two confidential submissions. Submissions provided on a non-confidential basis are available below:

• AMP Ltd
• Australian Institute of Company Directors
• Commonwealth Bank
• Governance Institute of Australia
• Herbert Smith Freehills
• Law Council of Australia
• Telstra Corporation Limited

07/02/14

On 7 February 2014, ASX made a submission to Treasury on Employee share schemes and startups. The submission supports a change to the tax arrangements to facilitate the establishment of employee share schemes, recognising that they are a way for cash-poor early-stage companies to attract and compensate talented staff in place of high salaries.

06/02/14

mFund – Rules and Procedures

The Rules for the mFund Settlement Service now have regulatory clearance and will become effective on a date to be advised. The Rules and Procedures are provided for the information of participants and other mFund users.

ASX Operating Rules amendments
ASX Settlement Rules amendments
ASX Operating Rules Procedures amendments
ASX Settlement Rules Procedures amendments

23/01/14

On 23 January 2014, ASX released a consultation paper entitled Clearing and Settlement Services for Approved Market Operators and Approved Listing Market Operators: enhanced service levels and information handling standards.

In the consultation paper, ASX proposes to enhance its service level commitments and operational and technical standards for the Trade Acceptance Service and the Settlement Facilitation Service. ASX also proposes to update the information handling standards applicable to the provision of these services.

Written submissions in response to this consultation paper are due by 14 March 2014.

02/01/14

On 2 January 2014, ASX released a Response to Consultation Feedback on proposed changes to the methodology for allocating ISINs issued by ASX over listed equity and other products, through its role as a National Numbering Agency. The consultation paper was released on 16/09/13 (see 2013 Consultation Papers).

ASX received a total of three written submissions, including two confidential submissions. The submission provided on a non confidential basis is available here:

• Australian Custodial Services Association (ACSA)

16/12/13

In response to an ASX consultation paper released on 16 August 2013 on the proposed governance related amendments to the ASX Listing Rules and Guidance Note 9, ASX received 24 written submissions. Three of these submissions were provided on a confidential basis. Of the non confidential submissions, 16 were joint submissions responding to the proposed amendments to the ASX Listing Rules and the proposed amendments to the Corporate Governance Principles and Recommendations, which were released by the ASX Corporate Governance Council on 16 August 2013.

ASX is considering the public submissions received on the proposed governance-related changes to its Listing Rules and, consequently, will defer the originally planned start date of 1 January 2014 for some of those rules.

The proposed changes being deferred include the introduction of a new Listing Rule 3.19B, requiring the disclosure of on-market purchases of securities on behalf of employees or directors or their related parties under an employee incentive scheme. They also include amendments to a number of Listing Rules that currently apply to “associates”, extending their reach to “related parties”.

The submissions provided on a non confidential basis are available below:

The submissions provided to the ASX Corporate Governance Council in relation to the proposed changes to the Corporate Governance Principles and Recommendations are available here.

12/12/13

On 12 December 2013, ASX released a Response to Consultation paper on Draft Operating Rules for its OTC Interest Rate Derivatives and ASX 24 Exchange Traded Derivatives Client Clearing Service.

The Response document summarises the feedback received from stakeholders on ASX’s August 2013 and October 2013 consultation papers and sets out ASX’s responses to that feedback.

26/11/13

As outlined in ASX Clearing Corporation Notice 064/12 dated 3 December 2012 ASX Clear informed the market that the proposal to increase the minimum core capital requirement for Direct Participants from $5 million to $10 million had been deferred until 1 January 2015 at the earliest. The notice also advised ASX Clear’s intention to consult on this in 2013.

ASX Clear has now issued a consultation paper on the minimum core capital requirements for ASX Clear Participants that are subject to the risk based capital requirements. In addition the paper also discusses the possibility of a tiered minimum core capital requirement for General Participants. Submissions closed on 8 November 2013.

