Participants are advised that, following BHP shareholder approvals on Thursday 20 January 2022 and pending final regulatory and Court approvals, BHP will unify its corporate structure from two parent companies into one company, BHP Group Limited.

After the close of trading on Friday, 28 January 2022, there will be a rebalance in a number of indices that include BHP (for example, see the S&P Dow Jones Indices notice here).

ASX expects an increase in trading activity in BHP and other securities within the same benchmarks, both throughout the day and in particular at the Closing Single Price Auction (CSPA) on Friday, 28 January 2022.

Participants should be aware of the possibility of increased volatility, particularly at the CSPA, and take necessary steps to notify their clients of the need to manage their orders so as to avoid unnecessary price impact. Orders should be entered as early as possible for the CSPA in order to allow the market sufficient time to take any order imbalances into consideration.

Participants are reminded of their obligations under the ASX Operating Rules and ASIC Market Integrity Rules (Securities) in relation to the maintenance of a fair and orderly market.

ASX has considered the likelihood of increased value and number of transactions and has made the following preparations:

• ASX regularly tests the capability of its systems for high volume events such as this and has undertaken further volume stress testing for the CSPA
• ASX’s post-trade infrastructure was upgraded following the rapid and very large increase in trading activity in March 2020 (see ASX Notice 0925.21.07) and has been tested successfully at 50% more volume than the previously observed peak of ~7m trades in one day
• Market Operations will be monitoring transaction numbers throughout the day and during the CSPA
• ASX Clear and ASX Settlement can take certain actions in the event of significant trade count volumes, as previously highlighted in ASX Notice 1164.20.09
• ASX support staff are actively engaging with Participants and industry stakeholders for awareness and support
• Given the size of trading activity expected, ASX has, in some cases, made arrangements for pre-funding of margin requirements, and is directly contacting affected Participants
• We have published guidance notices on related ETO and BHP listing unification information (see ASX Notice 0040.22.01)
• Information has been provided on ASX.com.au

What do I need to do by when?

• Customer should ensure all their systems and processes are prepared for the expected higher volumes and reach out to their Technical Account Managers or Trading Operations for further information.
• Review additional information via the links provided in this notice.

Need more information?

Issued by

Ben Jackson

General Manager,
Market Operations

Contact information

Trading Operations
+61 (02)  9256 0677  | 1300 655 560
tradingoperations@asx.com.au

Customer Technical Support
+61 (02) 9227 0372 | 1800 663 053
cts@asx.com.au

Disclaimer