Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.2.07

Content of licensed market's operating rules

                   For subsection 793A(1) of the Act, the following matters are matters with which the operating rules of a licensed market must deal to the extent that a matter is not dealt with in the market integrity rules:

                     (a)  access to the licensed market, including the criteria for determining persons who are eligible to be participants;

                     (b)  ongoing requirements for participants, including:

                              (i)  the conduct of participants in relation to the licensed market with the objective of promoting honesty and fair practice; and

                             (ii)  provision for the monitoring of participants' compliance with the operating rules; and

                            (iv)  provision for the expulsion or suspension of, or enforcement action against, a participant for breaches of the operating rules; and

                             (v)  provision for the expulsion or suspension of a participant for breaches of Chapter 7 of the Act, or regulations made under that Chapter; and

                           (vii)  provision for the expulsion or suspension of, or enforcement action against, a participant for a failure or expected failure to meet the participant's obligations under commitments entered into on the licensed market;

                     (c)  execution of orders;

                     (d)  the way in which disorderly trading conditions are to be dealt with, including disruptions to trading;

                     (e)  the class or classes of financial products that are to be dealt with on the licensed market by participants, including:

                              (i)  a description of the nature of each class of financial product; and

                             (ii)  for a class of derivatives, if most of the terms of the arrangement constituting the derivative are determined in advance by the market operator (including price, if determined in advance):

                                        (A)  the standard terms of the arrangement that constitutes the derivative; and

                                        (B)  a description of the asset, rate, index, commodity or other thing that is used for the matters mentioned in paragraph 761D(1)(c) of the Act;

                      (f)  the terms of the contract formed between participants that enter into a transaction through the licensed market (to the extent to which paragraph (e) does not require that information);

                     (g)  if appropriate, the listing of entities, including:

                              (i)  admitting an entity to the official list of the licensed market for the purpose of enabling financial products of the entity to be traded on the licensed market, and removing an entity from the official list; and

                             (ii)  the activities or conduct of an entity that is included on the official list of the licensed market, including a description of the arrangements for the disciplining of the entity for a breach of the operating rules;

                     (h)  mechanisms through which market-related disputes between participants may be settled (for example, arbitration arrangements);

                      (i)  the power to facilitate the assessment and, if appropriate, the investigation of market-related disputes between participants;

                      (j)  any obligations on participants and listed entities that are necessary to ensure that the market licensee is able to comply with subparagraph 792A(c)(i) of the Act and regulations made under section 798E of the Act.



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