Document ID: chunk:federal_register_of_legislation:F2021L00421:body:0:p2
Version: federal_register_of_legislation:F2021L00421
Segment Type: other
Provision Reference: 
Character Range: 2833–5609

terminated earlier, a predetermined fixed amount, or no amount, is payable by the binary option provider to the holder; and
           (b) without limiting the scope of paragraph (a), includes such an arrangement where:
              (i) the holder has, or may have, a right to terminate the arrangement before the expiry time; and
              (ii) if the arrangement is so terminated, the binary option provider must or may pay an amount to the holder (whether or not the amount is a predetermined fixed amount and whether or not the holder has a legally enforceable right to such a payment).
binary option provider: see the definition of binary option.
cryptoasset includes cryptocurrency.
financial product means either of the following:
           (a) a financial product (within the meaning of section 761A of the Act);
           (b) an ASIC Act financial product (within the meaning of section 1023B of the Act).
over-the-counter in relation to a derivative, means a derivative that is not able to be traded on a licensed market.
terminated in relation to a derivative includes the derivative being closed out.
           Note:  Unless a contrary intention appears, a term that is defined in section 761A of the Act has the same meaning in this instrument: see sections 761A and 761H of the Act.
(2) For the purposes of this instrument, a reference to offering to issue a derivative includes a reference to inviting an application for the issue of the derivative.

       Part 2—Order

5 Prohibitions on dealing in binary options in relation to retail clients

       Prohibitions

       (1) A binary option provider must not issue a binary option to a retail client.
(2) A person who carries on a business of arranging for the issue of binary options must not arrange for the issue of a binary option by a binary option provider to a retail client.
(3) A person who carries on a business of applying for, or acquiring, binary options as an agent must not apply for, or acquire, a binary option from a binary option provider on behalf of a retail client.
(4) A person who carries on a business of arranging for persons to apply for, or acquire, binary options must not arrange for a retail client to apply for, or acquire, a binary option from a binary option provider.
Application of prohibitions
(5) Subsections (1) to (4) apply on and from 3 May 2021.
(6)  Subsection (1) applies only if one or both of the following apply:
           (a)  the binary option provider is:
              (i)  a body corporate incorporated or carrying on business in Australia; or
              (ii)  an Australian citizen; or
              (iii)  ordinarily resident in Australia;
           (b)  the issue of the binary option occurs in this jurisdiction, or an offer to issue the