ASIC has announced new rules for the ASX derivatives market, known as the ASX 24. The new market integrity rules cover a range of compliance areas, including risk management, supervisory procedures and foreign participants. The rules also cover disclosure about clearing arrangements, as well as obligations on participants to give priority to the client’s instructions where a conflict of interest arises.

New participants in the ASX 24 market will need to comply with the rules immediately. For existing participants, there will be a three month transition period. The final announcement by ASIC follows a two stage consultation process undertaken in May 2011 and late 2012.