Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p30
Version: federal_register_of_legislation:F2024C01107
Segment Type: other
Provision Reference: 
Character Range: 79896–82698

arrangement only with the prior approval of ASIC.
(7) ASIC will not withhold its approval under subrule (6) if in the opinion of ASIC:
(a)        the Market Participant's Liquid Capital divided by its Total Risk Requirement is capable of continuing to be greater than 1.2 on repayment; and
(b)       the Market Participant's Core Capital is capable of continuing to be equal to or greater than the amount required under Rule S1A.2.1(b).
(8) In forming an opinion as to whether a Market Participant is capable of continuing to meet the requirements in paragraphs (7)(a) and (b), ASIC may consider matters such as:
(a)        the state of the overall market and the trend of the individual Market Participant's share of that market;
(b)       the ability of the Market Participant to continue as a going concern for a period that may exceed 31 days;
(c)        any waivers that exist at the time of the request; and
(d)       the existence of any outstanding litigation.

S1A.2.4A Excluded Assets
(1) Subject to subrule (2), where a Market Participant has an asset due from one entity (which would ordinarily be treated as an Excluded Asset) which is linked to an offsetting liability payable to another entity, the Market Participant may net the asset and liability so that only the net amount (if positive) is reported as an Excluded Asset.
(2) The Market Participant may only net an asset with a liability and report the net amount as an Excluded Asset under subrule (1) if either subrule (2A) or (2B) applies.
(2A) This subrule applies where:
(a)        the asset is a right-of-use asset and the liability is a lease liability that corresponds with the right-of-use asset for the same lease; and
(b)       the right-of use asset is netted only with the corresponding lease liability;
Note: The effect of paragraph (b) is that right-of-use assets of multiple leases cannot be aggregated and then offset with the aggregate of lease liabilities. The netting must be done on individual leases basis.
(c)        the Market Participant reports the right-of-use asset and lease liability on a gross basis in the balance sheet section of the Monthly Risk-Based Return required by Rule 9.2.3;
(d)       the Market Participant reports each right-of-use asset and the corresponding lease liability in the "Leases" section in the balance sheet details section of the Monthly Risk-Based Return required by Rule 9.2.3;
(e)        the Market Participant reports the sum of the net amounts of each right-of-use asset and the corresponding lease liability as an Excluded Asset "other prescribed asset" in the "Core Capital, Liquid Capital, Liquid Margin and Ratio" section of the Monthly Risk-Based Return required by Rule 9.2.3; and
(f)        the Market Participant includes the following details in the "Additional