Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p48
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
Provision Reference: 
Character Range: 127822–130676

or Options Market Transactions.

3.5.2 Segregated accounts or trust accounts—Futures Market Transactions

A Market Participant must establish either one or more clients' trust accounts or clients' segregated accounts for money received by the Market Participant in connection with dealings in:
 1.         Futures Market Transactions; and
 2.        Options Market Transactions over an Underlying Financial Product which is a Futures Market Contract.

3.5.3 Bank accounts to be with Australian ADI

All money received by a Market Participant which the Corporations Act requires the Market Participant to deposit in a clients' segregated account or in a clients' trust account must be deposited in an account with an Australian ADI in Australia (which has been rated by an Approved Ratings Agency as being at least short term investment grade) unless:
 1.         the money is received by the Market Participant in another country and the Market Participant deposits the money in a clients' segregated account or clients' trust account with a branch of an Australian ADI with such a rating in that country; or
(b)       Rule 3.5.4 applies.

3.5.4 Approved foreign banks
(1) ASIC may approve, in writing, a foreign bank at which a Market Participant may:
 1.         open clients' segregated accounts or clients' trust accounts for the handling of money received for a person in another country or for a person who is resident in another country; and
(b)       invest money held in clients' segregated accounts or clients' trust accounts in another country.
(2) ASIC may impose conditions on the use of a foreign bank approved under subrule (1) for clients' segregated accounts and clients' trust accounts.

3.5.5 Change of rating or approval of ADI

If a Market Participant has a clients' segregated account or a clients' trust account with an Australian ADI which ceases to have the rating referred to in Rule 3.5.3 or with a foreign bank which ceases to be a bank approved under Rule 3.5.4, the Market Participant must transfer the balance of the relevant account to an entity which meets the requirements of Rule 3.5.3 or Rule 3.5.4, as applicable.

3.5.6 Liquidity requirement—Clients' segregated accounts

If a Market Participant invests money from a clients' segregated account maintained under Rule 3.5.2 pursuant to paragraph 981C(a) of the Corporations Act, that investment must be readily realisable and at least 50% of money invested under that paragraph must be invested on 24 hour call terms.

3.5.7 Top up requirement—Clients' segregated accounts
(1) Subject to subrule (2), if a person (the Client) does not satisfy, either through payment or the provision of security, a request by the Market Participant to meet a call in relation to the close out, settlement or daily settlement of Open Contracts within 48 hours following the call for