The requirement, in our words
Where ASIC reasonably considers that a Trading Participant is failing the Trading System Requirements, or that a direction is otherwise appropriate, the participant must comply with the direction. It must stop sending all messages, or a class of them, to a Trading Platform for a Market, or several, until ASIC is satisfied, or immediately suspend, limit or prohibit message sending for a named Authorised Person or client, one or more financial products, one or more Markets, or how one or more Trading Algorithms operate. The rule now speaks of Trading Messages and Trading Algorithms rather than Automated Order Processing.
What the rule is trying to do
The direction power follows the new system boundary. The firm must be able to act at the level the direction names, including a single algorithm, and to show the time it acted. The obligation is to comply, not to negotiate the scope after the deadline.
What good practice looks like
Map each direction dimension to a control that can be operated by the participant. Write a direction response playbook with the decision maker, the technical operator, the market notification and the evidence to keep. Test a direction to stop one algorithm and one product. Record the time the direction was received and the time the control took effect.
What changed in the instrument
Items 83 to 92 amend Rule 5.6.12. The heading becomes ASIC direction to limit trading, Automated Order Processing becomes Trading System or the submission of Trading Messages, two old subparagraphs are repealed, and how one or more Trading Algorithms operate is added as a direction dimension.
Evidence an auditor or ASIC asks for
| Category | Record to keep | Retention |
|---|---|---|
| Playbook | The ASIC direction response playbook with roles, the control for each dimension and the escalation path. | Current. |
| Test | A tabletop or live test of a direction to stop one algorithm and one product, with the elapsed time. | Current, with date and result. |
| Direction record | The written direction, the action taken, the time it took effect and the confirmation to ASIC. | Seven years. |
| Notification | The market and client notifications made as a result of the direction. | Seven years. |
Common gaps
- The kill switch stops all trading, so the firm cannot comply with a direction limited to one algorithm.
- The playbook has no named technical operator outside business hours.
- The time the control took effect is not recorded.
- The direction is treated as confidential and the affected clients are not told when required.
What to do before 17 March 2028
- Map every direction dimension to an operable control.
- Name the decision maker and the technical operator for each shift.
- Test one algorithm and one product stop.
- Record receipt and effect times in the playbook.
Dates and cross-references
Commences: 17 March 2028 (Rule 2 of F2026L01223 and the registration date). Retention: Seven years for the direction record.
Read with: 5.6.3, 5.6.7, 5.6.3B.
Source
This page reads ASIC Market Integrity Rules (Securities Markets) Amendment Instrument 2026/574 (F2026L01223), Schedule 1, items 83 to 92, against the current compilation Compilation No. 6 (F2024C01108). Retrieved 2026-10-19. The requirement above is our own statement, not the instrument's wording. Not legal advice; does not certify.