ASX’s guidance for announcements about market sensitive contracts remains current, i.e. ASX expects counterparties should be named in announcements regarding market sensitive contracts. However, ASX has recently released an update revising its approach, allowing an entity to exercise discretion whether or not to name a counterparty in a market announcement about a market sensitive contract.

ASX understands that there are situations where a counterparty/customer has “strong and legitimate” reasons for not wanting to be named in a market announcement. In certain limited situations, where ASX is satisfied that the counterparty/customer has strong and legitimate reasons for not wanting to be named in a market announcement, ASX may accept a description of the counterparty/customer that provides enough detail for the market to assess their standing and creditworthiness without revealing their name.

ASX will generally not require disclosure of a counterparty/customer in an announcement concerning a market sensitive contract or expect an entity to consult with ASX before lodging the announcement, if the announcement contains the following:

Monitoring and Enforcement

ASX may take enforcement action in relation to an announcement where the counterparty is not named if:

1. the ASX is concerned that the announcement is a ‘ramping announcement’ (an announcement with the purpose of inflating the entities’ security price),¹ or is otherwise incomplete, inaccurate, or misleading;
2. there is material movement in the entity’s security price following the announcement, and the announcement failed to contain all material information, as set out in the table above;
3. there is a material movement in the entity's security price following a leak of, or speculation about, the identity of the counterparty; or
4. there is a material movement in the entity’s security price after the entity makes an announcement that discloses the identity of the counterparty for the first time.

In the first three situations referred above, ASX may take steps to halt or suspend trading in the entity's securities until more information about the contract is released. In those scenarios, ASX may issue a direction to the entity to name the counterparty/customer in a market announcement.

Dentons can assist with any queries you may have in relation to ASX disclosure requirements. Please contact Kym Livesley, Urvashi Seomangal or your usual member of the Dentons Corporate team for further information.

1. Australian Securities Exchange Limited (ASX), 2024, ASX Listing Rules Guidance Note 8, rule 7.10, <https://www.asx.com.au/content/dam/asx/rules-guidance-notes-waivers/asx-listing-rules/guidance-notes/gn08-continuous-disclosure.pdf>.