Document ID: chunk:federal_register_of_legislation:F2020L01338:body:0:p2
Version: federal_register_of_legislation:F2020L01338
Segment Type: other
Provision Reference: 
Character Range: 2713–5735

stock market index over the term of the derivative.
              Note 2: There may be other factors that affect the value of the derivative. For example, fees and costs.
           (b)   the derivative is not able to be traded on a licensed market;
           (c)   the derivative:
              (i)   does not terminate on a fixed date; or
              (ii)   if the derivative terminates on a fixed date—it is a derivative of a kind that are typically terminated before the fixed date;
              Note 1: For example, the derivative may have a fixed termination date if the underlying has a fixed termination date.
              Note 2: This means that options, futures, swaps and forward rate agreements will generally not be contracts for difference.
           (d)   the holder has the right to terminate the derivative;
              Note:   The terms of the derivative may provide for its termination in other circumstances. For example, on the occurrence of an event of default or on the issuer (other than the holder) exercising a right to terminate the derivative.
           (e)   on termination, the obligations of the parties are settled in cash or by set‑off between the parties.
              Note:   derivative is defined in section 761D of the Act.
cryptoasset includes cryptocurrency.
exchange rate for a major currency pair means an exchange rate for a pair of currencies that consists of any two of the following:
           (a) Australian dollar;
           (b) British pound;
           (c) Canadian dollar;
           (d) euro;
           (e) Japanese yen;
           (f) Swiss franc;
           (g) US dollar.
exchange rate for a minor currency pair means an exchange rate for a pair of currencies that is not an exchange rate for a major currency pair.
holder: see the definition of CFD.
initial margin means the margin which a CFD issuer requires to be provided by a holder in relation to the issue, or proposed issue, of a CFD to the holder.
major stock market index means any of the following stock market indices:
           (a)  CAC 40;
           (b)  DAX;
           (c)  Dow Jones Industrial Average;
           (d)  EURO STOXX 50 Index;
           (e)  FTSE 100;
           (f)  NASDAQ-100 Index;
           (g)  NASDAQ Composite Index;
           (h)  Nikkei Stock Average;
           (i)  S&P 500;
           (j)  S&P/ASX 200.
minor stock market index means a stock market index that is not a major stock market index.
net equity, in relation to a CFD trading account of a retail client, means the sum of:
           (a)  derivative retail client money held both:
              (i) in a client money account for the benefit of the retail client; and
              (ii) in relation to the CFD trading account; and
           (b) any other money:
              (i) held both:
                  (A) in the client money account for the benefit of the retail client; and
                  (B) in relation to the CFD trading account; and
              (ii)  that was paid into the client