Document ID: chunk:federal_register_of_legislation:F2024C01109:front:0:p36
Version: federal_register_of_legislation:F2024C01109
Segment Type: other
Provision Reference: 
Character Range: 93612–96519

by a Market Participant for principal dealing only. It excludes dealings by the Market Participant on behalf of a corporation related to the Market Participant or another division within that Market Participant's corporation which is separate from its futures division.
 3.         initiate means that the Employee originates an Order to trade in a Futures Market Contract or Option Contract.
 4.        similar commodity includes, without limitation:
        1.          in the case of an interest rates based Contract, all other interest rate based Contracts and,
        2.        in the case of an SPI contract, individual share futures Contracts.

3.1.16 Trades to be allocated in sequence of Order receipt

(1) Subject to subrule (3) a Market Participant and its Representative must allocate trades to Clients in the sequence in which the Orders are received.

(2) For the purposes of this Rule a Client of a Market Participant which is a corporation includes a related body corporate or a division of the Market Participant which is separate from that Market Participant's futures division.

(3) A Market Participant may allocate out of sequence where:
(a)        Orders are aggregated under Rule 3.1.6;
(b)       the Market Participant uses either of the following pro-rata methods:
 1.          volume weighted average method; or
 2.        percentage basis;
(c)        the Market Participant has advised, in writing, each Client whose Orders may be allocated out of sequence under this Rule, nominating the pro-rata method selected under paragraph (b); and
(d)       the Market Participant has retained a record of the advice sent to the Client under paragraph (c) while the Client remains a Client of the Market Participant and for a period of five years after that Client ceases to be a Client of the Market Participant.

(4) A Market Participant must notify ASIC in writing prior to adopting or changing its policy of allocating Orders on one of the pro-rata methods set out in paragraph (3)(b).

3.1.17 Post-allocation prohibition

(1) A Market Participant must not offer and/or allocate trades to a Client unless those trades have been obtained under instructions previously obtained from that Client.

(2) For the purposes of this Rule a Client of a Market Participant which is a corporation includes a related body corporate or a division of the Market Participant which is separate from that Market Participant's futures division.

Part 3.2 Strategy Trading

3.2.1 Strategy Trade records
(1) A Market Participant must maintain a record of all Strategy Trades, for a period of five years.
(2) Market Participants must allocate each leg of a Strategy Trade to the same account.

Part 3.3 Pre-negotiated business orders

3.3.1 Pre-negotiated business
(1) Where a Market Participant receives an instruction from a Client which can be executed as pre-negotiated business on a Market, the Market