PURPOSE
This document establishes the structure, status and priority of the IDSX Market Rules and related regulatory materials. It provides a clear hierarchy; distinguishes binding Rules from procedures, standards and guidance; explains resolution of inconsistencies; clarifies authority for subordinate requirements; and promotes consistent interpretation and administration.
APPLICATION
This document applies to IDSX General Rules, Specific Rules, Procedures, Standards, Notices, Directions, Guidance, forms and application requirements, and other documents forming part of the IDSX market framework. All materials must be interpreted consistently with Applicable Law and the General Rules.
RULEBOOK HIERARCHY
The IDSX framework follows this order of priority: 1. Applicable Law and Regulatory Requirements 2. IDSX General Rules 3. Specific Market Rules 4. Binding Procedures and Standards 5. Regulatory Notices and Directions 6. Guidance, Explanatory Materials and Forms
LEVEL 1 – APPLICABLE LAW AND REGULATORY REQUIREMENTS
Applicable Law has the highest priority and includes, where relevant, legislation, regulations, regulatory instruments, licence conditions, binding regulatory requirements, court orders, statutory directions and other legally enforceable obligations. No IDSX Rule, Procedure, Standard, Notice, Direction or Guidance may override Applicable Law. Applicable Law prevails in any conflict.
LEVEL 2 – GENERAL RULES
The General Rules form the foundation of the IDSX market framework. They establish the purpose and scope of the Rules; persons subject to them; general obligations; IDSX powers and functions; market-integrity principles; supervisory and enforcement powers; interpretation principles; and authority for Specific Rules and subordinate requirements. Specific Rules and subordinate materials must be interpreted consistently with the General Rules.
LEVEL 3 – SPECIFIC MARKET RULES
Specific Rules govern particular areas and may include Listing Rules, Continuing Listing Obligations, Disclosure Rules, Broker Rules, Sponsor Rules, Market Maker Rules, Underwriter Rules, Trading Rules, Clearing and Settlement Rules, Digital Securities Rules, Wallet and On-chain Transfer Rules, Market Surveillance Rules, Jurisdiction Admission Rules, disciplinary and enforcement rules, and other rules designated by IDSX. A Specific Rule supplements the General Rules.
SPECIFIC RULE PRECEDENCE
Where a Specific Rule addresses a matter in greater detail, it applies to that subject. It displaces the General Rules only where it expressly provides otherwise or necessarily modifies a general provision for that subject. A Specific Rule must not be interpreted as overriding fundamental obligations under the General Rules unless expressly authorised.
LEVEL 4 – PROCEDURES
IDSX may issue binding Procedures to implement or administer the Rules, including application and admission processes, filings, operational workflows, trading, Settlement, technical onboarding, reporting, compliance submissions and investigations. A Procedure must be authorised by a Market Rule, consistent with the Rules, limited to operational details needed to implement a Rule, and must not create a substantive obligation outside the authority granted by the Rules.
LEVEL 4 – STANDARDS
IDSX may issue binding technical, operational, security, data or infrastructure Standards, including connectivity, API, cybersecurity, data formats, Digital Securities, Wallet, registry interface, Settlement messaging, resilience and reporting requirements. Standards must remain consistent with the Rules and within the authority they grant.
PROCEDURES AND STANDARDS DO NOT AMEND MARKET RULES
A Procedure or Standard may implement, but may not amend, repeal or materially alter, a Market Rule. If inconsistent, the Market Rule prevails. IDSX must amend the Rule itself where a substantive change to rights, obligations or regulatory responsibilities is required.
LEVEL 5 – REGULATORY NOTICES
IDSX may issue Notices about market administration or operation, including Rule amendments, operational changes, effective dates, interpretations, regulatory developments, temporary arrangements, compliance expectations or other market-wide information. A Notice is binding only to the extent it implements authority in the Rules, is a valid Direction, or is expressly designated binding.
DIRECTIONS
Where authorised, IDSX may direct a person subject to the Rules to take or cease specified action; provide information; correct a failure; restrict activity; suspend use of a system; address operational or market-integrity risk; or comply with another authorised requirement. A Direction must remain within authority granted by the Rules and Applicable Law.
TEMPORARY DIRECTIONS
Where reasonably necessary to protect market integrity, investors, orderly trading, system stability, Settlement integrity or compliance with Applicable Law, IDSX may issue temporary Directions where authorised. Temporary Directions must not substitute for a permanent Rule amendment where an ongoing requirement is intended.
LEVEL 6 – GUIDANCE
IDSX may issue non-binding explanatory notes, examples, regulatory expectations, application or interpretative guidance, technical explanations, FAQs and other materials. Guidance creates no independent binding obligation unless the requirement is in a Market Rule, Procedure, Standard or valid Direction.
EFFECT OF GUIDANCE
A person is not in breach solely for not following Guidance. Guidance may explain how IDSX is likely to interpret or administer a Rule. A person taking another approach remains responsible for demonstrating compliance with the underlying Rule.
FORMS AND APPLICATION MATERIALS
IDSX may prescribe forms, templates, questionnaires and application materials to administer the Rules. They may request necessary information but must not impose a substantive obligation beyond that authorised by the Rules.
