Corporations Amendment Regulations 2002 (No. 9)1

Statutory Rules 2002 No. 2822

I, PETER JOHN HOLLINGWORTH, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Corporations Act 2001.

Dated 27 November 2002

PETER HOLLINGWORTH

Governor-General

By His Excellency’s Command

IAN CAMPBELL

Parliamentary Secretary to the Treasurer

1 Name of Regulations

  These Regulations are the Corporations Amendment Regulations 2002 (No. 9).

2 Commencement

  These Regulations commence on 1 December 2002.

3 Amendment of Corporations Regulations 2001

  Schedule 1 amends the Corporations Regulations 2001.

Schedule 1 Amendments

(regulation 3)

[1] Subregulation 1.0.02 (1), definition of settlement authority

substitute

settlement authority means any of the following:

 (a) a participating market licensee;

 (b) a prescribed CS facility;

 (c) the licensed CS facility operated by Options Clearing House Pty Limited.

[2] Subregulation 1.0.02 (1), definitions of TDS nominee and transfer delivery service provisions

omit

[3] Regulation 7.5.01, definition of clearing nominee

omit

[4] Regulation 7.5.01, definition of obligations

substitute

obligations:

 (a) in relation to a participant of a participating market licensee, in relation to a person, includes obligations arising under:

 (i) a law; or

 (ii) the participating market licensee’s operating rules; or

 (iii) the ASTC operating rules; or

 (iv) an agreement between;

 (A) in any case — the participant and the person; or

 (B) if the participant is a partner in a participant of the participating market licensee — the last-mentioned participant and the person; and

 (b) in relation to a participant of the licensed CS facility operated by Options Clearing House Pty Limited, in relation to a person, includes obligations arising under:

 (i) a law; or

 (ii) the operating rules of Options Clearing House Pty Limited; or

 (iii) the ASTC operating rules; or

 (iv) an agreement between;

 (A) in any case — the participant and the person; or

 (B) if the participant is a partner in a participant of the licensed CS facility operated by Options Clearing House Pty Limited — the last-mentioned participant and the person.

[5] Regulation 7.5.01, definition of reportable transaction

substitute

reportable transaction means a transaction that is entered into before or after the commencement of this Part in relation to securities, and:

 (a) is or has at any time been a sale or purchase, by a participant (the first dealer) of a participating market licensee, of securities, if the securities are quoted on a financial market of a participating market licensee when the agreement for the sale or purchase is made, and:

 (i)  in any case — the participating market licensee’s operating rules, as in force when the agreement for the sale or purchase is made, require the first dealer to report the sale or purchase to the participating market licensee; or

 (ii) if the sale or purchase is to or from, as the case may be, a participant (the second dealer) of a participating market licensee — the last-mentioned participating market licensee’s operating rules, as in force when the agreement for the sale or purchase is made, require the second dealer to report to the last‑mentioned participating market licensee the purchase or sale of the securities by the second dealer from or to, as the case may be, the first dealer; or

 (b) is the exercise of an option contract over securities, being an option contract that:

 (i) was entered into on the financial market of a participating market licensee; and

 (ii) is required, by the operating rules of Options Clearing House Pty Limited, to be reported to the participating market licensee.

[6] Subregulation 7.5.03 (1)

omit

Subdivision 4.5),

insert

Subdivisions 4.5 and 4.9),

[7] Paragraph 7.5.03 (2) (b)

omit

licensee.

insert

licensee; or

[8] After paragraph 7.5.03 (2) (b)

insert

 (c) a participant of the licensed CS facility operated by Options Clearing House Pty Limited.

[9] After subregulation 7.5.03 (2)

insert

 (3) For Subdivision 4.9, a person is a dealer if the person is:

 (a) a participant of a participating market licensee; or

 (b) a participant of the licensed CS facility operated by Options Clearing House Pty Limited.

