ASIC moves to preserve derivatives and securities relief framework

ASIC is seeking industry feedback on plans to remake four legislative instruments covering exchange-traded derivatives, securities transfers and securities lending arrangements, ahead of their scheduled sunset later this year.

The regulator said the instruments, which are due to expire between September and October 2026, continue to operate effectively and remain a necessary part of Australia's financial markets framework.

ASIC proposes to remake the instruments for a further five years with only minor amendments, with no change to their practical effect.

The relief measures cover a range of market activities, including product disclosure obligations for certain exchange-traded derivatives, the recognition for securities transferred through New Zealand's settlement system, transfer arrangements for foreign companies quoted on the ASX, and disclosure requirements relating to securities lending.

Under the Legislation Act, legislative instruments automatically sunset after 10 years unless action is taken to preserve them.

Among the proposals is the remaking of relief that modifies product disclosure statement requirements for certain exchange-traded derivatives involving multiple issuers. The relief allows market participants, rather than intermediaries, to assume primary disclosure responsibilities.

ASIC also intends to preserve arrangements that recognise securities transferred through New Zealand's NZCDC Legal Title Transfer system, supporting cross-border market activity between Australia and New Zealand.

In addition, the regulator plants to continue relief relating to securities lending arrangements, which provides exemptions from certain substantial holding disclosure requirements under the Corporations Act.

The consultation forms part of ASIC's regular review of legislative instruments approaching sunset. While the regulator has flagged minor amendments, it's said the overall operation and effect of the instruments would remain unchanged.

Stakeholders have until 20 July 2026 to provide feedback proposal.