ASIC Raises Low Volume Financial Market Threshold to $2.5M

The Australian Securities and Investments Commission (ASIC) has remade a legislative instrument that exempts low-volume financial markets from the requirement to hold an Australian market licence, raising the relevant transaction value threshold from $1.5 million to $2.5 million.

The increase reflects factors including inflation, with ASIC noting the threshold had not changed since 2016.

ASIC Corporations (Low Volume Financial Markets) Instrument 2026/756 (ASIC Instrument 2026/756) continues the relief provided under ASIC Corporations (Low Volume Financial Markets) Instrument 2016/888. The new instrument is scheduled to sunset on 1 October 2031.

Under the Legislation Act 2003, all legislative instruments are automatically repealed, or sunset, after 10 years, unless ASIC takes action to preserve them.

A financial market is considered a low-volume financial market if, in the 12-month period commencing on the date the financial market was named on ASIC’s register or any subsequent 12-month period:

• no more than 100 completed transactions are entered into, and

• the total value of those transactions does not exceed $2.5m.