Supervisory Body

Effective 1 August 2010, the supervision of trading on Australia’s domestic licensed markets and the supervision of trading participants was transferred from ASX to the Australian Securities and Investments Commission (ASIC). 

ASX Compliance is a wholly owned subsidiary of ASX which fulfils ASX's oversight obligations as a market operator and clearing and settlement facility operator.  ASX Compliance has responsibility for the oversight of listed entities under the ASX Listing Rules and for monitoring and enforcement of compliance with the operating rules by market, clearing and settlement participants.

Name of Clearing & Settlement Organization

ASX Clearing Corporation provides central counterparty facilities through its two subsidiaries: 

• ASX Clear Pty Limited for securities listed on the ASX Trade platform, including cash market securities (equities, pooled investment products and warrants) and predominantly equity-related derivatives (comprising exchange traded options and futures); and
• ASX Clear (Futures) Pty Limited for futures and options in interest rate, equity, energy and commodity products that are traded on ASX Trade24.

Settlement Cycle

T + 3 (cash equities)

Name of Central Securities Depository

ASX Settlement Corporation’s wholly owned subsidiaries, ASX Settlement and ASX Austraclear provide a 'delivery versus payment' settlement service, secure asset holding services as well as a wide network that enables 'straight through processing'.

• ASX Settlement provides the settlement system and a fully electronic securities depository for equity and equity-related securities.
• Austraclear provides the settlement system and central securities depository (CSD) for the wholesale debt market.

Commissions on Transactions levied by Exchange

Exchange fees for cash equities trading apply to the value traded.

Taxes on Dividends, Interests

Australia’s taxation arrangements are administered by the Australian Taxation Office.

Australia operates a dividend imputation system for resident shareholders that provides a credit for tax paid at the corporate level, with dividends received taxed at the marginal income tax rate of the shareholder.

Capital gains tax applies to net realised gains and is generally taxed at the taxpayer’s marginal income tax rate (with a 50% discount where the asset has been held for more than 12 months). Non-resident taxpayers are usually exempt from paying Australian capital gains tax on portfolio investments.

Withholding tax rates are generally applied to non-resident investments at a rate of 10% for interest payments and 30% for dividends (dividends with imputation credits attached are exempt), unless an international treaty agreement reduces the rate. 

2010 Share ownership thresholds (%)

There is a requirement for investors to file an initial substantial shareholding notice where they acquire a “relevant interest” in equity securities representing greater than 5 per cent of the voting rights of a public company.

Investors are also required to notify any subsequent changes (up or down) of 1% or more in their holding.

Short selling (Yes / No)

Yes

Short selling conditions (if any)

Covered short sales are permitted. Naked short sales, while generally prohibited, are allowed in some limited circumstances (eg in relation to market making activities).The arrangements governing short selling are contained in the Corporations Act (2001).

ASIC’s Regulatory Guide 196 “Short selling” provides more detail on regulatory arrangements and reporting obligations applying to short selling in Australia. The Guide can be found at http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/rg196-1.pdf/$file/rg196-1.pdf