Document ID: chunk:federal_register_of_legislation:F2024C01137:front:0:p6
Version: federal_register_of_legislation:F2024C01137
Segment Type: other
Provision Reference: 
Character Range: 13970–16873

paragraph (2)(a) means the Derivative or class of Derivative (as applicable) is not an OTC Derivative if it is traded on an authorised financial market. A determination specifying a Derivative or class of Derivatives for the purposes of paragraph (2)(b) means that despite meeting the requirements of subparagraphs (2)(b)(i) – (iv), the specified Derivative or class of Derivatives is an OTC Derivative.
        (4) A determination by ASIC for the purposes of subrule (3):
         1.         will be registered under the Legislation Act 2003 as a legislative instrument;
         2.        will be published on ASIC's website; and
         3.         takes effect on the day specified in the determination.
(5) A determination by ASIC for the purposes of subrule (3):
         1.         may be withdrawn by ASIC, from a date specified in a notice of withdrawal that is not less than 1 calendar month after the date the notice of withdrawal is registered under the Legislation Act 2003; and
         2.        once withdrawn ceases to have effect.
Note 1: A Derivative is an OTC Derivative under this Rule regardless of whether it is cleared through a Licensed CS Facility.
Note 2: Legislative instruments made under this rule are available on the Federal Register of Legislation. The register may be accessed at www.legislation.gov.au.
(6) In these Rules a Derivative is not an OTC Derivative if:
         1.         it is a foreign exchange contract between counterparties that the Reporting Entity reasonably believes is solely to facilitate the settlement of a transaction between the counterparties, or by one of the counterparties, for the purchase and sale of a foreign currency denominated security, or a portfolio of foreign currency denominated securities; and
         2.        under which consideration is provided to settle the transaction not more than 7 Business Days after the day on which the transaction is entered into.
(7) In these Rules a Derivative is not an OTC Derivative if:
         1.         under an arrangement a party has an obligation to buy, and another party has an obligation to sell, intangible property at a price and within a period of no longer than the shortest period determined by the usual market practice for delivery of the property;
         2.        the arrangement does not permit the seller's obligations to be wholly settled by cash, or by set‑off between the counterparties, rather than by delivery of the property; and
         3.         it is not a foreign exchange contract or an option;
     but only to the extent that the arrangement deals with that purchase and sale.

1.2.5 Reporting Entities and Reportable Transactions
(1) Subject to subrules (2), (3) and (4) for the purposes of these Rules:
         1.         each entity referred to in column 2 of Table 1 is a Reporting Entity; and
         2.        each of the following Derivative