Entire section
2. AUTHORISATION
4. DIRECT ELECTRONIC ACCESS

3. MEMBERSHIP CRITERIA AND ACCESS

3.1.Admission criteria

(1)    A Trading Facility Operator must ensure that access to its facilities is subject to criteria designed to protect the orderly functioning of the market and the interests of investors.

(2)    A Trading Facility Operator may, subject to MOTF 3.2(2) and (3), accept as a Member:

(a)an Authorised Firm;

(b)a Body Corporate other than the Authorised Firm; or

(c)a Person not referred to in (a) and (b), only if: 

  1. (i)the facility is one on which Qualified Investments are traded; and
  2. (ii)the Person’s access is only for trading Qualified Investments.

(3)    The AFSA may, if it considers on reasonable grounds that it is appropriate to do so, require the Trading Facility Operator to have effective systems and controls in place to restrict the maximum number of Persons referred to in MOTF 3.1(2)(c) allowed to trade on its facility.

3.2.Membership Rules

(1)    A Trading Facility Operator must make transparent and non-discriminatory rules, based on objective criteria, governing access to, or membership of, its facilities. In particular, those rules must specify the obligations of users or Members of its facilities arising from:

  1. (a)the constitution and administration of the Operator;
  2. (b)rules relating to transactions on the Operator’s market;
  3. (c)in case of an Authorised Firm, its professional standards for staff having access to or membership of a financial market operated by the Operator;
  4. (d)in case of a Body Corporate other than the Authorised Firm, conditions for access to or membership by Persons of a financial market operated by the Operator;
  5. (e)in case of a natural person, conditions for access to or membership of a financial market operated by the Operator; and
  6. (f)the rules and procedures for clearing and settlement of transactions.

(2)    A Trading Facility Operator may only give access to or admit to membership a Person who:

  1. (a)is fit and proper and of good repute;
  2. (b)if applicable, has a sufficient level of ability, competence and experience, including appropriate standards of conduct for its staff; and
  3. (c)if applicable, has adequate organisational arrangements, including financial and technological resources.

(3)    In assessing whether access to a Trading Facility Operator’s facilities is subject to criteria designed to protect the orderly functioning of the market or of those facilities and the interests of investors, the AFSA may have regard to whether:

(a)the Operator limits access as a Member to such Persons:

  1. (i)over whom it can with reasonable certainty enforce its rules contractually;
  2. (ii)who have sufficient technical competence to use its facilities; and
  3. (iii)if appropriate, who have adequate financial resources in relation to their exposure to the Operator;

(b)indirect access to the Operator’s facilities is subject to suitable criteria, remains the responsibility of a Member of the Operator and is subject to the Operator’s rules; and

(c)the Operator’s rules:

  1. (i)set out the design and operation of the Operator’s relevant systems;
  2. (ii)set out the risk for Members and other users when accessing and using the Operator’s facilities;
  3. (iii)contain provisions for the resolution of Members’ and other users’ disputes and an appeal process for the decisions of the Operator;
  4. (iv)contain disciplinary proceedings, including any sanctions that may be imposed by the Operator against its Members and other users; and
  5. (v)set out other matters necessary for the proper functioning of the Operator and the facilities operated by it.

3.3.Lists of users or Members

A Trading Facility Operator must regularly make arrangements to provide the AFSA with a list of users or Members of its facilities.