ASX consults on proposed ASX Operating Rule and ASX Settlement Operating Rule amendments to facilitate ETP naming convention updates

What's this about:
  • ASX Market
  • Exchange Traded Products (ETP) & mFund
  • Trading
  • Product
  • Operations
  • Rules
  • Compliance
  • Risk
  • AQUA Market
  • ETPs
  • ETFs
  • ETF Securities
  • Managed Funds
  • Managed Fund Products
  • Structured Products
  • Rules
  • Procedures
  • Product Names
  • Naming Conventions
  • INFO 230
Notice reference number: 0541.23.06
Date published: 07/06/23
Effective as of: 07/06/23
Last updated: 07/06/23
ASX is seeking feedback on proposed amendments to the ASX Operating Rules and ASX Settlement Operating Rules to:
•       implement ASIC’s revised INFO 230 expectations regarding ETP naming conventions;
•       provide a clear transitional framework for existing AQUA Product Issuers for the migration of existing AQUA Products to the new naming convention; and
•       make other consequential structural enhancements and tidy-up amendments to Schedule 10A of the ASX Operating Rules (AQUA Rules).


In November 2022 ASIC released a revised version of INFO 230 setting out updates to ASIC’s regulatory expectations in relation to exchange traded product (ETP) naming conventions. This followed consultation by ASIC during the course of 2022 on stakeholder experiences on such naming convention and proposals to simplify them and to promote flexibility in the next phase of ETP market development.
To facilitate the implementation of ASIC’s updated ETP naming expectations set out in the revised INFO 230, ASX needs to make amendments to the ASX Operating Rules (ASXORs) and ASX Settlement Operating Rules (ASXSORs) (together, the rulebooks) and related Procedures. This includes amendments to align categories of AQUA products that may be admitted to trading status with ASIC’s updated ETP naming conventions - which no longer contemplate a Managed Fund as an ETP product label, with the only primary labels contemplated for ETPs being Exchange Traded Fund (or ETF) or Structured Product (or Structured).  
ASX has also identified a number of other structural drafting improvements and tidy-up changes to the AQUA Rules which it is opportune to make at this time, including:
•       restructuring AQUA Rules 10A.4 and 10A.5 to more clearly set out and distinguish disclosure requirements and other additional requirements attaching to different AQUA Products based on product type;
•       re-ordering the sequence of certain rules so that those rules relating to products admitted to Trading Status (i.e. ETFs and Structured Products) can be read together, followed by rules relating to Non-Traded Products (i.e. Managed Funds); and
•       consequential amendments to the ASXORs and ASXSORs to reflect new rule references and make other tidy-up corrections.
ASX expects that the naming convention updates to INFO 230 and the proposed amendments in this paper will primarily impact AQUA Product Issuers that issue Managed Fund Products admitted to trading status since those products will be re-categorised as ETFs under the proposed amendments, although there will also be an impact on AQUA Product Issuers that issue ETFs in relation to new flow of funds disclosure requirements.
ASX’s Consultation Paper, including the proposed draft rule amendments is available here.

What do I need to do by when?

ASX is inviting stakeholder feedback on the operation of the draft rule amendments set out in the Consultation Paper, including any unintended consequences and associated impacts, to assist in finalising the draft rules for the new AQUA Product naming convention. ASX has also identified some specific amendments in relation to which feedback is sought.

Consultation feedback is requested by 19 July 2023.  

ASX prefers to receive submissions in electronic form. If you would like your submission, or any part of it, to be treated as ‘confidential’, please indicate this clearly. All submissions will be provided to regulators. They may also be published on the ASX website, unless they are clearly marked as confidential or ASX considers that there are reasons not to do so.

Need more information?

Issued by

Andrew Campion
General Manager, Investment Products

Contact information

Con Korkofigas
Senior Manager and Senior Legal Counsel
+61 2 9227 0433

Rohan Cush
Senior Legal Counsel
+61 2 9227 0403