Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 (87 of 2024)

Schedule 2   Financial market infrastructure: new and enhanced regulatory powers

Part 3   Declared financial markets and widely held market bodies

Division 3   Widely held market bodies

Corporations Act 2001

31   Section 850A

Repeal the section, substitute:

850A Scope of Division

(1) This Division applies in relation to widely held market bodies.

Meaning of widely held market body

(2) A body corporate is a widely held market body if the body:

(a) is:

(i) a market licensee or the holding company of such a licensee; or

(ii) a CS facility licensee or the holding company of such a licensee; and

(b) is declared under subsection (3).

(3) ASIC may, by legislative instrument, declare a specified body corporate for the purposes of paragraph (2)(b) if, having regard to the matters in subsection (4), ASIC is satisfied that:

(a) if the body is a market licensee or the holding company of such a licensee - the financial market to which the licence relates is of national significance; or

(b) if the body is a CS facility licensee or the holding company of such a licensee - the clearing and settlement facility to which the licence relates is of national significance.

(4) The matters are:

(a) the significance to the national economy of the operation of the market or the facility; and

(b) the size and importance of the market or the facility:

(i) in the context of the Australian financial products and services industry; and

(ii) relative to other financial markets on which similar financial products are dealt, or other clearing and settlement facilities providing similar services, in Australia; and

(c) the degree of, or potential for, competition within the market or the facility; and

(d) any other matters that ASIC considers relevant.

(5) ASIC must not make a declaration under subsection (3) unless:

(a) the Minister has approved it in writing; and

(b) if the proposed declaration relates to a body corporate mentioned in subparagraph (2)(a)(ii) - ASIC has consulted the Reserve Bank about it.