Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p40
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
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Character Range: 106856–109727

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 on behalf of a retail client (the Client), a Market Participant must enter into a written agreement with the Client under which:
 1.         the Client and the Market Participant agree on the instruments (the Relevant Derivatives Market Contracts) in which the Market Participant may deal on behalf of the Client;
(b)       the Client acknowledges that the Client has received and read a copy of any current explanatory booklets published by the relevant Market operator in respect of the Relevant Derivatives Market Contracts;
(c)        the Client acknowledges that the Client is acting:
 1.          as principal; or
(ii)       as an intermediary on another's behalf and are specifically authorised to transact the Relevant Derivatives Market Contracts by the terms of:
 1.        a licence held by the Client;
(B)       a trust deed (if the Client is a trustee); or
(C)       an agency contract;
(d)       the Market Participant discloses, and the Client acknowledges:
 1.          that notwithstanding that the Market Participant may act in accordance with the instructions of, or for the benefit of, the Client, any contract arising from any order submitted to the Market, is entered into by the Market Participant as principal;
(ii)       that the Market Participant may, in certain circumstances permitted under the operating rules for the relevant Market or the Corporations Act, take the opposite position in a transaction in the Relevant Derivatives Market Contracts, either acting for another person or on its Own Account;
(iii)     if the Client will or may be required to pay to the Market Participant commissions, fees, taxes or charges in connection with dealings in the Relevant Derivatives Market Contracts for the Client:
 1.        the fact that the Client is required to pay such commissions, fees, taxes and charges; and
(B)       the manner in which the Client will be notified of the rates of such commissions, fees, taxes and charges;
(iv)      that the Market Participant may record telephone conversations between the Client and the Market Participant and if there is a dispute between the Client and the Market Participant, the Client has the right to listen to any recording of those conversations;
(v)       if the Market Participant may refuse to enter into Market transactions for the Client, or limit the Market transactions it enters into for the Client, that the Market Participant will notify the Client of any refusal or limitation as soon as practicable;
(vi)      that the Trading Participant is not required to act in accordance with the Client's instructions, where to do so would