Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.2 - LICENSING OF FINANCIAL MARKETS  

Division 5 - Other matters  

SECTION 798DA   MARKET LICENSEE, RELATED BODY CORPORATE ETC. OR COMPETITOR PARTICIPATING IN MARKET  

798DA(1)   [ Application]  

This section applies if any of the following is a participant (the participant ) in a market:

(a) the market licensee;

(b) a related body corporate of the market licensee;

(c) a partnership if a partner in the partnership is a related entity of the market licensee;

(d) an entity if:

(i) the entity conducts, or participates in, a business that is in competition with a business conducted by the market licensee, or by a related body corporate of the market licensee; and

(ii) the entity requests that ASIC make decisions and take action in relation to the matters referred to in subsection (2).

798DA(2)   [ Regulation of participant]  

Before, and at all times while, the participant is participating in the market, the market ' s operating rules must provide for ASIC, instead of the market licensee, to make decisions and to take action (or to require the market licensee to take action on ASIC ' s behalf) in relation to these matters, and matters related to these matters:

(a) the admission of the participant to the market; and

(b) the expulsion and suspension of the participant from the market; and

(c) the disciplining of the participant; and

(d) the participant ' s compliance with the operating rules or this Act, including:

(i) the method of determining whether the participant has complied with those rules or this Act; and

(ii) any action (including the imposition of a fine or penalty) to be taken in respect of contraventions of those rules or this Act.

Note: For fees in respect of ASIC performing this function, see Part 9.10 .

798DA(3)   [ Powers and functions of ASIC]  

ASIC has the powers and functions that are provided for it in any operating rules made for the purposes of this section.

798DA(4)   [ Prohibition on market licensee]  

A participant referred to in subsection (1) must not participate in the market licensee ' s market otherwise than as allowed by this section.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

798DA(5)   [ Limitation on application]  

This section does not apply if the licence of the market licensee was granted under subsection 795B(2) (overseas markets). Instead, the law of the country in which the market licensee ' s principal place of business is located applies for all purposes connected with the participation of the participant in the market.

798DA(6)   [ Prohibition on participation in own market]  

To avoid doubt, subsection (1) does not authorise a market licensee to participate in its own market.