Document ID: chunk:federal_register_of_legislation:F2018L00519:body:0:p2
Version: federal_register_of_legislation:F2018L00519
Segment Type: other
Provision Reference: 
Character Range: 2776–5623

being made by a Buyer or delivery in accordance with the Rules being effected by a Seller; and
              (b) if the liability of the Client is not extinguished, as set out in paragraph (a), then the Approved Collateral may be realised by the Trading Participant and the proceeds applied against that liability.
(4) It is a condition of the waiver in paragraph (1)(c) that the Trading Participant must ensure the liability of a Client for Initial Margin is Covered at all times.
           Note:  The conditions imposed on a waiver must be complied with in order for the waiver to be effective: subrule 1.2.1(2) of the Rules.

7 Time for payment of Margins
           Waiver
           (1) A Trading Participant of the ASX 24 Market which has agreed to accept Cover by way of Approved Collateral does not have to comply with Rule 7.2.6 of the Rules.
Conditions
           (2) It is a condition of the relief in subsection (1) that:
              (a)  where a Call is made for Initial or Variation Margin, the Trading Participant must stipulate the time for payment or lodgement of Approved Collateral, which must not be greater than:
(i) 24 hours if the Client's address is within Australia; or
(ii) 48 hours if the Client's address is outside Australia; and
              (b) the Trading Participant must not provide credit for a Client beyond the periods specified in subparagraphs (2)(a)(i) and (ii) unless:
                  (i) permitted by Rule 7.2.10 of the Rules; or
                  (ii) the Trading Participant exercises a reasonable discretion not to Close Out having regard to:
                     (A) the expertise and financial status of the Client; and
                     (B) any genuine attempts by the Client to meet the Call within the time prescribed; and
                     (C) whether relevant actions or omissions of third parties resulted in the Client failing to pay the Call; and
               (c) the Trading Participant's Client agreement must provide that time shall be of the essence in respect of payment or lodgement under Part 7.2 of the Rules.
           Note:  The conditions imposed on a waiver must be complied with in order for the waiver to be effective: subrule 1.2.1(2) of the Rules.

8 Obligation of Close Out
           Waiver
           (1) A Trading Participant of the ASX 24 Market which has agreed to accept Cover by way of Approved Collateral does not have to comply with Rule 7.2.8 of the Rules.
           Condition
           (2)  It is a condition of the waiver in subsection (1) that:
              (a)  where a Client is in default by failing to pay a Call (or lodge Approved Collateral) within the time stipulated by the Trading Participant, the Trading Participant must, immediately upon expiry of that time period, Close Out to the extent necessary to counter the Call, all or any