Stake AUS general regulatory requirements

Australian law strictly prohibits certain trading behaviours to help ensure the market remains fair, orderly and transparent. As an investor, you’re responsible for understanding and complying with these rules.

Prohibited conduct under the Corporations Act

The Corporations Act 2001 prohibits various forms of market misconduct, including:

• Market manipulation
  It’s illegal to place orders or trades that:

  • Create an artificial price for a financial product (s1041A)

  • Create a false or misleading appearance of trading activity (s1041B)

  • Artificially maintain a trading price (s1041C)

• Insider trading
  It’s illegal to buy or sell a financial product while in possession of inside information – that is, material information not yet made public (s1043A and s1042A)

These are just some of the provisions that may apply to your trading activity. If you’re ever unsure, we recommend seeking independent legal advice before placing an order.

ASIC Market Integrity Rules (MIRs)

Under the ASIC Market Integrity Rules, Market Participants (such as our execution partner FinClear) must:

• Not do anything that would result in a market being unfair or disorderly (Rule 5.9.1)

• Not place orders that may give a false or misleading impression of price or trading activity (Rule 5.7.1)

Before placing an order, Market Participants are required to assess whether it could have that effect, based on various factors including:

• Whether the order could materially impact the price of a security

• The time of order entry or any instructions about timing

• Whether the order is being placed for another person or by a related party

• Whether there’s a genuine commercial reason for the order, unrelated to creating misleading trading activity

• The size of the order

• Whether there’s a change in beneficial ownership

• How often a person cancels or amends orders relative to completed trades

For more information, refer to ASIC’s guidance or seek professional advice.