Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p59
Version: federal_register_of_legislation:F2024C01107
Segment Type: other
Provision Reference: 
Character Range: 160195–162931

risk amount from the time that the deadline for the placement is reached, for any shares that have not been sold to buying clients by that time, where the position risk amount is based on the "final" price for the placement; and
(e)        where the Market Participant has applied for stock, allocation interest units or instalment receipts on behalf of clients and the Market Participant has been given a Firm Allocation and there is a shortfall once the public offer closes, the Market Participant will be required to calculate an equity position risk amount on the shortfall from the date that the Market Participant has outlaid the funds or the date that the public offer closes, whichever is later.
Note: Under Rule A4.1.4, a Market Participant that acts as underwriter of an initial public offering or placement of new shares will also be required to calculate a position risk amount in respect of that activity in accordance with this Annexure 3.

A3.1.2B Treatment—Securities subject to a trading halt or suspension
Where a Market Participant holds a principal position in a security that is subject to:
(a)        a trading halt, the position does not have to be treated as an Excluded Asset (where the position otherwise meets the definition of Liquid) and a position risk amount must be calculated; and
(b)       suspension, the position must be treated as an Excluded Asset on the basis that the security is not Liquid.

A3.1.2C Treatment—Classical ETFs
A Market Participant must take the following into account when calculating a position risk amount for a principal position in Classical ETF units:
(a)        there is no difference between the primary market and secondary market for the purposes of calculating position risk amounts;
(b)       principal positions in Classical ETFs commence at T0 and the underlying risk variable is the market price of the Classical ETF unit;
(c)        the Equity Equivalent of the Classical ETF is set out in Rule A3.8.5;
(d)       the Position Risk Factors to be applied are set out in Table A5.1.1 in Annexure 5 to Schedule 1A; and
(e)        if the Market Participant is unlikely to be able to liquidate its position in a Classical ETF within 31 days, taking into account factors including the size of its position and the volume of that Classical ETF traded in the market, it must treat the position as an Excluded Asset and exclude the market value of that position from Liquid Capital.

A3.1.2D Treatment—Hybrid ETFs
A Market Participant must take the following into account when calculating a position risk amount for a principal position in units in a Hybrid ETF classified as Equities:
(a)        there is no difference between the primary market and secondary market for the