Document ID: chunk:federal_register_of_legislation:F2024C01109:front:0:p38
Version: federal_register_of_legislation:F2024C01109
Segment Type: other
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Character Range: 98882–101722

or offer entered by the other Market Participant.

3.3.2 Client authorisation
Before entering a pre-negotiated business Order on behalf of a Client under Rule 3.3.1, a Market Participant must be authorised in writing by the Client to do so either specifically or generally. The authorisation must state that the Client authorises Orders to be pre-negotiated on the Client's behalf.

3.3.3 Definition of Client
(1) For the purpose of this Part 3.3 in respect of any Market Participant that is a corporation, a Client includes a related body corporate or a division of the Market Participant which is separate from the Market Participant's futures division.
(2) For the purposes of trading out of a trade allocated to a Market Participant that is an Error Trade, the Market Participant's futures division is classified as a Client.

Part 3.4 Trading principles for Block Trades

3.4.1 Participant entitlements
Where a Market Participant receives a Block Trade Order from a Client, the Market Participant may:
 1.         solicit counterparties to the Block Trade Order amongst other Participants of the same Market;
 2.        withhold transmission of the Block Trade Order in order to solicit those counterparties;
 3.         disclose those details of the Block Trade Order as authorised by the Clients; and
 4.        aggregate Orders where each Order is greater than or equal to the Minimum Volume Threshold for that Contract.

3.4.2 Prohibitions
(1) Market Participants must not aggregate separate Orders in order to meet Minimum Volume Thresholds.
(2) Market Participants must not use the Block Trade Facility to execute Roll Business.

3.4.3 Unfilled Block Trade Orders
(1) Subject to subrule (2), where counterparties have been solicited under paragraph 3.4.1(a) amongst other Market Participants of the relevant Market and the Block Trade Order remains unfilled, then the Block Trade Order may revert to an Order.
(2) The Orders solicited from counterparties referred to in subrule (1) must not be entered into a Trading Platform unless a period of 60 seconds has elapsed from the entry of the originating Block Trade Order.

3.4.4 Client authorisation

     (1) Before executing a Block Trade Order on behalf of a Client on a Market, a Participant of that Market must be authorised by the Client to do so either specifically or generally.

     (2) The Market Participant must keep a record of the identity of the authoriser, and the date and time of the authorisation.

Part 3.5 Trading principles for Exchange For Physical transactions

3.5.1 Prohibitions
No Exchange For Physical transaction may be effected:
(a)        where the parties to each side of the physical transaction are the same or are acting on behalf of the same person; or
(b)       where both sides of the Futures Market Contract are taken out by the same Market