Document ID: chunk:federal_register_of_legislation:F2020L01338:body:0:p3
Version: federal_register_of_legislation:F2020L01338
Segment Type: other
Provision Reference: 
Character Range: 5446–8097

trading account; and
           (b) any other money:
              (i) held both:
                  (A) in the client money account for the benefit of the retail client; and
                  (B) in relation to the CFD trading account; and
              (ii)  that was paid into the client money account by the CFD issuer in relation to a dealing in a CFD by the retail client; and
           (c)  the value of derivative retail client property held for the benefit of the retail client and in relation to the CFD trading account; and
           (d)  to the extent not referred to in (a) or (b)—the unrealised profits (if any) of the retail client less the unrealised losses (if any) of the retail client for all of the retail client's open CFDs that are connected to the CFD trading account.
           Note: The amount referred to in paragraph (d) and the amount of net equity may be negative.
open in relation to a CFD means a CFD that has not been terminated.
terminate, in relation to a derivative, includes the derivative being closed out.
underlying, in relation to a derivative, means any thing (of any nature whatsoever and whether or not deliverable) other than the derivative, including, for example, one or more of the following:
           (a)   an asset;
           (b)   a rate (including an interest rate or exchange rate);
           (c)   an index;
           (d)   a commodity.
       Note:  Unless a contrary intention appears, a term that is defined in section 761A of the Act has the same meaning in this instrument: see sections 761A and 761H of the Act.
(2) For the purposes of this instrument, a reference to offering to issue a CFD includes a reference to inviting an application for the issue of the CFD.

       Part 2—Order

5 Conditional prohibition on dealing in CFDs in relation to retail clients
Conditional prohibitions
(1) A CFD issuer must not issue a CFD to a retail client except in accordance with the conditions specified in subsections 7(2) to (5).
(2) A person who carries on a business of arranging for the issue of CFDs must not arrange for the issue of a CFD by a CFD issuer to a retail client except in accordance with the conditions specified in subsections 7(2) to (5).
(3) A person who carries on a business of applying for, or acquiring, CFDs as an agent must not apply for, or acquire, a CFD from a CFD issuer on behalf of a retail client except in accordance with the conditions specified in subsections 7(2) to (5).
(4) A person who carries on a business of arranging for persons to apply for, or acquire, CFDs must not arrange for a retail client to apply for, or acquire, a CFD from a CFD issuer