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Financial Markets Conduct Act 2013

Dealing in financial products on markets - Licensing of markets for trading financial products - General obligations of licensed market operator

314: General obligations in respect of licensed markets

You could also call this:

"Rules for running a fair and honest market in New Zealand"

Illustration for Financial Markets Conduct Act 2013

If you are a licensed market operator, you must do everything you can to make sure your markets are fair, orderly, and transparent. You need to have good arrangements in place to operate your markets, including ways to share important information with people using your markets. You must also have enough resources, like money, technology, and staff, to run your markets properly.

You have to make sure you can handle any conflicts between your own business interests and the need to keep your markets fair. This includes monitoring what people do on your markets and making sure they follow the rules. You can do this by having a independent body to make decisions when someone breaks the rules.

You must also have plans in place to ensure you continue to meet the criteria set out in section 316(c) or 317(1)(d), depending on which applies to you. If people have to tell you important information, you need to have a way to share that information with others and keep it available.

When people have to share information with you, this is called a disclosure obligation. This can include rules from subpart 4, 5, or 6 that say people must tell you certain things. It can also include other laws or regulations that require people to share information with you so you can make it available to others using your markets.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091463.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
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Part 5Dealing in financial products on markets
Licensing of markets for trading financial products: General obligations of licensed market operator

314General obligations in respect of licensed markets

  1. A licensed market operator must,—

  2. to the extent that is reasonably practicable, do all things necessary to ensure that each of its licensed markets is a fair, orderly, and transparent market; and
    1. have adequate arrangements for operating its licensed markets, including arrangements—
      1. for notifying disclosures made to it under a disclosure obligation and for continuing to make those disclosures available; and
        1. for handling conflicts between the commercial interests of the licensed market operator and the need for the licensed market operator to ensure that the markets operate in the way referred to in paragraph (a); and
          1. for monitoring the conduct of participants on or in relation to the markets; and
            1. for enforcing compliance with the relevant market rules (for example, by having a sufficiently independent adjudicative body to adjudicate on contraventions of market rules that are referred to it); and
            2. have sufficient resources (including financial, technological, and human resources) to operate its licensed markets properly; and
              1. have adequate arrangements for ensuring that the criteria specified in section 316(c) or 317(1)(d), as the case may be, continue to be met.

                1. In subsection (1)(b)(i), disclosure obligation means—

                2. any provision of subpart 4, 5, or 6 that requires information to be notified or disclosed to a licensed market operator:
                  1. an alternative disclosure obligation:
                    1. a provision of this Act, the regulations, or another enactment that requires information to be notified or disclosed to a licensed market operator for the purpose of the information being made available to participants in a licensed market.

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                      Notes
                      • Section 314(1)(b)(i): replaced, on , by section 70(1) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
                      • Section 314(2): inserted, on , by section 70(2) of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).