Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p32
Version: federal_register_of_legislation:F2024C01107
Segment Type: other
Provision Reference: 
Character Range: 85190–88071

than 1.2 on redemption.
(3) In forming an opinion as to whether a Market Participant is capable of continuing to meet the requirement in subrule (2), 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.2.6 Guarantees and indemnities
(1) A Market Participant may only give a guarantee or indemnity:
(a)        for the purposes of these Rules, the ASIC Market Integrity Rules (Securities Markets) 2017, the ASIC Market Integrity Rules (Futures Markets) 2017, the operating rules of a Market, the ASX Clear Operating Rules or the ASX Settlement Operating Rules;
(b)       in the ordinary course of the conduct of its securities or derivatives business;
(c)        outside the ordinary course of its securities or derivatives business if a maximum liability is specified in the guarantee or indemnity at the time it is entered into; or
(d)       to settle legal proceedings that have been threatened or issued against it,
and must not give a cross-guarantee.
(2) For the purposes of paragraphs (1)(b) and (c), the expression "ordinary course of the conduct of its securities or derivatives business" includes, but is not limited to, a guarantee or indemnity given by a Market Participant to:
(a)        a lessor for lease rental commitments on premises, computer equipment and other property, plant and equipment by the service company of the Market Participant where those premises and equipment are for use exclusively or predominantly by the Market Participant;
(b)       financial institutions for withdrawal of funds by the Market Participant against uncleared cheques;
(c)        ASIC to support the issuance of an Australian financial services licence to the Market Participant; and
(d)       a lessor for lease rental payments on a residence for a member of staff, normally based overseas, who is temporarily located in Australia to perform their duties,
but would not normally include:
 1.         charges, guarantees or indemnities given over the financial performance of a subsidiary or Related/Associated Person of the Market Participant; and
 1.         charges, guarantees or indemnities given to support underwriting activities that are not booked in the Market Participant.
(3) A Market Participant that is a member of a consolidated group within the meaning of section 703-5 of the Income Tax Assessment Act 1997 (Cth) must, when it first becomes a member of that group, report in the "Additional Comments" section of the next Monthly Risk-Based Return required by Rule 9.2.3:
(a)        the date its group elected to become