ASX is introducing the first tranche of changes to ASX Operating Rule Schedule 10A, known as the “AQUA Rules”, to address regulatory commentary and guidance under ASIC Information Sheet 230 (INFO 230) and ASIC Report 583 - Review of exchange traded products for licensed exchanges that admit or consider admitting and facilitate trading of exchange traded products (ETPs).  The amendments to the AQUA Rules provide further clarity in relation to an AQUA product issuer’s obligations to disclose certain matters to ASX via an ASX market announcement and the timeframe to do so. The introduction of formal procedures will enhance the transparency of the admission requirements of AQUA Products for issuers and investors. The changes also facilitate other matters contemplated under INFO 230, including compliance with the proposed naming convention framework proposed by ASIC, more specific market making requirements for AQUA Product issuers, and index selection principles In accordance with previous practice the Warrant Rules under Schedule 10 of the Operating Rules are being amended to reflect (as appropriate) amendments to the AQUA Rules.

What's changing?

• Greater transparency through additional notification requirements in respect of Warrant and AQUA Product issuers;

• Naming requirements for Warrants and AQUA Products;

• Drafting refinements in relation to AQUA Product issuers’ liquidity and market making obligations;

• Formal requirements relating to index selection principles for underlying instruments; and

• Additional requirements in relation to OTC derivative exposure and disclosures.

The changes to the Warrant Rules reflect (as appropriate) the relevant changes to the AQUA Rules.

The following rule books will be amended:

• ASX Operating Rules

• ASX Operating Rules Procedures

Marked up versions of these rule books are attached.

What do I need to do by when?

Product issuers should read the attached ASX Operating Rule and Procedure amendments to familiarise themselves with the new requirements and implement processes or procedures necessary to comply with the amended Rules and Procedures on 1 July 2019.

Effective date

These changes become effective from 1 July 2019.

Need more information?

View more information in the following attachments:

ASX Operating Rules and Procedures Amendments - Schedule 10 and 10A

• ASX Operating Rules
• ASX Operating Rules Procedures

Issued by

Kim-Ly White, Manager, Investment Products Compliance

Contact information

Kim-Ly White
+61 (02)  9227 0662
investmentproducts.compliance@asx.com.au

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