Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p79
Version: federal_register_of_legislation:F2024C01107
Segment Type: other
Provision Reference: 
Character Range: 211993–214962

liability of the Market Participant under the Relevant Commitment; and
(ii)       the underwriting risk factor specified in Table A5.4.1, Annexure 5 to Schedule 1A; and
(iii)     the relevant standard method Position Risk Factor specified in Part A5.1, Annexure 5 to Schedule 1A; and
(b)       commences on the first date upon which funds can be accepted by the Market Participant for the issue of the Financial Instrument that is the subject of the Relevant Commitment; and
(c)        ceases once the Relevant Commitment becomes unconditional.

A4.1.3 Underwriting—Counterparty risk
(1) A Market Participant that makes an Underwriting Commitment must:
(a)        treat as a Positive Credit Exposure any amount outstanding from a client (Buying Client) that has made an application to buy the Financial Instruments the subject of the Underwriting Commitment, as at the closing date for applications;
(b)       calculate in accordance with Annexure 1 to this Schedule a counterparty risk amount on that Positive Credit Exposure, from the time that the Market Participant pays the issuer until the time the Buying Client pays the Market Participant; and
(c)        for the purposes of calculating a counterparty risk amount under paragraph (b), use the "cost" or "subscription" price as the market value of the Financial Instruments if the market value is not known.
(2) The Market Participant may, for the purposes of calculating a counterparty risk amount under paragraph (1)(b), reduce the amount of its Positive Credit Exposure by any part of that amount that has been sub underwritten under a Sub Underwriting Commitment.

A4.1.4 Underwriting—Position risk
(1) A Market Participant that makes an Underwriting Commitment or Sub Underwriting Commitment (each a Relevant Commitment) must:
(a)        treat as a principal position any shortfall in applications to buy the Financial Instruments the subject of the Relevant Commitment, as at the closing date for applications; and
(b)       calculate in accordance with Annexure 3 to Schedule 1A a position risk amount in respect of that principal position, from the time of the closing date for applications; and
(c)        for the purposes of calculating a position risk amount under paragraph (b), use the "cost" or "subscription" price as the market value of the Financial Instruments if the market value is not known.
(2) The Market Participant may, for the purposes of calculating a position risk amount under paragraph (1)(b), reduce the amount of its principal position by any part of that amount that has been sub underwritten under a Sub Underwriting Commitment.

Annexure 5 to Schedule 1A: Tables
Note: There is no Table A5.1.3, 5.1.4 or 5.1.5 in this Annexure

Part A5.1 Position Risk
Table A5.1.1: Equity Position Risk Factors—Recognised Market Index and Non Recognised Market Index
Position In:     Underlying
                 Recognised Market Index   Non Recognised Market Index
                 (see Table