Document ID: chunk:federal_register_of_legislation:F2024C01135:reg:6:p7
Version: federal_register_of_legislation:F2024C01135
Segment Type: reg
Provision Reference: reg 6 (pt 7/13)
Character Range: 30469–33307

acting on behalf of a person who is acting on behalf of that party; and
Note: A participant may be acting on behalf of a person even if it enters into a Central Clearing Transaction as principal.
(c)        following entry into the Central Clearing Transactions, each party to the Clearing Transaction has no, or substantially no, further rights against, or obligations to, the other party under the Clearing Derivative to which the Clearing Transaction relates.
(3) In this Rule, an operator of a Clearing Facility enters into a Central Clearing Transaction with:
(a)        a party to a Clearing Transaction who is a participant in the Clearing Facility if the operator is substituted, by novation, as the counterparty to the participant under the Clearing Derivative to which the Clearing Transaction relates; and
(b)       a participant who is acting on behalf of a party (first party) to a Clearing Transaction if:
(i)         the participant is substituted, by novation, as the first party under the Clearing Derivative to which the Clearing Transaction relates; and
(ii)       the operator is substituted, by novation, as the counterparty to the first party under the Clearing Derivative; and
(c)        a participant who is acting on behalf of a person who is acting on behalf of a party (first party) to a Clearing Transaction if:
(i)         the participant is substituted, by novation, as the first party under the Clearing Derivative to which the Clearing Transaction relates; and
(ii)       the operator is substituted, by novation, as the counterparty to the first party under the Clearing Derivative.
(4) In this Rule, an operator of a Clearing Facility also enters into a Central Clearing Transaction with a person in relation to a Clearing Transaction if the operator and the person enter into a transaction which has an equivalent, or a substantially equivalent, legal and economic effect as between the operator and the person as a novation referred to in paragraph (3)(a), (b) or (c).

2.1.2 Exception where Clearing Derivative terminated
A Clearing Entity is not required to comply with Rule 2.1.1 in relation to a Clearing Transaction if the Clearing Derivative to which the Clearing Transaction relates is terminated before the time by which the Clearing Transaction must be cleared in accordance with Rule 2.1.1.

2.1.3 Exception where no Licensed CS Facility or Prescribed CS Facility
A Clearing Entity is not required to comply with Rule 2.1.1 in relation to a Clearing Transaction if:
(a)        there is no Licensed CS Facility that:
(i)         is authorised to provide clearing services in respect of the class of Derivatives that includes the Clearing Derivative to which the Clearing Transaction relates; and
(ii)       provides clearing services in respect of the Clearing Derivative to which the Clearing