Document ID: chunk:federal_register_of_legislation:F2023C00208:reg:17:p4
Version: federal_register_of_legislation:F2023C00208
Segment Type: reg
Provision Reference: reg 17 (pt 4/14)
Character Range: 9349–12162

in, or securities of, an exchange traded fund or a managed fund or class of exchange traded funds or managed funds.
                  reporting period means a 12-month period commencing on 1 April of any given year and ending on 31 March in the following year.
                  settlement failure limit, in relation to an ETF market maker, means 1% of the volume or value of the sales by the ETF market maker during a reporting period in reliance on subsection (4A) that have failed to settle within the time period required under the relevant operating rules of the relevant market.
                  settlement failure notice, in relation to an ETF market maker, means a notice setting out the volume and value of the sales by the ETF market maker during a reporting period in reliance on subsection (4A) that have failed to settle within the time period required under the relevant operating rules of the relevant market.
                  (b) for the avoidance of doubt, paragraph (4B)(d) applies to an ETF market maker in relation to a reporting period even if the ETF market maker stopped relying  on subsection (4A) during the reporting period because of a notice of cessation or a notice of exclusion.".

6 Market makers: Bona fide hedging
    Part 7.9 of the Act applies in relation to section 1020B products as if section 1020B of the Act were modified or varied by, after subsection (4), inserting the following subsections:
"Market makers: bona fide hedging
           (5A) Subsection (2) does not apply to a market maker in relation to a sale of a security (the shorted product) or managed investment product (the shorted product) by the market maker where all of the following apply:
                (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;
                (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);
                (c) at the time of the sale, the shorted product is:
                   (i) a constituent of the index known as the S&P/ASX 300; or
                   (ii) an interest in the SPDR S&P/ASX 200 Fund (STW); or
                   (iii) an interest in an approved ETF, where:
                       (A) the hedged product is an approved ETO in relation to that ETF; and
                       (B) the market maker has been appointed to make a market in the approved ETO by the operator of the market that the approved ETO is admitted to trading on;
                   Note: The S&P/ASX 300 index is compiled and calculated by Standard and Poor's, a