Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:2:p7
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 2 (pt 7/22)
Character Range: 450031–452963

the purchase;";

  (b)    by adding at the end of paragraph (2)(a) "and";

    (c)     by inserting after paragraph (2)(b) the following word and paragraph:

            "and (ba) if a transfer of the securities pursuant to the purchase would be an SCH-regulated transfer—the other dealer has not done all things that that dealer is required to do under the SCH business rules to effect a transfer of the securities pursuant to the purchase; and";

    (d)    by inserting in paragraph (2)(c) "if paragraph (ba) does not apply—" before "settlement";

    (e)     by omitting from subsection (2) all the words after "allow the claim";

   (f) by adding at the end the following subsections:

      "(3) If:

         (a)     SEGC allows under subsection (2) a claim in respect of a purchase of securities; and

         (b)     a transfer of the securities pursuant to the purchase would be an SCH-regulated transfer;

     SEGC must, subject to section 952A, transfer to the claimant securities of the same kind and number as the first-mentioned securities.

      "(4) If:

         (a) SEGC allows under subsection (2) a claim in respect of a purchase of securities; and

       (b) subsection (3) does not apply;

     SEGC must, subject to section 953, supply to the claimant settlement documents in relation to the purchase.".

Effect of novation, under business rules, of agreement for purchase

136. Section 950A of the Corporations Law is amended by omitting from paragraph (3)(b) "participating exchange" and substituting "settlement authority".

Claim by selling client in respect of default by selling dealer

  137. Section 951 of the Corporations Law is amended:

   (a) by inserting before paragraph (1)(a) the following paragraph:

           "(aa) if a transfer of the securities concerned pursuant to the sale would be an SCH-regulated transfer—the person:

              (i) in a case to which subparagraph (ii) does not apply—has done all things necessary to enable the dealer to do all things that the dealer is required to do under the SCH business rules to effect a transfer of the securities pursuant to the sale; or

               (ii) if the dealer has been suspended by the participating exchange concerned, or the dealer's status as an SCH participant has been suspended under the SCH business rules, and that suspension has not been removed—has done, or is ready, willing and able to do, all things necessary to enable the dealer to do all things that the dealer is required to do under the SCH business rules to effect a transfer of the securities pursuant to the sale; and";

     (b)    by inserting in paragraph (1)(a) "if paragraph (aa) does not apply—" before "the person";

     (c)     by inserting after paragraph (3)(a) the following word and paragraph:

    "and (aa) if a transfer of the securities pursuant to the sale would be an SCH-regulated transfer—the claimant:

                (i)