Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p25
Version: federal_register_of_legislation:F2024C01107
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Character Range: 66609–69433

than one Business Day after it becomes aware of any of the following matters:
 1.         that the Market Participant will cease to be, or has ceased to be:
(i)         only a Principal Trader;
(ii)       subject to the capital requirements of the Approved Clearing Facility; or
(iii)     an Authorised Deposit Taking Institution,
        as applicable;
(b)       in the case of a Market Participant that relies on an exception in subparagraph 8.2.1(2)(a)(ii) or (iii), that the Market Participant has materially breached, or is no longer about to comply with:
(i)         the capital requirements of the Approved Clearing Facility; or
(ii)       the capital requirements of APRA,
        as applicable.
(2) A written notice under paragraph (1)(b) must include details of the actions (if any) that the Market Participant has taken, or will take, to deal with the matter referred to in that paragraph.

Chapter 9: Accounts and audit

Part 9.1 Application of Rules

9.1.1 Principal Traders, Clearing Participants of Approved Clearing Facilities, and Authorised Deposit Taking Institutions

This Chapter does not apply to a Market Participant that is not required to comply with the Risk-Based Capital Requirements because of Rule 8.2.1.

Part 9.2 Risk-Based Capital Requirements—Reporting

9.2.1 Risk-Based Capital Requirements—Ad hoc or summary return on request by ASIC
A Market Participant must, if requested to do so by ASIC, provide ASIC with:
(a)        an Ad Hoc Risk-Based Return; or
(b)       a Summary Risk-Based Return and Risk-Based Return Declaration,
authorised by one director or partner of the Market Participant, within the time specified by ASIC in the request.

9.2.2 Core Capital, Liquid Capital or net assets below minimum
(1) A Market Participant must notify ASIC immediately if its:
(a)        Core Capital is at any time less than the minimum amount required by paragraph S1A.2.1(b); or
(b)       Liquid Capital divided by its Total Risk Requirement is equal to or falls below 1.2; or
(c)        net assets are at any time equal to or fall below zero.
(2) A Market Participant must provide ASIC with, at the option of ASIC, an Ad Hoc Risk-Based Return, or a Summary Risk-Based Return and Risk-Based Return Declaration, disclosing the amount of its Liquid Margin:
(a)        no later than one Business Day after notifying ASIC under subrule (1); and
(b)       from then on, either:
(i)         by 10 am on the first Business Day of each week, showing the financial position of the Market Participant on the last Business Day of the prior week, for so long as the amount referred to in paragraph (1)(b) is equal to or less than 1.2 but greater than 1.1; and
(ii)       by 10 am on each Business Day, showing the financial position of the Market Participant on the prior Business Day, for so long as the