Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:1:p71
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 1 (pt 71/148)
Character Range: 509841–512581

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.
terminate, in relation to a derivative, includes the derivative being closed out.
underlying, in relation to a derivative, means any thing (of any nature whatsoever and whether or not deliverable) other than the derivative, including, for example, one or more of the following:
 (a) an asset;
 (b) a rate (including an interest rate or exchange rate);
 (c) an index;
 (d) a commodity.

7.1.22A  Retail clients and wholesale clients: value of foreign exchange contracts
 (1) This regulation makes arrangements about the value of a foreign exchange contract that is not a derivative.

Value
 (2) For paragraph 761G(7)(a) of the Act, the amount applicable to a foreign exchange contract is $500 000.

Working out value: general rule
 (3) For paragraph 761G(10)(a) of the Act, the value of a foreign exchange contract is the amount paid or payable under the foreign exchange contract.

7.1.23  Retail clients and wholesale clients: price of non‑cash payment financial products
 (1) This regulation makes arrangements about the price for the provision of a non‑cash payment financial product.
Note: Under paragraph 761G(7)(a) of the Act, if a financial product is not, or a financial service provided to a person does not relate to, a general insurance product, a superannuation product or an RSA, the financial product or financial service is provided to the person as a retail client unless the price for the provision of the financial product, or the value of the financial product to which the financial service relates, equals or exceeds the amount specified in regulations made for the purposes of that paragraph as being applicable in the circumstances.
 In general, the 'price' of a product will be