Document ID: chunk:federal_register_of_legislation:F2024C01137:front:0:p5
Version: federal_register_of_legislation:F2024C01137
Segment Type: other
Provision Reference: 
Character Range: 11355–14223

Rules.

1.2.4 OTC Derivatives
(1) Subject to subrules (2), (6) and (7), in these Rules a Derivative is an OTC Derivative if the Derivative is in a Prescribed Class.
(2) In these Rules a Derivative is not an OTC Derivative if:
        (a)        the Derivative is able to be traded (within the meaning of section 9 of the Act) on an authorised financial market and the entry into of the arrangement that is the Derivative:
           (i)         takes place on an authorised financial market, or is reported to the operator of an authorised financial market in its capacity as operator of the authorised financial market, in accordance with the Operating Rules of the authorised financial market; and
           (ii)       ASIC has made a determination under subrule (3) that specifies the Derivative for the purposes of this paragraph; or
        (b)       the Derivative is able to be traded (within the meaning of section 9 of the Act) on an authorised financial market and the entry into of the arrangement that is the Derivative:
           (i)         takes place on an authorised financial market, or is reported to the operator of an authorised financial market in its capacity as operator of the authorised financial market, in accordance with the Operating Rules of the authorised financial market; and
           (ii)       is in accordance with the Operating Rules of the authorised financial market; and
           (iii)     the terms of the Derivative are documented under or prescribed by the Operating Rules of the authorised financial market; and
           (iv)      the Derivative is made available in one or more series in accordance with the Operating Rules of the authorised financial market and the terms of the arrangement constituting the Derivative, including the amount or size of the Derivative specified by the operator of the authorised financial market, are the same as for every other Derivative in the same series, with the exception of the price; and
           (v)       is not specified in a determination made by ASIC under subrule (3) for the purposes of this paragraph.
     (3) ASIC may determine from time to time, to specify, for the purposes of paragraph (2)(a) or (b):
         1.         a Derivative or a class of Derivatives able to be traded on any authorised financial market; or
         2.        a Derivative or a class of Derivatives able to be traded on a particular authorised financial market or an authorised financial market in a class of authorised financial market.
Note: A determination specifying a Derivative or class of Derivatives for the purposes of 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)