[10] Subregulation 7.5.04 (1)

omit

An, excluded person,

insert

For this Part (other than Subdivision 4.9), an excluded person,

[11] After subregulation 7.5.04 (1)

insert

 (1A) For Subdivision 4.9, an excluded person, in relation to a participant of a participating market licensee, or a participant of the licensed CS facility operated by Options Clearing House Pty Limited, means:

 (a) in any case — the participant; or

 (b) if the participant is not a body corporate:

 (i) a person who is the spouse, or who is a relative, of the participant; or

 (ii) a trustee of a trust in relation to which the participant or a person of a kind mentioned in subparagraph (i) is capable of benefiting; or

 (iii) a body corporate of which the participant is an officer; or

 (iv) a body corporate in which the participant or a person of a kind mentioned in subparagraph (i) has a controlling interest; or

 (v) a body corporate in which the participant and a person of a kind mentioned in subparagraph (i) have a controlling interest; or

 (vi) a body corporate in which the participant and 2 or more persons of a kind mentioned in subparagraph (i) have a controlling interest; or

 (vii) a body corporate in which 2 or more persons of a kind mentioned in subparagraph (i) together have a controlling interest; or

 (c) if the participant is:

 (i) a person who is an officer of the body corporate; or

 (ii) a body corporate that is related to the first‑mentioned body corporate; or

 (iii) a person who is the spouse, or who is a relative, of a person of a kind mentioned in subparagraph (i); or

 (iv) a trustee of a trust in relation to which a person of a kind mentioned in subparagraph (i) or (iii) is capable of benefiting; or

 (v) a body corporate in which a person of a kind mentioned in subparagraph (i) or (iii) has, or 2 or more such persons together have, a controlling interest; or

 (d) if the participant is a partner in a participant of the participating market licensee or licensed CS facility and is not a body corporate:

 (i) a person who is a partner in the participant; or

 (ii) a person who is the spouse, or who is a relative, of a partner (not being a body corporate) in the participant; or

 (iii) a trustee of a trust in relation to which a person of a kind mentioned in subparagraph (i) or (ii) is capable of benefiting; or

 (iv) a person who is an officer of a body corporate that is a partner in the participant; or

 (v) a body corporate of which a person of a kind mentioned in subparagraph (i), (ii) or (iii) is an officer, or in which such a person has, or 2 or more such persons together have, a controlling interest; or

 (e) if the participant is a partner in a participant of the participating market licensee or licensed CS facility and is a body corporate:

 (i) a person who is an officer of a body corporate that is a partner in the participant; or

 (ii) a body corporate that is related to the first‑mentioned body corporate; or

 (iii) a person who is a partner in the participant; or

 (iv) a person who is the spouse, or who is a relative, of a person (other than a body corporate) of a kind mentioned in subparagraph (i) or (iii); or

 (v) a trustee of a trust in relation to which a person of a kind mentioned in subparagraph (i), (iii) or (iv) is capable of benefiting; or

 (vi) a body corporate in which a person of a kind mentioned in subparagraph (i), (iii) or (iv) has, or 2 or more such persons together have, a controlling interest.

[12] Subregulation 7.5.04 (2)

after

subregulation (1)

insert

or (1A)

[13] Subregulation 7.5.04 (3)

after

subregulation (1)

insert

or (1A)

[14] After subregulation 7.5.06 (2)

insert

 (3) For this Part, the exercise of an option contract over securities, being an option contract that:

 (a) was entered into on the financial market of a participating market licensee; and

 (b) is required, by the operating rules of Options Clearing House Pty Limited, to be reported to the participating market licensee;

is taken to be a sale and purchase of securities.

[15] Subregulation 7.5.07 (1)

omit

Subdivision 4.9),

insert

Subdivisions 4.5 and 4.9),

[16] Subregulation 7.5.07 (4)

substitute

 (4) An act done on behalf of the person by:

 (a) the holder of a dealers licence; or

 (b) an exempt dealer; or

 (c) the holder of an Australian financial services licence; or

 (d) a person who is exempted from holding an Australian financial services licence by virtue of subsection 911A (2) of the Act;

must be disregarded.

