Strengthened insider trading prohibitions for water markets decisions
From 1 July 2026 it will be prohibited for an individual who is aware of upcoming water announcement information to take certain actions. These actions include trading based on that information or communicating about water announcement information to someone who might trade based on it.
Water announcement information includes:
- a water markets decision that has not yet been announced
- sensitive details about a water markets decisions before it is made public.
Exceptions include:
- if an IIO approves or facilitates a specific trade or transfer on behalf of a member or customer
- if a Commonwealth or Basin State agency has arrangements in place to ensure that there is an information barrier between staff who are aware of the sensitive information and other staff who are making trading decisions.
New general insider trading prohibition
Starting 1 July 2026, a new prohibition will apply to anyone who is aware of water market-sensitive information that is not captured by the water markets decisions insider trading framework.
A person who is aware of this type of information cannot:
- trade based on that information
- share it with someone likely to trade on it.
Exceptions include:
- if the information is about their own business or trading
- if a water market intermediary is trading for a client
- if a client discusses their trading/business with their intermediary
- if a government agency or IIO acts according to a previously announced trading strategy
- if the law requires the action to be taken
- if an IIO approves or facilitates a specific trade or transfer on behalf of a member or customer
- if a Commonwealth or Basin State agency has arrangements in place to ensure that there is an information barrier between staff who are aware of the sensitive information and other staff who are making trading decisions.
New market manipulation prohibitions
Starting 1 July 2026, new laws will make it illegal to:
- manipulate the price of eligible tradeable water rights
- fake trading activity to mislead others
- make false offers or trades that affect market prices.
It will also be against the law to spread information about these activities.
Regulator
The Australian Competition and Consumer Commission (ACCC) will monitor and enforce compliance with these insider trading and market manipulation provisions.