Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p60
Version: federal_register_of_legislation:F2024C01107
Segment Type: other
Provision Reference: 
Character Range: 162679–165366

Participant must take the following into account when calculating a position risk amount for a principal position in units in a Hybrid ETF classified as Equities:
(a)        there is no difference between the primary market and secondary market for the purposes of calculating position risk amounts;
(b)       principal positions in Hybrid ETFs commence at T0 and the underlying risk variable is the market price of the Hybrid ETF unit;
(c)        a Hybrid ETF cannot be broken down into any notional positions in the underlying;
(d)       the Position Risk Factors to be applied are set out in Table A5.1.1 in Annexure 5 to Schedule 1A; and
(e)        if the Market Participant is unlikely to be able to liquidate its position in a Hybrid ETF within 31 days, taking into account factors including the size of its position and the volume of that Hybrid ETF traded in the market, it must treat the position as an Excluded Asset and exclude the market value of that position from Liquid Capital.

A3.1.2E Treatment—Other Managed Funds
A Market Participant must take the following into account when calculating a position risk amount for a principal position in units in an Other Managed Fund classified as Equities:
(a)        principal positions in Other Managed Funds commence at T0 and the underlying risk variable is the market price of the Other Managed Fund unit;
(b)       the Other Managed Fund cannot be broken down into any notional positions in the underlying;
(c)        the Position Risk Factors to be applied are set out in Table A5.1.1 in Annexure 5 to Schedule 1A;
(d)       if the Market Participant is unlikely to be able to liquidate its position in an Other Managed Fund within 31 days, taking into account factors including the size of its position relative to the size of the fund, it must treat the position as an Excluded Asset and exclude the market value of that position from Liquid Capital; and
(e)        if a daily price cannot be obtained and/or if the numbers of units on issue cannot be determined on a daily basis, the position must be treated as an Excluded Asset as it would not be possible to value the investment in accordance with the requirements of Rule S1A.2.8.

A3.1.2F Exchange traded CFDs
A Market Participant must take the following into account when calculating a position risk amount for a principal position in an exchange traded CFD classified as an Equity Derivative:
(a)        principal positions in exchange traded CFDs commence at T0;
(b)       the Position Risk Factors to be applied are set out in Table A5.1.1 in Annexure 5 to Schedule 1A;
(c)        if the Market Participant is unlikely to be able to liquidate its position in an