Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p39
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
Provision Reference: 
Character Range: 104138–107105

(2)(a) and (b).

3.1.4A Information to be given to a client: Settlement arrangements
(1) Before accepting an order from a person (the Client) to enter into a Market transaction, if a Market Participant:
(a)        is not a Settlement Participant who is permitted under Settlement Rules to settle the Market transaction; or
(b)       is a Settlement Participant who is permitted under the Settlement Rules of the relevant Settlement Facility to settle that Market transaction, but has an arrangement with a Settlement Agent to settle that Market transaction, and such transaction is settled under the arrangement,
the Market Participant must give the Client a document which clearly discloses the settlement arrangements in place for that Market transaction, including, without limitation, any information required by subrule (2).
(2) The written disclosure document referred to in subrule (1) must include:
(a)        the name, principal telephone number and principal business address of the Settlement Agent which settles the Market transactions of the Market Participant; and
(b)       if, under the settlement arrangements each or any of the following apply:
(i)         notwithstanding that the Market transaction may have been entered into on the Client's behalf, the Market Participant carries the settlement obligations for all Market transactions of the Market Participant, including those of the Client, and must settle as principal with the relevant counter-party;
(ii)       the Client owes obligations to the Market Participant in relation to the settlement of Market transactions;
(iii)     the Market Participant has rights against the Client in the event that:
(A)       the Client fails to pay the amounts due in respect of Market transactions; or
(B)       the Client fails to fulfil its settlement obligations in respect of Market transactions,

        statements to that effect.
(3) A Market Participant is not required to comply with subrule (1) in relation to a Client where, at the time the obligation to comply with subrule (1) would arise, all of the following are satisfied:
 1.         the Market Participant has already given the Client a document that complies with subrules (1) and (2) with respect to the settlement arrangements in place for the Client's transactions on a Market;
(b)       the Market Participant proposes to rely on the settlement arrangements disclosed in the document referred to in paragraph (a) for the purposes of settling the Client's transactions on the Market referred to in subrule (1); and
(c)        the Market Participant notifies the Client in writing of any material change to the settlement arrangements referred to in paragraph (a), including, without limitation, any changes to the matters referred to in paragraphs (2)(a) and (b).

3.1.7 Minimum terms of Client Agreement for Options Market Contracts
(1) Before entering into a Market transaction in respect of an Options Market Contract on a Market