ASIC Market Integrity Rules (Futures Markets) Class Waiver 2018/265 (Cth)

ASIC Market Integrity Rules (Futures Markets) Class Waiver 2018/265 I, Anthony Graham, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.

Date 23 April 2018

Anthony Graham

Contents

Part 1—Preliminary 1 Name of legislative instrument 2 Commencement 3 Authority 4 Definitions Part 2—Waiver 5 Calling Initial Margin 6 Satisfaction of Calls for Margin 7 Time for payment of Margins 8 Obligation of Close Out

Part 1—Preliminary

1 Name of legislative instrument This is the ASIC Market Integrity Rules (Futures Markets) Class Waiver 2018/265.

2 Commencement This instrument commences on the later of: (a) 7 May 2018; (b) the day after this instrument is registered on the Federal Register of Legislation. Note: The register may be accessed at www.legislation.gov.au.

3 Authority This instrument is made under subrule 1.2.1(1) of the ASIC Market Integrity Rules (Futures Markets) 2017 (Rules).

4 Definitions (1) In this instrument: Approved Collateral means securities or other collateral or property accepted by ASX Clear (Futures) under the Clearing Rules. Cover means cash and/or Approved Collateral held by a Market Participant against a Client's liability from time to time. (2) In this instrument, unless the contrary intention appears, capitalised terms have the same meaning as in the Rules.

Part 2—Waiver

5 Calling Initial Margin A Trading Participant of the ASX 24 Market which has agreed to accept and has received Cover by way of Approved Collateral does not have to comply with subrule 7.2.2(4) of the Rules. Note: This waiver does not affect a Trading Participant's obligations under subrules 7.2.2(1) to (3) of the Rules.

6 Satisfaction of Calls for Margin Waiver (1) A Trading Participant of the ASX 24 Market which has agreed to accept Cover by way of Approved Collateral does not have to comply with any of the following provisions of the Rules: (a) subrule 7.2.5(1); (b) subrule 7.2.5(2); (c) subrule 7.2.5(3). Conditions (2) It is a condition of the relief in paragraph (1)(a) that the Trading Participant's Client agreement must provide that Calls for Initial Margin and Variation Margin must be satisfied by payment unless the Trading Participant agrees to accept, in lieu of payment, Approved Collateral. (3) It is a condition of the relief in paragraph (1)(b) that the Trading Participant's Client agreement must provide that: (a) Approved Collateral received as Cover shall be retained by the Trading Participant until such time as the liability of the Client is extinguished either by the relevant contracts being Closed Out or payment being made by a Buyer or delivery in accordance with the Rules being effected by a Seller; and (b) if the liability of the Client is not extinguished, as set out in paragraph (a), then the Approved Collateral may be realised by the Trading Participant and the proceeds applied against that liability. (4) It is a condition of the waiver in paragraph (1)(c) that the Trading Participant must ensure the liability of a Client for Initial Margin is Covered at all times. Note: The conditions imposed on a waiver must be complied with in order for the waiver to be effective: subrule 1.2.1(2) of the Rules.