POLICIES
IDSX may maintain internal policies for regulatory, operational and governance functions, including conflicts, admission decisions, surveillance, investigations, enforcement, technology risk, resilience, reporting and governance. Internal policies create no external rights unless expressly incorporated into the Rules.
RELATIONSHIP BETWEEN GENERAL AND SPECIFIC RULES
The General Rules apply throughout the framework and Specific Rules apply in addition. A more detailed or stringent Specific Rule governs its activity; the General Rules continue to apply to matters not displaced.
CONFLICT BETWEEN SPECIFIC RULES
Two applicable Specific Rules should, where reasonably possible, be interpreted consistently. If a genuine conflict remains, the most specific Rule generally applies; express precedence provisions govern; a Rule necessary to comply with Applicable Law prevails; and IDSX may issue an interpretation or amend a Rule to resolve the conflict.
CONFLICT BETWEEN RULES AND PROCEDURES
If a Market Rule conflicts with a Procedure, Standard, Regulatory Notice or Guidance, the Market Rule prevails.
CONFLICT BETWEEN PROCEDURES AND STANDARDS
If a Procedure and Standard appear inconsistent, IDSX will determine which governs having regard to the Rule authorising each, the subject matter, purpose and Applicable Law. IDSX may amend either document to remove the inconsistency.
LATER AND EARLIER REQUIREMENTS
A later publication does not automatically override an earlier document. It does so only if it has equal or higher status, expressly replaces or amends the earlier requirement, or cannot reasonably operate alongside it and was validly issued for that purpose.
GENERAL AND SPECIFIC PROVISIONS
A specific provision for a defined circumstance generally prevails over a general provision on the same matter only as far as needed to resolve the inconsistency. This principle must not avoid a broader obligation that can operate consistently.
RULE AMENDMENTS
Substantive amendments to rights, obligations, regulatory responsibilities or market structure must follow the applicable Rule amendment process. Guidance, forms, FAQs, operational notices or technical documentation must not substitute for a Rule amendment where one is required.
EFFECTIVE DATES
IDSX may specify the effective date of a Rule, amendment, Procedure, Standard, Notice or other binding requirement. Unless stated otherwise, it applies from the effective date published by IDSX.
TRANSITIONAL ARRANGEMENTS
Where immediate implementation is not reasonably practicable, IDSX may provide delayed implementation, phased compliance, temporary exemptions, migration periods, grandfathering or additional reporting. Any arrangement must comply with Applicable Law and authority in the Rules.
EXEMPTIONS AND WAIVERS
IDSX may grant an exemption or waiver only where the Rules permit it, it is consistent with Applicable Law, investor protection and market integrity are not materially compromised, and IDSX conditions are met. It may apply generally, to a class, transaction, Issuer or Participant.
CONDITIONS
Where authorised, IDSX may impose conditions concerning admission, participation, trading, investor access, disclosure, Digital Securities, Settlement, risk controls, reporting or other matters under the Rules.
INTERPRETATIVE AUTHORITY
IDSX may interpret the Rules, consistently with Applicable Law and their wording and purpose. An interpretation cannot amend a Rule without the applicable amendment process and remains subject to a contrary determination by a competent court or Regulatory Authority.
MARKET RULE REGISTER
IDSX may maintain a public register or repository of current Rules, Procedures, Standards, Notices, Guidance, effective dates, amendment histories and superseded materials. The version identified as current applies subject to transitional arrangements.
VERSION CONTROL
IDSX documents may identify title, version, publication and effective dates, amendment history, status and related Rules so users can identify applicable requirements.
AUTHORITATIVE LANGUAGE
Where a document is published in multiple languages, the English version is authoritative unless IDSX expressly provides otherwise. Translations are for accessibility and convenience; English prevails in case of inconsistency.
PUBLICATION
IDSX will ordinarily publish generally applicable Rules and binding requirements on its official website or another designated channel. A binding requirement may also be communicated directly to a person or limited class to whom it applies.
ACCESSIBILITY OF RULES
IDSX intends the Rules to be reasonably accessible to Issuers, Applicants, Participants, investors, advisers, regulators and other market users. The Rulebook should help users identify requirements relevant to their role or activity.
NO CONTRACTING OUT
A person subject to the Rules may not avoid an applicable Rule by private agreement. A private contract does not override Applicable Law, the IDSX Rules or a valid Direction.
INCORPORATION BY REFERENCE
A Rule may incorporate another IDSX document by reference where appropriate. Binding incorporation must be clear, the document identifiable, its binding status apparent, and amendments made under the process applicable to its status.
PRINCIPLES OF INTERPRETATION
The Rulebook must be interpreted to support compliance with Applicable Law; fair, orderly and transparent markets; market integrity; investor protection; clear and enforceable obligations; proportionality; operational certainty; and consistent regulatory administration.
STATUS OF THIS DOCUMENT
This document forms part of the proposed IDSX market framework and has been prepared for regulatory discussion, legal review and market design purposes. IDSX is currently a proposed financial product market and has not commenced operation as a licensed financial product market. The hierarchy and structure described remain subject to legal and regulatory review and may be amended before operations commence. Nothing in this document represents that IDSX, its proposed Rulebook, hierarchy, Procedures, Standards or operating arrangements have been approved, authorised or endorsed by the Financial Markets Authority or any other Regulatory Authority.