Sydney Futures Exchange Ltd v. Australian Stock Exchnage Ltd [1994] FCA 798

JUDGMENT No. eum t Sal cal Fon

CATCHWORDS

CORPORATIONS LAW- "futures contract" - whether a Low Exercise Price Option (LEPO) is a futures contract within s.72(1)

Corporations Law - "commodity" - "commodity agreement" - "Chapter 8 obligation" - whether securities underlying LEPO can constitute a "commodity" - whether underlying securities are capable of delivery in relevant sense - whether security transfer form is an instrument creating or evidencing a thing in action - whether economic imperative arising out of #EPO constitutes a Chapter 8 obligation.

CORPORATIONS LAW - securities - "option contracts" - whether securities options are securities for the purposes of s.92(1)

Corporations Law.

Corporations Law, 5.9, §.72(1), 8.92(1)

Shoreline Currencies (Aust) Pty Ltd v Corporate Affairs Commission (1986) 11 NSWLR 22.

Carragreen Currencies Corporation Pty Ltd v Corporate Affairs Commission of New South Wales (1986) 7 NSWLR 705.

Laybutt_v Amoco Australia Pty Ltd (1974) 132 CLR 57.

YDNEY_F' RES EXCHANGE LIMITED v_ AUSTRALIAN EXCHAN LIMITED

No. NG 3432 of 1994

RECEIVED

Sackville J. "2 NOV 1994 2 November 1994

COURT OF Sydney. FEE USTRALIA

PRINCIPAL REGISTAY

FEDERAL COURT OF AUSTRALIA ) NEW SOUTH WALES DISTRICT REGISTRY ) No. NG 3432 of 1994

GENERAL DIVISION )

BETWEEN:

SYDNEY FUTURES EXCHANGE LIMITED

Applicant AND:

AUSTRALIAN STOCK EXCHANGE LIMITED

Respondent

CORAM: SACKVILLE J. PLACE: SYDNEY DATE: 2 NOVEMBER 1994

MI E F_QRDER

THE COURT:

1. ORDERS THAT the application be dismissed.

2. DECLARES that a financial instrument to be known as and designated by the Respondent as a Low Exercise Price Option, being an instrument to be regulated in accordance with the Business Rules of the Respondent, in the form of the document referred to as DJW5 in the affidavit of David John White sworn 10 October 1994, is a security within the meaning of section 92(1) of the Corporations Law.