Document ID: chunk:federal_register_of_legislation:F2023C00208:reg:12:p2
Version: federal_register_of_legislation:F2023C00208
Segment Type: reg
Provision Reference: reg 12 (pt 2/2)
Character Range: 37915–40416

financial market operated by ASX Limited or Cboe Australia Pty Ltd.
(3) In subsections (1) and (2):
exchange traded fund (or ETF) has the meaning given by subsection 1020B(4D) of the Act.
ETF market maker has the meaning given by subsection 1020B(4D) of the Act.
managed fund has the meaning given by subsection 1020B(4D) of the Act.
Note: Section 5 of this instrument notionally inserts subsection 1020B(4D) of the Act.

14 Market makers: bona fide hedging
(1) A market maker does not have to comply with subsection 1020AB(3) of the Act to the extent it requires the market maker to give the particulars specified in paragraphs 7.9.100(1)(a) to (c) of the Regulations.
(2) Subsection (1) applies in relation to a sale of a security (the shorted product) or a managed investment product (the shorted product) by the market maker where both of the following are satisfied:
            (a) the market maker has issued, acquired or disposed of a financial product (the hedged product), or has agreed to issue, acquire or dispose of a financial product (the hedged product), in the course of making a market for the hedged product; and
            (b) the sale of the shorted product is a bona fide transaction to manage, avoid or limit the financial consequences of the dealing or proposed dealing mentioned in paragraph (a).
       (3) In this section:
       market maker has the meaning given by subsection 1020B(5J).
Note: Section 6 of this instrument notionally inserts subsection 1020B(5J) of the Act.

15 Low volume and low value short positions
(1) A seller with a short position in relation to a security or managed investment product that does not exceed the value limit and the volume limit on a day does not have to comply with the following provisions in relation to the short position:
            (a) section 1020AB of the Act to the extent that it requires the seller to give the particulars specified in paragraph 7.9.100(1)(d) of the Regulations; or
            (b) regulation 7.9.100A of the Regulations.
       Note: But for this section, particulars of a short position to which these regulations apply would need to be given to ASIC.
       (2) In this section:
       value limit has the meaning given by subsection 1020B(1) of the Act.
volume limit has the meaning given by subsection 1020B(1) of the Act.
Note: Section 16 of this instrument notionally inserts definitions of value limit and volume limit into subsection 1020B(1) of the Act.

Part 5—Definitional and other changes