Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p6
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 6/43)
Character Range: 715670–718490

(b) provide for an entity that starts, or stops, meeting a threshold referred to in subparagraph 7.5A.61(1)(a)(ii), 7.5A.62(1)(a)(ii) or (b)(iv) to be taken to meet, or not to meet, the threshold for transitional purposes specified by the rules.

7.5A.61  Meaning of Australian clearing entity
 (1) An entity is an Australian clearing entity, in relation to a derivative transaction to which it is a party otherwise than in a representative capacity, if:
 (a) the entity is an Australian ADI, or a financial services licensee, that:
 (i) is incorporated or formed in Australia; and
 (ii) holds $100 billion or more in total gross notional outstanding positions otherwise than in a representative capacity; or
 (b) the entity is any other entity that:
 (i) is incorporated or formed in Australia; and
 (ii) has, in accordance with any derivative transaction rules, opted to be treated, for the purposes of those rules, as an Australian clearing entity in relation to derivative transactions to which the entity is a party otherwise than in a representative capacity.
 (2) An entity is an Australian clearing entity in relation to a derivative transaction to which it is a party in a representative capacity in the circumstances set out in derivative transaction rules.

7.5A.62  Meaning of foreign clearing entity
 (1) An entity is a foreign clearing entity, in relation to a derivative transaction to which it is a party otherwise than in a representative capacity, if:
 (a) the entity is an ADI, or a financial services licensee, that:
 (i) is incorporated or formed outside Australia; and
 (ii) holds $100 billion or more in total gross notional outstanding positions otherwise than in a representative capacity; or
 (b) the entity:
 (i) is incorporated or formed outside Australia; and
 (ii) in this jurisdiction, provides financial services relating to derivatives to wholesale clients only; and
 (iii) is exempt under the Act (including these Regulations, or another instrument made under or for the purposes of the Act) from the requirement to hold a financial services licence for those financial services; and
 (iv) is an entity whose activities relating to derivatives are regulated by an overseas regulatory authority; and
 (v) holds $100 billion or more in total gross notional outstanding positions otherwise than in a representative capacity; or
 (c) the entity is any other entity that:
 (i) is incorporated or formed outside Australia; and
 (ii) has, in accordance with any derivative transaction rules, opted to be treated, for the purposes of those rules, as a foreign clearing entity in relation to derivative transactions to which it is a party otherwise than in a representative capacity.
 (2) An entity is a foreign clearing entity in relation to a derivative transaction to which it is a party in a