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IDSXINTERNATIONAL DIGITAL SECURITIES EXCHANGE

IDSX · IDSX COMPLAINTS & DISPUTE RESOLUTION RULES

DRAFT

IDSX Complaints & Dispute Resolution Rules

IDSX · Version 1.0 · Draft

DRAFT – FOR REGULATORY DISCUSSION

This document forms part of the proposed IDSX market framework and has been prepared for consultation, regulatory engagement and market design purposes.

IDSX is currently a proposed financial product market and has not commenced operation as a licensed financial product market.

Nothing in this document should be interpreted as representing that IDSX, its proposed market structure, rules, systems or operating arrangements have been approved, authorised or endorsed by the Financial Markets Authority or any other regulatory authority.

The provisions of this document represent the proposed rules and operating standards that IDSX intends to apply if and when the relevant regulatory approvals have been obtained.

The final form of these rules may be amended following regulatory consultation, legal review, technical development and the applicable licensing process.

Effective date: To be determined

1. PURPOSE

These Rules establish fair, accessible and timely procedures for complaints and disputes connected with IDSX; allocate responsibilities; distinguish market-rule issues from private claims; and support market integrity.

2. SCOPE

They apply, where relevant, to investors, Issuers, Brokers, Sponsors, Underwriters, Market Makers, Custodians, Settlement Providers, other Market Participants and persons whose matter IDSX accepts within scope.

3. DEFINITIONS

“Complaint” is dissatisfaction about an IDSX-related activity, service, decision, conduct or omission for which a response is reasonably expected. A “Complainant” makes it; a “Dispute” concerns related rights, duties, transactions or conduct; a “Respondent” is the person complained of.

4. GENERAL PRINCIPLES

Handle matters fairly, impartially, accessibly, confidentially, proportionately and promptly, with procedural fairness and in accordance with law. No person may be disadvantaged solely for a good-faith Complaint.

5. RIGHT TO MAKE A COMPLAINT

A person may complain about IDSX-related conduct, orders, execution, settlement, Client Assets, custody, fees, Digital Securities, wallets, transfers, Issuer disclosure, corporate actions, access, alleged rule breaches or other material effects on market participation.

6. COMPLAINTS AGAINST MARKET PARTICIPANTS

Client-service complaints should ordinarily go first to the relevant participant. IDSX may act directly for possible rule breaches, integrity effects, multiple affected persons, material Client Asset risks, serious misconduct or other appropriate circumstances.

7. COMPLAINTS AGAINST IDSX

Where practicable, complaints about IDSX services, systems, administration or activities should be reviewed independently of the person responsible. This process does not prevent action needed for a fair and orderly market.

8. HOW TO SUBMIT A COMPLAINT

Use a channel designated by IDSX or the participant. Include available contact and account details, description, dates, securities or transactions, documents, prior communications and requested outcome. An understandable complaint must not be rejected only for format.

9. ACKNOWLEDGEMENT OF COMPLAINT

IDSX or the participant should acknowledge receipt within a reasonable time and, as appropriate, give a reference, identify needed information, explain the review process and provide contact details.

10. INITIAL ASSESSMENT

IDSX may assess the matter's nature and jurisdiction, whether another process should act first, urgency, risks to Clients or integrity, possible rule breaches, regulatory notifications and referrals.

11. URGENT MATTERS

Priority may be given to immediate asset risks, suspected fraud, unauthorised transactions, manipulation, misleading disclosure, cyber incidents, compromised keys, material settlement failures or other significant investor or integrity risks. IDSX may take permitted interim measures.

12. INVESTIGATION OF COMPLAINTS

IDSX may investigate matters within its remit and request information from Complainants, Respondents, Issuers, participants, providers or others. Persons subject to IDSX Rules must cooperate with reasonable requests, subject to law.

13. PROCEDURAL FAIRNESS

Before an adverse determination, the affected person should ordinarily have a reasonable opportunity to answer material allegations or information. This does not prevent urgent interim protection.

