Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p109
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 109/148)
Character Range: 605326–608174

will be used in the operation of the clearing and settlement facility, including details of:
 (i) the purpose of the resources; and
 (ii) how the resources are to be supplied, managed, maintained and upgraded; and
 (iii) how the security of information technology systems is to be protected;
 (h) details of the arrangements for dealing with conflicts between the body corporate's commercial interests and its obligations to supervise and monitor the clearing and settlement facility;
 (i) details of the arrangements for the supervision of employees of the body corporate who have duties and responsibilities of a kind that supervision of the employees is necessary to protect the integrity of the operation of the clearing and settlement facility;
 (j) details of the arrangements for managing counterparty risk, including the risks arising from a counterparty being unable to meet its obligations arising out of clearing, settlement or clearing and settlement transactions using the facility;
 (k) if the ACCC has made a decision in relation to the clearing and settlement facility that the body corporate will operate—details of the decision.
Example of interests in a financial product: Legal title or an equitable interest.
Example of mechanisms to operate the clearing and settlement facility:
1 The way in which transfers are to be effected.
2 The way in which payment obligations are to be settled.

7.3.11  Documents
  For paragraph 824A(1)(b) of the Act, the following documents are required as part of an application by the body corporate for an Australian CS facility licence:
 (a) the body corporate's current or proposed operating rules and written procedures;
 (b) if applicable—the body corporate's constitution;
 (c) a copy of any agreement material to:
 (i) the way in which the clearing and settlement facility is to be operated; and
 (ii) the way in which the financing of the clearing and settlement facility, and the other resources used to operate it, will be organised; and
 (iii) the body corporate's constitution or governance; and
 (iv) the appointment or employment of directors, secretaries and executive officers of the body corporate;
 (d) a copy of any agreement, or proposed agreement, between the body corporate and a market licensee relating to services to be offered to the market licensee;
 (e) a copy of any agreement, or proposed agreement, relating to the outsourcing or delegation of a function, facility or service in relation to the facility by the body corporate to another person;
 (f) if the body corporate:
 (i) uses, or is likely to use, a counterparty; or
 (ii) will be operating as a central counterparty;
  an assessment by an independent auditor of the adequacy of the body corporate's arrangements for managing counterparty risk;
 (g) if the body corporate is a disclosing entity—a copy of each