Ten submissions were received, including four confidential submissions. The six public submissions are:

• Bell Potter Securities
• Morgans Financial
• Morrison Securities
• OpenMarkets Australia
• Third Party Platform
• WealthHub Securities

Having considered the submissions received, ASX Clear has determined to keep the minimum core capital requirement for Direct Participants at $5 million and to imlement a tiered minimum core capital requirement for General Participants (with further consideration to be given to the actual tiering structure to be implemented).

04/11/13

On 4 November 2013, ASX released a consultation paper entitled Timetable for Dividends and Distributions: A proposal to prescribe the last election date for a dividend reinvestment plan following the record date.

The consultation paper sets out a proposal to amend the timetable for dividends and distributions in Appendix 6A of the Listing Rules to introduce a requirement for the last election date for a dividend reinvestment plan or a distribution reinvestment plan offered on a dividend or a distribution to be set no earlier than the business day following the record date for the dividend or distribution.

Written submissions in response to this consultation paper are due by 29 November 2013.

17/10/13

On 17 October, ASX released the second of two Consultation Papers on its Client Clearing Service for ASX 24 Exchange Traded Derivatives and OTC Interest Rate Derivatives, focusing on default management.

ASX is inviting comments on the draft operating rules from all interested parties prior to formal submission of the rules to regulators for clearance.

Submissions close on 15 November 2013.

16/09/13

On 16 September 2013 ASX released a consultation paper on International Securities Identification Numbers: Removing the ASX Code which proposes changes to the methodology for allocating ISINs issued by ASX over listed equity and other products, through its role as a National Numbering Agency.

ASX is inviting interested parties to provide comment by 31 October 2013.

12/09/13

ASX has today issued a consultation paper seeking comments on a proposal to automatically de-list long-term suspended entities if their securities have been suspended from trading for a continuous period of three years.

The consultation paper focuses on a proposed new Guidance Note 33 Removal of entities from the official list, which deals with when and how ASX may de-list an entity, either at its request or at the instigation of ASX.

ASX's consultation package includes:

• a consultation paper entitled Proposed Policy Changes: Long-term suspended entities (Guidance Note 33);
• a draft of Guidance Note 33.

ASX is inviting comments from all interested stakeholders on the consultation materials. Submissions are due by Friday, 1 November 2013.

28/08/13

On 28 August 2013, ASX released the first of two Consultation Papers on its Client Clearing Service for ASX 24 Exchange Traded Derivatives and OTC Interest Rate Derivatives.

ASX is inviting comments on the draft operating rules for the Client Clearing Service from all interested parties prior to formal submission of the rules to regulators for clearance.

Submissions close on 2 October 2013.

28/08/13

On 28 August 2013, ASX released a consultation paper on Changes to the Exchange Traded Option (ETO) Crossing Rules. ASX believes the ETO crossing proposal outlined in the paper will result in clearer, more efficient and less time consuming execution.

ASX is inviting written submissions from interested stakeholders on the proposed ETO Crossing rule changes by 25 September 2013.

• a consultation paper entitled Proposed Changes to ASX Listing Rules and Guidance Note 9;
• a document entitled Proposed Governance-Related Amendments to the ASX Listing Rules, which sets out in mark-up the proposed amendments to ASX’s Listing Rules and describes in detail the purpose of the amendments; and
• a marked-up version of proposed changes to Guidance Note 9.
   

ASX’s media release is available here.

Most of the changes proposed to the Listing Rules and to Guidance Note 9 complement and give effect to the reforms proposed by the ASX Corporate Governance Council in a new edition of its Corporate Governance Principles and Recommendations. The Council has issued a separate consultation paper on the proposed new edition of its Corporate Governance Principles and Recommendations, which is available here.

ASX is inviting comments from all interested stakeholders on the consultation materials. Submissions are due by Friday, 15 November 2013. Parties may, if they wish, make a single submission responding to both ASX's and the Council's consultation papers.

06/05/13

On 6 May 2013, ASX released a market response and exposure draft Modernising the Timetable for Rights Issues: Draft ASX Listing Rules. The market response and exposure draft provides a response to feedback received through consultation undertaken in 2012 on proposals to reduce the timetables for rights issues. It also sets out draft amendments to the ASX Listing Rules to reduce the standard timetables for traditional rights issues from 26 to 19 business days, and to introduce standard timetables for accelerated rights issues..