14. COMPLAINT OUTCOMES

IDSX may close a matter, explain its view, require corrections, records or disclosure, require reconsideration, refer it to another process or disciplinary review, notify a regulator, or take other authorised action.

15. IDSX DOES NOT DETERMINE PRIVATE DAMAGES

Unless law or an agreed process authorises it, IDSX is not a court or arbitral tribunal and does not decide private damages, civil liability, contract claims, title, negligence, compensation or other private rights. External processes may be needed.

16. MARKET PARTICIPANT COMPLAINT PROCEDURES

Participants serving Clients must maintain proportionate procedures for receiving, recording, acknowledging, investigating, escalating and resolving complaints; managing conflicts; communicating; external referral where applicable; and recordkeeping.

17. INDEPENDENCE

Where practicable, a complaint should not be finally decided solely by its subject. Participants must identify and manage conflicts in complaint handling.

18. RESPONSE TO COMPLAINANT

After review, the Complainant should receive a clear response stating the matter and outcome, reasons, corrective action, remaining options and applicable external resolution information.

19. TIMEFRAME

Handle complaints within a reasonable period considering urgency, complexity and nature. Participants must meet legal deadlines and tell Complainants of material delays and, where appropriate, reasons.

20. EXTERNAL DISPUTE RESOLUTION

Participants must join legally required external schemes and inform eligible Clients about applicable arrangements when required. These Rules do not limit lawful access to external mechanisms.

21. REGULATORY COMPLAINTS

Anyone may contact a competent regulator. IDSX may refer matters when required by law, unlawful conduct is suspected, another authority has primary jurisdiction, investor protection warrants it or market integrity may be affected.

22. DISPUTES BETWEEN MARKET PARTICIPANTS

Disputes may concern trading, settlement, delivery, records, fees, corporate actions, Digital Securities transfers, operations or IDSX Rules. Parties should first make reasonable efforts to resolve them directly.

23. IDSX ROLE IN PARTICIPANT DISPUTES

IDSX may guide or determine application of its Rules where authorised. It does not resolve purely contractual disputes unless Rules provide, parties agree to an IDSX process or a market-rule or integrity issue also arises.

24. ISSUER AND SPONSOR DISPUTES

Issuer–Sponsor contract disputes should ordinarily follow their agreement. IDSX may separately assess compliance, disclosure, admission, Sponsor eligibility or rule concerns. Ending the relationship does not end continuing IDSX duties.

25. ISSUER AND MARKET MAKER DISPUTES

Commercial disputes should ordinarily follow the parties' contract. IDSX may intervene separately where Market Maker duties, liquidity, orderly trading, integrity or IDSX compliance is affected.

26. BROKER AND CLIENT DISPUTES

Broker–Client disputes should ordinarily use the Broker's process. IDSX may investigate separately for possible rule breaches, broader integrity issues or investor-protection concerns.

27. TRADING AND TRANSACTION DISPUTES

Participants must notify IDSX of disputed trades, executions, settlement or system records within applicable deadlines. IDSX may review orders, timestamps, executions, market data, settlement, blockchain records and logs, and correct records where authorised. Commercial regret alone does not cancel a trade.

28. DIGITAL SECURITIES DISPUTES

Evidence may include blockchain data, wallet control and eligibility, keys, securities registers, beneficial ownership, smart contracts, transfer restrictions and settlement. Blockchain evidence must be considered with law and other records.

29. OWNERSHIP DISPUTES

IDSX may take permitted protective steps pending an ownership dispute, including transfer restrictions, wallet or security flags, evidence requests, activity suspension or record preservation. IDSX does not decide title requiring a court or competent body.

30. INTERIM PROTECTIVE MEASURES

A Complaint or Dispute does not prevent permitted interim action to protect investors or assets, prevent unauthorised transfers, preserve evidence, maintain orderly trading and integrity, or comply with law. Interim action is not a final decision.

