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New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Dealing in financial products on markets - Licensing of markets for trading financial products - Approval of contractual market rules

328: Required matters for market rules

You could also call this:

"Rules to Keep Trading Fair and Safe"

Illustration for Financial Markets Conduct Act 2013

When you trade financial products, you need to follow market rules. Market rules are like guidelines that help you trade safely and fairly. These rules are different for different types of products, like equity securities or derivatives.

You must have listing rules and business rules for some products, like equity securities or managed investment products. Listing rules help decide who can trade on the market and how they should behave. Business rules help decide how people can participate in the market and how they should conduct their business.

Listing rules cover things like how companies are approved to trade on the market, and how they are governed. They also cover how companies behave on the market and how rules are enforced. Business rules cover things like who can trade on the market, and how they should conduct their business. They also cover how the market is monitored and how rules are enforced, you can find more information about this by looking at the related legislation.

You should be aware that market rules are in place to protect you and help you make informed decisions when trading financial products. Market rules are an important part of trading financial products, and they help keep you safe. They are like a set of instructions that help you navigate the market and make good choices.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091482.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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327: Licensed markets must be operated under market rules that comply with this subpart, or

"Licensed markets must follow their own rules to work fairly and safely."

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329: When market rules have effect, or

"When do market rules actually start working?"

Part 5Dealing in financial products on markets
Licensing of markets for trading financial products: Approval of contractual market rules

328Required matters for market rules

  1. Market rules for a financial product market for trading equity securities, debt securities, or managed investment products must include listing rules and business rules (by whatever name called and however they are imposed).

  2. Market rules for a financial product market for trading derivatives must include business rules (by whatever name called and however they are imposed).

  3. Listing rules must include rules that—

  4. relate to the approval of persons for the purpose of enabling financial products issued by those persons to be traded on the market; and
    1. require those persons to be party to a listing agreement with the licensed market operator and that relate to the entry into, and revocation of, listing agreements; and
      1. relate to the governance of those persons; and
        1. relate to the conduct or activities of those persons in relation to that market or to financial products traded on that market; and
          1. relate to the monitoring and enforcement of those rules.

            1. Business rules must include rules that—

            2. relate to the authorisation of persons to undertake trading activities on, or otherwise participate in, the market; and
              1. relate to the conduct or activities of those persons in relation to the market; and
                1. govern the conduct of business on the market; and
                  1. relate to the monitoring and enforcement of those rules.

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