Australia New Market Supervision Fees Regulations to Apply from 1 July 2013

Greg Medcraft ASIC chairman

Greg Medcraft ASIC chairman

The Corporations (Fees) Regulations 2001 (the Regulations) are soon to be amended. The invoice statements that market operators and market participants receive in early to mid July 2013 for the quarter ending 30 June 2013 will be the last prepared under the current Regulations.

ASIC will continue to bill quarterly in arrears under the new Regulations effective from 1 July 2013. ASIC expects that the first invoice statements prepared according to the new Regulations will be sent to market operators and market participants in early to mid October 2013.

The key changes that we expect to apply to the Regulations for all relevant stakeholder groups are as follows:
• ASX, Chi-X and their market participants – Cost recovery allocated to trading activity will reduce, and cost recovery allocated to messaging will increase. This is based on the rationale that order message-related supervision activity has become a material part of ASIC’s costs since ASIC’s last market supervision cost driver analysis was performed.
• Market participants of ASX and/or Chi-X – A new quarterly minimum fee of $1,835 per market participant. ASIC’s cash equity market participant supervision costs are not wholly variable. Market participants subject to the market integrity rules have a dedicated pool of resources allocated to their supervision, regardless of their trading and messaging activity and the new quarterly fee of $1,835 per market participant reflects this.
• Other market operators – ASX 24, new quarterly fixed fee $344,670 (previously $386,000); FEX Global Pty Ltd, $49,930; and small financial markets (ie. NSX, SIM, IMB and APX), $8,735 (previously $9,375). In the case of FEX and APX, charges will apply once these markets commence operating.

There will also be amendments to all of the above in relation to the processing of late payment fees, which have been made simpler and more efficient to administer.

More details will be sent to affected stakeholders, shortly after the new Regulations are made.
For more information, see Treasury’s consultation webpage ASIC market supervision cost recovery arrangements July 2013 – June 2015. This includes the following documents:
• a set of draft amendments to the relevant provisions in the Corporations (Fees) Regulations 2001, with explanatory commentary; and
• a draft Cost Recovery Impact Statement (CRIS) compiled by ASIC that explains in detail the changes to the specific amounts charged and the manner in which the charges are calculated.

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