31. CONFIDENTIALITY

Handle matters confidentially, while allowing disclosures reasonably needed for investigation, professional advice, IDSX functions, legal compliance, authority cooperation, market integrity or other authorised purposes.

32. PRIVACY AND DATA PROTECTION

Handle personal information under applicable privacy law. Collect, use and disclose only information reasonably necessary for the relevant purpose.

33. RECORDKEEPING

IDSX and participants must keep appropriate records of receipt, parties, issues, transactions, evidence, communications, investigation, findings, outcomes, remediation and closure for periods required by law and IDSX Rules.

34. COMPLAINT MONITORING

Participants should review complaint data for recurring issues, control weaknesses, operational failures, conduct, disclosure, technology, Client Asset risks and systemic concerns. Material patterns must be escalated and remediated.

35. REPORTING TO IDSX

IDSX may require reports on complaint volumes, categories, unresolved or material cases, resolution times, remediation and recurring issues, in a specified form and frequency.

36. RETALIATION PROHIBITED

Participants must not improperly disadvantage, intimidate or retaliate against good-faith Complainants or persons assisting IDSX. This does not prevent legitimate action for unrelated misconduct.

37. FALSE OR ABUSIVE COMPLAINTS

IDSX may act on knowingly material falsehoods, fraud or persistent abuse. A complaint is not abusive merely because it fails or IDSX disagrees.

38. RELATIONSHIP WITH DISCIPLINARY PROCEEDINGS

Potential breaches may be referred under IDSX Disciplinary & Enforcement Measures. Complaint and disciplinary processes are separate; a Complainant does not become a disciplinary party solely by complaining.

39. NO AUTOMATIC SUSPENSION OF OBLIGATIONS

Filing does not suspend settlement, payment, disclosure, Market Maker, compliance or other IDSX or legal duties. Duties continue unless a lawfully authorised person directs otherwise. IDSX may impose permitted temporary protections for investors, Client Assets, orderly trading or integrity.

40. COSTS OF COMPLAINTS AND DISPUTES

IDSX ordinarily does not charge investors simply to submit a Complaint. Separate process costs follow that process' rules; each party bears its own costs unless agreed or determined otherwise. Applicable law on cost and access remains effective.

41. MEDIATION AND AGREED RESOLUTION

Parties may negotiate, mediate or agree another resolution. IDSX may encourage this for commercial matters without material integrity or urgent risks, but need not mediate. Private settlement does not bar IDSX investigation or lawful reporting.

42. ARBITRATION AND COURT PROCEEDINGS

These Rules do not prevent arbitration, court or other lawful proceedings. IDSX may continue or pause review, take interim steps, preserve records, cooperate lawfully or address separate rule compliance. External cases do not bar market-protection action.

43. REVIEW OF IDSX DECISIONS

Where Rules provide review, requests must identify the decision, grounds, evidence and requested outcome. Scope follows applicable Rules and should, where practicable, be independent. Filing does not suspend a decision unless IDSX or law so provides; no new review right is created.

44. COMPLIANCE AND ENFORCEMENT

Non-compliance may breach IDSX Market Rules. IDSX may require responses, corrections, Client remediation, process improvements, reporting, conditions or restrictions; refer discipline; suspend or terminate participation where permitted; or refer suspected unlawful conduct. It considers seriousness, affected persons, loss, integrity, intent, recurrence, cooperation, remediation and history. A Complaint alone does not require discipline.

45. INTERACTION WITH APPLICABLE LAW

These Rules do not replace or limit legal rights, duties or remedies. IDSX, Issuers and participants remain responsible for applicable complaint, external resolution, investor protection, fair dealing, Client Asset, disclosure, privacy, records, reporting and court or arbitration requirements. Mandatory law prevails in conflict. Nothing restricts regulatory complaints or lawful proceedings, waives statutory rights, assigns IDSX private rights beyond its authority or prevents oversight and enforcement. Compliance with these Rules alone does not establish legal compliance. IDSX may amend arrangements as needed for law or fair market processes.