Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p38
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
Provision Reference: 
Character Range: 101410–104387

Market transaction for an Equity Security, Loan Security or Warrant, if a Market Participant:
 1.         is not a Clearing Participant, who is permitted under the Clearing Rules to clear the Cash Market Transaction; or
(b)       is a Clearing Participant who is permitted under the Clearing Rules to clear that Cash Market Transaction, but has an arrangement with another Clearing Participant to clear that Cash Market Transaction, and such transaction is cleared under the arrangement,
the Market Participant must give the Client a document which clearly discloses the clearing arrangements in place for that transaction, including, without limitation, any information required by subrule (2).
(2) The written disclosure document referred to in subrule (1) must include:
 1.         the name, principal telephone number and principal business address of the Clearing Participant which clears the Market transactions of the Market Participant;
(b)       if, under the clearing arrangements each or any of the following apply:
 1.          notwithstanding that the Market transaction may have been entered into on the Client's behalf, the Clearing Participant carries the Clearing Obligations and any settlement obligations for all Market transactions of the Trading Participant, including those of the Client, and must settle as principal with the Clearing Facility or the relevant counter-party;
(ii)       the Client owes obligations to the Clearing Participant in relation to the clearing and settlement of Cash Market Transactions;
(iii)     the Clearing Participant has rights against the Client in the event that:
 1.        the Client fails to pay the amounts due in respect of Cash Market Transactions;
(B)       the Client fails to fulfil its settlement obligations in respect of Cash Market Transactions,
        statements to that effect.
(3) A Market Participant is not required to comply with subrule (1) in relation to a Client where, at the time the obligation to comply with subrule (1) would arise, all of the following are satisfied:
 1.         the Market Participant has already given the Client a document that complies with subrules (1) and (2) with respect to the clearing arrangements in place for the Client's transactions on a Market;
(b)       the Market Participant proposes to rely on the clearing arrangements disclosed in the document referred to in paragraph (a) for the purposes of clearing the Client's transactions on the Market referred to in subrule (1); and
(c)        the Market Participant notifies the Client in writing of any material change to the clearing arrangements referred to in paragraph (a), including, without limitation, any changes to the matters referred to in paragraphs (2)(a) and (b).

3.1.4A Information to be given to a client: Settlement arrangements
(1) Before accepting an order from a person (the Client) to enter into a Market transaction, if a Market Participant:
(a)        is not a Settlement Participant who