Document ID: chunk:federal_register_of_legislation:F2024C01109:front:0:p39
Version: federal_register_of_legislation:F2024C01109
Segment Type: other
Provision Reference: 
Character Range: 101502–104332

(a)        where the parties to each side of the physical transaction are the same or are acting on behalf of the same person; or
(b)       where both sides of the Futures Market Contract are taken out by the same Market Participant on its own account or are taken out on behalf of the same Client.

3.5.2 Evidence of physical transaction
(1) Subject to subrule (2) where either a Participant of a Market or its Client is a party to an Exchange For Physical transaction, the Participant must ensure that evidence of the physical transaction, as set out in the operating rules for the relevant Market, is obtained by the Participant.
(2) The requirements under subrule (1) can alternatively be met by undertaking the following procedures:
(a)        retaining and maintaining an updated list of Representatives authorised to register Exchange For Physical transactions on behalf of the Participant;
(b)       obtaining and retaining executed copies of a Client undertaking which contains undertakings from the Client including that the Client will provide to the Participant full details of the physical transaction (including documentary evidence) which attach to Exchange For Physical transactions effected by the Participant on behalf of the Client; and
(c)        requesting appropriate physical evidence on an "as needs basis" from the Client if the Participant is required to demonstrate compliance with this Rule.

3.5.3 Client authorisation
(1) Before executing an Exchange For Physical Order on behalf of a Client, a Market Participant must be authorised by the Client to do so either specifically or generally.
(2) The Market Participant must keep a record of the identity of the authoriser, and the date and time of the authorisation.

Part 3.6 Suspicious activity reporting

3.6.1 Notification requirement
(1) Subject to subrule (2), if a Market Participant has reasonable grounds to suspect that:
(a)        a person (the Insider) has placed an Order into or entered into a transaction on a Market in relation to a financial product while in possession of inside information (within the meaning of section 1042A of the Corporations Act), whether or not the Market Participant is aware of:
 1.          the identity of the Insider; or
(ii)       all of the details of the order or transaction; or
(c)        a transaction or an order transmitted to a Trading Platform of a Market has or is likely to have the effect of:
 1.          creating an artificial price for trading in financial products on a Market;
(ii)       maintaining at a level that is artificial (whether or not it was previously artificial) a price for trading in financial products on a Market;
(iii)     creating, or causing the creation of, a false or misleading appearance of active trading in financial products on a Market; or
(iv)      creating,