Document ID: chunk:federal_register_of_legislation:C2004A04041:section:1990:p126
Version: federal_register_of_legislation:C2004A04041
Segment Type: section
Provision Reference: s 1990 (pt 126/212)
Character Range: 332705–335603

who".

Paragraphs 1255 (a), (b) and (c):

  Omit "corporation", substitute "licensee".

Section 1256:

  Repeal the section, substitute:

Prohibitions where dealing precluded

"1256. (1) A person must not, while precluded from dealing in a futures contract, deal in that futures contract.

"(2) A person who, because of having particular information, is precluded from dealing in a futures contract, must not, while so precluded, communicate the information to another person if the first-mentioned person knows, or ought reasonably to know, that the other person will make use of the information for the purpose of dealing in that futures contract.".

SCHEDULE 1—continued

Section 1258:

  Omit "An eligible", substitute "A".

Section 1259:

  Repeal the section, substitute:

Futures market manipulation

"1259. A person must not, in this jurisdiction or elsewhere, take part in, be concerned in, or carry out, whether directly or indirectly:

     (a) a transaction (whether a dealing in a futures contract or not) that has, is intended to have, or is likely to have; or

     (b) 2 or more transactions (whether any of them is a dealing in a futures contract or not) that have, are intended to have, or are likely to have:

the effect of:

     (c) creating an artificial price for dealings in futures contracts on a futures market in this jurisdiction; or

     (d) maintaining at a level that is artificial (whether or not it was previously artificial) a price for dealings in futures contracts on a futures market in this jurisdiction.".

Section 1260:

  Repeal the section, substitute:

False trading and market rigging

"1260. (1) A person must not, in this jurisdiction or elsewhere, create, cause to be created, or do anything that is calculated to create, a false or misleading appearance:

     (a) of active dealing in futures contracts on a futures market in this jurisdiction; or

     (b) with respect to the market for, or the price for dealings in, futures contracts on a futures market in this jurisdiction.

"(2) A person must not, in this jurisdiction or elsewhere, by any fictitious or artificial transactions or devices, maintain, inflate, depress, or cause fluctuations in, the price for dealings in futures contracts on a futures market in this jurisdiction.

"(3) In determining whether a transaction is fictitious or artificial for the purposes of subsection (2), the fact that the transaction is, or was at any time, intended by the parties who entered into it to have effect according to its terms is not conclusive.".

Section 1261:

  Repeal the section, substitute:

SCHEDULE 1—continued

False or misleading statements etc.

  "1261. A person contravenes this section if the person:

     (a) in this jurisdiction or elsewhere, makes a statement, or disseminates information, that is false or misleading in a material particular and is likely:

         (i) to