[17] Regulation 7.5.08

omit

Subdivision 4.9,

insert

Subdivisions 4.5 and 4.9,

[18] Paragraph 7.5.12 (1) (a)

substitute

 (a) any of the following occurs:

 (i) a number of securities are transferred to a participating market licensee, or a participant of a participating market licensee, in respect of a number of transactions;

 (ii) a payment is made to a participating market licensee, or a participant of a participating market licensee, in respect of a number of transactions;

 (iii) a number of securities are transferred to Options Clearing House Pty Limited or a participant of the licensed CS facility operated by Options Clearing House Pty Limited in respect of a number of transactions;

 (iv) a payment is made to Options Clearing House Pty Limited or a participant of the licensed CS facility operated by Options Clearing House Pty Limited in respect of a number of transactions; and

[19] Paragraph 7.5.12 (1) (c)

after

participating market licensee

insert

or a licensed CS facility

[20] Subregulation 7.5.19 (2)

omit

regulation 7.5.56

insert

regulation 7.5.66

[21] After subregulation 7.5.19 (2)

insert

 (3) For Subdivision 4.3, if:

 (a) a participant of the licensed CS facility operated by Options Clearing House Pty Limited (the transacting participant) enters into a reportable transaction; and

 (b) under the operating rules of Options Clearing House Pty Limited, another participant (the clearing participant) has the obligation to complete the transaction and all obligations ancillary to that completion;

regulations 7.5.20 to 7.5.27 (inclusive) apply in relation to the function of completing the transaction, as if the clearing participant, and not the transacting participant, had entered into the transaction.

 (4) For Subdivision 4.9, if:

 (a) a participant of the licensed CS facility operated by Options Clearing House Pty Limited (the transacting member) enters into a reportable transaction; and

 (b) under the operating rules of Options Clearing House Pty Limited, another participant (the clearing participant) has the obligation to complete the transaction and all obligations ancillary to that completion;

regulation 7.5.66 applies in relation to the function of completing the transaction as if the clearing participant, and not the transacting participant, had entered into the transaction.

[22] Regulation 7.5.32

omit

[23] Regulation 7.5.39

omit

[24] Paragraph 7.5.40 (1) (a)

omit

a subsidiary

insert

a central counter-party

[25] Paragraph 7.5.40 (1) (a)

omit

transactions (as defined in the operating rules)

insert

transactions

[26] Paragraph 7.5.40 (1) (a)

omit

the subsidiary

insert

the central counter-party

[27] Paragraph 7.5.40 (1) (a)

omit

transactions (as so defined)

insert

transactions

[28] Subparagraph 7.5.40 (1) (b) (i)

omit

the subsidiary,

insert

the central counter-party,

[29] Subparagraph 7.5.40 (1) (b) (ii)

omit

the subsidiary,

insert

the central counter-party,

[30] Subregulation 7.5.40 (2)

substitute

 (2) Entitlement to make the claim is not affected by a dealer ceasing to be a participant of:

 (a) a participating market licensee; or

 (b) a licensed CS facility;

after the obligation arose.

[31] After subregulation 7.5.40 (3)

insert

 (4) In this regulation:

central counter-party, in relation to a transaction, means:

 (a) if TNS Clearing Pty Limited is the counter-party in the transaction — TNS Clearing Pty Limited; and

 (b) if Options Clearing House Pty Limited is the counter-party in the transaction — Options Clearing House Pty Limited.

transaction means a transaction that is a transaction in securities defined in subsection 92 (1) of the old Corporations Act.

[32] Paragraph 7.5.41 (1) (a)

omit

a subsidiary of the settlement authority

insert

a central counter-party

[33] Paragraph 7.5.41 (1) (a)

omit

the subsidiary

insert

the central counter-party

[34] After subregulation 7.5.41 (5)

insert

 (6) In this regulation:

central counter-party, in relation to a transaction, means:

 (a) if TNS Clearing Pty Limited is the counter-party in the transaction — TNS Clearing Pty Limited; and

 (b) if Options Clearing House Pty Limited is the counter-party in the transaction — Options Clearing House Pty Limited.

[35] Subregulation 7.5.45 (2)

omit

its subsidiary’s default.

insert

the default of a central counter-party.

