Clicky

ASIC gives regulatory nod to new Chi-X product

The Australian Securities and Investments Commission (ASIC) has updated market integrity rules to enable the introduction of a new type of financial product that Chi-X Australia Limited (Chi-X) is introducing to the market, known as transferable custody receipts (TraCRs).

According to the regulator, TraCRs are units of beneficial ownership in equities listed on certain overseas exchanges, where the foreign equities are held in custody for the issuer of the TraCRs.

They are “unsponsored” in the sense that TraCRs are issued and quoted on the Chi-X market without the consent or involvement of the overseas equity issuer, ASIC said.

Related News:

The updated rules include TraCRs in the definition of “cash market products” in the regulator’s new consolidated rulebook, the ASIC Market Integrity Rules (Securities Markets) 2017, which ASIC said will allow appropriate market supervision arrangements for TraCRs by bringing these products into the market supervision framework.

In order to quote and trade TraCRs on the Chi-X market, Chi-X has also obtained regulatory approvals for a variation to its Australian market licence and a declaration under the Corporations Act for TraCRs amendments to the Chi-X operating rules, ASIC said.

The issuer of TraCRs, Deutsche Access Investments Limited, has also obtained relief in relation to the TraCR product, the regulator said.

ASIC said it also made amendments to several instruments, which included relief for product issuers, authorised participants and market makers of Chi-X exchange-traded funds (ETFs).

It also made changes to the ETF definition in these instruments to ensure that it reflected the key characteristics of this product and was market neutral in relation to the ASX and Chi-X markets.




Related Content

Direct FX loses licence after six-month suspension

The Australian Securities and Investments Commission (ASIC) has cancelled the Australian financial services (AFS) licence of Direct FX Trading Pty Ltd...Read more

Former financial services rep banned for stealing

The Australian Securities and Investments Commission (ASIC) has banned former financial services representative, Craig James Wilson, providing financi...Read more

Industry funds allege investment manager carve-out

Product manufacturers should not be excluded from the target market of the Australian Securities and Investment Commission’s product intervention po...Read more

Author

Comments

Add new comment