Document ID: chunk:federal_register_of_legislation:F2024C01135:reg:6:p2
Version: federal_register_of_legislation:F2024C01135
Segment Type: reg
Provision Reference: reg 6 (pt 2/13)
Character Range: 17499–20490

the scheme or trust to which the Representative Capacity relates is incorporated or formed in Australia; and
(b)       the entity is:
(i)         a Financial Entity that:
(A)       is incorporated or formed in Australia or is a foreign company; and
(B)       meets the Clearing Threshold in that Representative Capacity; or
(ii)       an Opt-In Australian Clearing Entity in that Representative Capacity.
(4) An entity is a Foreign Clearing Entity in relation to a Derivative Transaction to which it is party in its Personal Capacity if the entity is:
(a)        a Financial Entity that:
(i)         is a foreign company; and
(ii)       meets the Clearing Threshold in its Personal Capacity; or
(b)       an Opt-In Foreign Clearing Entity in its Personal Capacity.
(5) An entity is a Foreign Clearing Entity in relation to a Derivative Transaction to which it is a party in a Representative Capacity if:
(a)        the scheme or trust to which the Representative Capacity relates is incorporated or formed outside Australia; and
(b)       the entity is either:
(i)         a Financial Entity that:
(A)       is incorporated or formed in Australia or is a foreign company; and
(B)       meets the Clearing Threshold in that Representative Capacity; or
(ii)       an Opt-In Foreign Clearing Entity in that Representative Capacity.

Definitions of Australian clearing entity and foreign clearing entity in the Regulations
(6) For the purposes of subregulations 7.5A.61(2) and 7.5A.62(2) of the Regulations, an entity that is:
(a)        an Australian Clearing Entity in relation to a Derivative Transaction to which it is party in a Representative Capacity is an Australian clearing entity (as defined in subregulation 7.5A.61(2)) in relation to the Derivative Transaction; and
(b)       a Foreign Clearing Entity in relation to a Derivative Transaction to which it is party in a Representative Capacity is a foreign clearing entity (as defined in subregulation 7.5A.62(2)) in relation to the Derivative Transaction.

1.2.5 Meaning of Clearing Transaction
(1) This Rule defines when a Derivative Transaction is a Clearing Transaction for a Clearing Entity in relation to the Derivative Transaction.

Entry into a Clearing Derivative by an Australian Clearing Entity
(2) Entry into a Clearing Derivative by an Australian Clearing Entity is a Clearing Transaction for the Australian Clearing Entity if the other party to the Clearing Derivative is:
(a)        an Australian Clearing Entity; or
(b)       a Foreign Clearing Entity; or
(c)        a Foreign Internationally Active Dealer.

Entry into a Clearing Derivative by a Foreign Clearing Entity
(3) Entry into a Clearing Derivative by a Foreign Clearing Entity is a Clearing Transaction for the Foreign Clearing Entity if:
(a)        the other party to the Clearing Derivative is:
(i)         an Australian Clearing Entity; or
(ii)       a Foreign Clearing Entity; or
(iii)     a Foreign Internationally Active Dealer; and
(b)       where the