01/05/13

On 1 May 2013, ASX released a Response to Consultation on Draft Operating Rules for its OTC Interest Rate Derivatives Clearing Service. The Response document summarises the feedback received from stakeholders on ASX’s February 2013 consultation paper and ASX’s response to that feedback. The Response document also attaches revised Operating Rules, incorporating changes made in response to stakeholder input, that are subject to formal approval by Clearing Participants and regulatory clearance.

10/04/13

On 10 April 2013, ASX released a consultation paper on the draft Code of Practice for Clearing and Settlement of Cash Equities in Australia. ASX is developing the Code following an announcement by the Deputy Prime Minister and Treasurer on 11 February 2013 to defer a decision on any licence application from a central counterparty seeking to compete in the Australian cash equity market, thereby retaining the current market structure for the next two years. ASX has committed to commencing the operation of the Code by 9 August 2013.

ASX released today its Review of ASX Listing Rules Guidance Note 8: Consultation Response, together with the final versions of:

• Guidance Note 8: Continuous Disclosure: Listing Rules 3.1 – 3.1B (in clean and mark-up format);
• Continuous Disclosure: An Abridged Guide (in clean and mark-up format); and
• ASX’s package of disclosure-related amendments to the ASX Listing Rules (in clean and mark-up format).

Drafts of these documents were released for public consultation on 17 October 2012. The marked-up versions being released today show the differences between the consultation drafts and the final versions, so interested parties can readily identify the changes.

ASX received 19 non-confidential and two confidential written submissions in response to its consultation paper. Copies of the non-confidential submissions are available below:

• Allens Linklaters
• Allens Linklaters in consultation with UBS on Example H6
• Arnold Bloch Leibler
• Australian Bankers’ Association Inc
• Australian Council of Superannuation Investors
• Australian Institute of Company Directors
• Australasian Investor Relations Association
• BHP Billiton Ltd
• Biotech Daily
• Chartered Secretaries Australia
• Clayton Utz
• Corrs Chambers Westgarth
• CPA Australia Ltd & Institute of Chartered Accountants Australia
• Group of 100 Inc
• Herbert Smith Freehills
• Johnson Winter & Slattery
• Law Council of Australia
• Lycopodium Ltd
• Telstra Corporation Ltd

19/02/13

On 19 February 2013, ASX released for public comment draft operating rules for ASX’s OTC Interest Rate Derivatives Clearing service.

ASX is inviting comments on the draft operating rules from all interested parties prior to formal submission of the rules to regulators for clearance.

15/02/13

On 15 February 2013 ASX made a submission the ASIC consultation paper CP196: Periodic statements for quoted and listed managed investment products and relief for AQUA products. ASX supported the proposal to provide relief to facilitate quotation of ETFs on the AQUA market.

15/02/13

On 15 February 2013 ASX made a submission the Treasury consultation paper Implementation of Australia’s G20 over-the-counter derivatives commitments. ASX supported the proposal to mandate trade reporting of OTC derivatives and indicated it would be establishing a trade reporting service under the new requirements.

01/02/13

On 1 February 2013 ASX made a submission to the Treasury consultation paper Options for amending the ASIC Market Supervision Cost Recovery Arrangements. ASX supports the broad design of the cost allocation methodology given it is consistent with the Government’s cost-recovery principles. The levy is designed to recover the costs of regulation from those whose activities are driving the costs of regulatory supervision. The submission notes that the proposal to provide an exemption for market makers from message based fees is problematic as it would be difficult to administer and would be open to gaming or to delivering inequitable outcomes.

01/02/13

On 1 February 2013 ASX made a submission to the Treasury consultation paper Australia’s Financial Market Licensing Regime: Addressing Market Evolution. ASX supports the proposals to modernise the market licensing regime to reflect significant changes in market structure (such as the growth of dark pools) and to provide a robust and flexible framework that can successfully adjust as markets continue to evolve.