Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p28
Version: federal_register_of_legislation:F2024C01107
Segment Type: other
Provision Reference: 
Character Range: 74559–77554

a period covered by a return required under Part 9.2.
(2) References to dollar amounts are references to Australian dollar amounts.
(3) The Annexures to Schedule 1A form part of Schedule 1A and a reference to Schedule 1A in these Rules includes a reference to those Annexures.

Part S1A.2 Obligations of Market Participants

S1A.2.1 Core Capital, Liquid Capital and Total Risk Requirement
A Market Participant must ensure that its:
(a)        Liquid Capital is at all times greater than its Total Risk Requirement; and
(b)       Core Capital is at all times not less than:
(i)         $500,000 if it is a Participant of a Securities Market; or
(ii)       $1,000,000 if it is a Participant of a Futures Market (regardless of whether it is also a Participant of a Securities Market).

S1A.2.3 Risk requirements and risk amounts

(1) A Market Participant must calculate its Operational Risk Requirement:

(a)        as the sum of:

(i)         the amount of $100,000; and

(ii)       8% of the sum of the Market Participant's:

(A)       Counterparty Risk Requirement;

(B)       Position Risk Requirement; and

(C)       Underwriting and Sub Underwriting Risk Requirement.

(2) A Market Participant must calculate in accordance with Annexure 1 to this Schedule 1A:

(a)        its Counterparty Risk Requirement; and

(b)       a counterparty risk amount for each of its Positive Credit Exposures to a Counterparty for transactions in Financial Instruments referred to in Annexure 1 to this Schedule 1A, except those transactions which relate to Excluded Assets.

(3) A Market Participant must calculate in accordance with Annexure 2 to this Schedule 1A:

(a)        its Large Exposure Risk Requirement; and

(b)       its large exposure risk amount for each:

(i)         Counterparty; and

(ii)       Equity Net Position and Debt Net Position relative to:

(A)       Liquid Capital; and

(B)       an issue or issuer.

(4) A Market Participant must calculate in accordance with Annexure 3 to this Schedule 1A:

(a)        its Position Risk Requirement;

(b)       a position risk amount for all positions in Financial Instruments, Foreign Exchange and Commodities except those positions which are Excluded Assets; and

(c)        a position risk amount for other assets and liabilities which are denominated in a currency other than Australian dollars except for those assets which are Excluded Assets.
(5) A Market Participant must calculate in accordance with Annexure 4 to this Schedule 1A:
(a)        its Underwriting and Sub Underwriting Risk Requirement; and
(b)       an underwriting risk amount for each Underwriting Commitment and Sub Underwriting Commitment.
(6) A Market Participant must calculate a Non-Standard Risk Requirement in accordance with Rule S1A.2.9.

S1A.2.3A Authorisation
(1) A Market Participant must be authorised by ASIC in writing for each of the risk calculation methods it uses for the purposes of Rule S1A.2.3.
(2) An authorisation given by ASIC under subrule (1)