Document ID: chunk:federal_register_of_legislation:F2024C01108:front:0:p43
Version: federal_register_of_legislation:F2024C01108
Segment Type: other
Provision Reference: 
Character Range: 114488–117421

who is permitted under the Clearing Rules to clear that Options Market Transaction; or
(b)       is a Clearing Participant, who is permitted under the Clearing Rules to clear that Market transaction, but has an arrangement with another Clearing Participant to clear that Options Market Transaction, and such transaction is cleared under the arrangement,

the Market Participant must:

 1.         have previously confirmed with the Clearing Participant that the Client has entered into an agreement with the Clearing Participant as required under the Clearing Rules; or

(d)       where the Client is a wholesale client, have satisfied itself that the Client has executed and lodged with the Clearing Facility a Wholesale Client Agreement as required under the operating rules of the relevant Market.

3.1.13 Client agreement where Market Participant is the Clearing Participant (Options Market Transactions only)

Before entering into an Options Market Transaction for a person (the Client) on a Market, where a Market Participant is the Clearing Participant in relation to the Options Market Transaction, the Market Participant must:

 1.         have entered into an agreement with the Client as required under the Clearing Rules; or

(b)       where the client is a wholesale client, have satisfied itself that the Client has executed and lodged with the Clearing Facility a Wholesale Client Agreement as required under the operating rules of the relevant Market.

Part 3.2 Trading as Principal

3.2.1 Application

This Part 3.2 applies where a Market Participant enters into a Market transaction with a Client as Principal, except where the Client is a Market Participant of that Market or a participant or member of a stock exchange that:

 1.         is a Recognised Stock Exchange within the meaning of the operating rules of that Market;

 2.        is a Recognised Overseas Exchange within the meaning of the operating rules of that Market; or

(c)        is a Recognised Stock Exchange within the meaning of the operating rules of another Market.

3.2.2 Disclosure and consent
Before entering into a Market transaction as Principal with a person (the Client), a Market Participant must disclose, or have previously disclosed, in accordance with paragraph 991E(1)(c) of the Corporations Act, that it is acting, or may act, as Principal and have obtained the consent of the Client, in accordance with paragraph 991E(1)(d) of the Corporations Act.

3.2.3 Confirmation must include disclosure
When a Market Participant enters into a Market transaction with a person (the Client) as Principal, the confirmation issued by the Market Participant to the Client under Rule 3.4.1 in respect of that Market transaction must state that the Market Participant entered into the transaction as Principal and not as agent.

3.2.4 Brokerage and commission

(1) When a Market Participant enters into a Market transaction as Principal with a