ASIC is consulting on amendments to its low-volume financial market licence exemption, including a proposed increase in the transaction-value threshold from A$1.5 million to A$2.5 million before the instrument expires.
ASIC Consults on Amendments to the Low-Volume Financial Market Licence Exemption
The Australian Securities and Investments Commission (ASIC) published Consultation Paper CS 60 on 2026-07-23, seeking industry feedback on proposed amendments to a legislative instrument that exempts low-volume financial markets from the mandatory requirement to hold an Australian market licence.
The existing exemption operates under the ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888 and is due to expire on 2026-10-01. ASIC stated that it is proposing to amend the instrument because the measure has operated effectively and remains a necessary and useful component of the legislative framework.
(Source: ASIC, CS 60 consultation paper on proposed amendments to the low-volume financial markets instrument, published: 2026-07-23.)
Only Substantive Amendment: Higher Threshold
The only substantive amendment in the proposal is an increase in the transaction-value threshold from A$1.5 million to A$2.5 million. ASIC stated that the adjustment reflects factors including inflation and noted that the threshold has remained unchanged since it was set in 2016.
All other proposed amendments are minor, technical or consequential and would not materially change the practical operation of the instrument.
Criteria for a Low-Volume Financial Market
A financial market must satisfy both of the following conditions during the 12 months before being entered on the register to qualify as a low-volume financial market:
No more than 100 transactions were completed during the period.
The total value of those transactions did not exceed the applicable threshold.
Key Data and Dates for the Proposed Amendments
| Item | Current Provision | Proposed Amendment | Key Date |
|---|---|---|---|
| Transaction-value threshold | A$1.5 million | A$2.5 million | Unchanged since being set in 2016 |
| Maximum number of transactions | No more than 100 within 12 months | No change | — |
| Instrument expiry date | ASIC Instrument 2016/888 | To be retained following amendment | 2026-10-01 |
| Feedback deadline | — | Submission by email | 17:00 on 2026-08-20 (Australian Eastern Standard Time) |
| Consultation paper number | — | CS 60 | Published on 2026-07-23 |
| Automatic sunsetting period | 10 years after a legislative instrument takes effect | ASIC must actively preserve the instrument | Under the Legislation Act 2003 |
Feedback Submission Arrangements
ASIC has requested that interested parties submit feedback on the proposal by email before 17:00 Australian Eastern Standard Time on 2026-08-20. The full text of the proposed draft instrument was published alongside Consultation Paper CS 60.
Legislative Background to the Sunsetting and Exemption Framework
The proposed amendments form part of a routine review triggered by the sunsetting provisions. Under the Legislation Act 2003, legislative instruments automatically cease to have effect after 10 years, a process known as sunsetting, unless ASIC takes active steps to preserve them.
Specific Functions of the Exemption
ASIC Instrument 2016/888 currently performs the following functions:
It exempts low-volume financial markets from the mandatory requirement to hold an Australian market licence.
It exempts these markets from complying with the operational requirements under Part 7.2 of the Corporations Act 2001.
ASIC explained the policy basis for the exemption, stating that requiring low-volume financial markets to hold an Australian market licence would not be consistent with the purpose for which the market licensing regime was established. The imbalance between the regulatory intensity of the licensing regime and the actual operating scale of these markets provides the justification for retaining the exemption.
Frequently Asked Questions About the Low-Volume Financial Market Licence Exemption
What qualifies as a low-volume financial market?
A market must satisfy two conditions during the 12 months before being entered on the register: no more than 100 transactions must have been completed, and the total value of those transactions must not have exceeded the prescribed threshold. Both conditions must be satisfied.
What is the main change proposed in this amendment?
The transaction-value threshold would increase from A$1.5 million to A$2.5 million. This is the only substantive amendment in the proposal, and the adjustment reflects factors including inflation. The threshold has not changed since it was established in 2016. All other amendments are technical or consequential.
Why must the instrument be reconsidered in 2026?
Under the Legislation Act 2003, legislative instruments automatically cease to have effect after 10 years. The expiry date for ASIC Instrument 2016/888 is 2026-10-01. Unless ASIC takes active steps to preserve it, the exemption will automatically end.
Which obligations are removed for exempt markets?
The exemption covers two obligations: the mandatory requirement to hold an Australian market licence and the requirement to comply with the operational provisions under Part 7.2 of the Corporations Act 2001. ASIC’s position is that imposing a licensing requirement on low-volume markets would not align with the purpose of the regime.
When is the deadline for submitting feedback?
Feedback must be submitted by email to ASIC’s designated consultation address before 17:00 Australian Eastern Standard Time on 2026-08-20. The proposed draft instrument and consultation details were published with the CS 60 document.