[36] Subregulation 7.5.45 (3)

omit

its subsidiary’s default,

insert

the default of a central counter-party,

[37] After subregulation 7.5.45 (4)

insert

 (5) In this regulation:

central counter-party, in relation to a transaction, means:

 (a) if TNS Clearing Pty Limited is the counter-party in the transaction — TNS Clearing Pty Limited; and

 (b) if Options Clearing House Pty Limited is the counter-party in the transaction — Options Clearing House Pty Limited.

[38] Regulation 7.5.47

omit

[39] Part 7.5, Subdivision 4.6

omit

[40] Subparagraph 7.5.64 (5) (b) (i)

after

participating market licensee

insert

or licensed CS facility

[41] Subparagraph 7.5.65 (1) (b) (i)

after

participating market licensee

insert

or licensed CS facility

[42] Paragraph 7.5.68 (a)

substitute

 (a) the dealer was at that time a participant of at least 1 of the following:

 (i) a participating market licensee;

 (ii) the licensed CS facility operated by Options Clearing House Pty Limited; and

[43] Paragraph 7.5.81 (4) (a)

substitute

 (a) if the claim relates to a participating market licensee — the participating market licensee must make the appointment, or the participating market licensees must jointly make the appointment; and

 (aa) if the claim relates to the licensed CS facility operated by Options Clearing House Pty Limited — Options Clearing House Pty Limited must make the appointment; and

 (ab) if the claim relates to a participating market licensee and to the licensed CS facility operated by Options Clearing House Pty Limited — the participating market licensee and Options Clearing House Pty Limited must jointly make the appointment; and

[44] Paragraph 7.5.81 (4) (d)

substitute

 (d) at least 2 of the persons must not be any of the following:

 (i) if the claim relates to a participating market licensee:

 (A) an officer or employee of the participating market licensee;

 (B) a participant of the participating market licensee;

 (C) an officer or employee of a participant of the participating market licensee;

 (ii) if the claim relates to the licensed CS facility operated by Options Clearing House Pty Limited:

 (A) an officer or employee of Options Clearing House Pty Limited;

 (B) a participant of the licensed CS facility;

 (C) an officer or employee of a participant of the licensed CS facility;

 (iii) if the claim relates to a participating market licensee and to the licensed CS facility operated by Options Clearing House Pty Limited:

 (A) an officer or employee of the participating market licensee;

 (B) a participant of the participating market licensee;

 (C) an officer or employee of a participant of the participating market licensee;

 (D) an officer or employee of Options Clearing House Pty Limited;

 (E) a participant of the licensed CS facility;

 (F) an officer or employee of a participant of the licensed CS facility;

 (iv) in any case — an officer or employee of the SEGC.

[45] Paragraph 7.11.30 (2) (f)

substitute

 (f) if TNS Clearing Pty Limited is the counter-party in the transaction — TNS Clearing Pty Limited;

 (g) if Options Clearing House Pty Limited is the counter-party in the transaction — Options Clearing House Pty Limited.

[46] Paragraph 7.11.31 (2) (e)

substitute

 (e) if TNS Clearing Pty Limited is the counter-party in the transaction — TNS Clearing Pty Limited;

 (f) if Options Clearing House Pty Limited is the counter-party in the transaction — Options Clearing House Pty Limited.

[47] Paragraph 7.11.32 (2) (f)

substitute

 (f) if TNS Clearing Pty Limited is the counter-party in the transaction — TNS Clearing Pty Limited;

 (g) if Options Clearing House Pty Limited is the counter-party in the transaction — Options Clearing House Pty Limited.

1. These Regulations amend Statutory Rules 2001 No. 193, as amended by 2001 Nos. 208, 318 and 319 (rr 7.9.10 and 7.9.11 were disallowed by the Senate on 16 September 2002); 2002 Nos. 15, 16 (rr 7.9.10, 7.9.11 (1), 7.9.11 (1) (a), 7.9.11 (1) (b) and 7.9.11 (2) were disallowed by the Senate on 16 September 2002), 41, 53, 126, 145, 182 and 265.

2. Notified in the Commonwealth of Australia Gazette on 28 November 2002.