Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 1206

1206. (1) A futures broker shall, in respect of a transaction, being the
acquisition or disposal of a futures contract, that is entered into by the
broker on behalf of another person, give as soon as practicable:

   (a)  in a case where the transaction is not an operation by the broker on a
        discretionary account-to that other person; or

   (b)  in a case where the transaction is an operation by the broker on a
        discretionary account-to the person, or to each person, as the case
        requires, who gave instructions to the broker authorising the broker
        to operate on the discretionary account, other than a person who
        agrees in the prescribed manner to waive the operation of this
        paragraph; a contract note that complies with subsection (3), (4) or
        (5), as the case requires.

(2) Subsection (1) does not require a futures broker to give a contract note
to a person in respect of a transaction if the person was at the time of the
transaction the holder of a futures brokers licence.

(3) A contract note given by a futures broker under subsection (1) in respect
of a transaction, being the acquisition or disposal of a futures contract
(other than a futures option or an eligible exchange-traded option), shall
include:

   (a)  the name or style under which the broker carries on business as a
        futures broker and the address of the principal place at which the
        broker so carries on business;

   (b)  the name of the person to whom the broker gives the contract note;

   (c)  the day on which the transaction took place;

   (d)  a description of the futures contract sufficient to identify the
        nature of the transaction, including:

        (i)    in a case where the futures contract is a commodity agreement-a
               description of the commodity and a statement of the contract
               price;

        (ii)   in a case where the futures contract is an adjustment
               agreement:

                (A)  a description of the class of adjustment agreements in
                     which the futures contract is included;

                (B)  a statement of the contract price; and

                (C)  if the transaction is the completion of the futures
                     contract-the value or worth (as determined in accordance
                     with the futures contract) of the futures contract at the
                     time of that completion; and

        (iii)  in a case where the transaction is a liquidating trade-details
               of the liquidating trade and of the futures contract that is
               intended to be closed out following the entering into of the
               liquidating trade;

   (e)  the deposit paid or payable in respect of the transaction;

   (f)  the month and year for the performance or settlement of the contract;

   (g)  in a case where the transaction took place on a futures market of a
        futures exchange or of a recognised futures exchange, or on an exempt
        futures market-a name or abbreviation by which the futures exchange,
        recognised futures exchange or exempt futures market, as the case may
        be, is generally known;

   (h)  a statement of the amount of commission charged or the rate (if any)
        at which the commission was charged; and

   (j)  a statement of the amounts (if any) of all stamp duties and other
        duties and taxes payable in connection with the transaction.

(4) A contract note given by a futures broker under subsection (1) in respect
of a transaction, being the acquisition or disposal of a futures option, shall
include:

   (a)  the matters specified in paragraphs (3) (a), (b), (c), (g), (h) and
        (j);

   (b)  a description of the class of futures contracts in which is included
        the futures contract to which the futures option relates;

   (c)  the month and year for performance or settlement of the futures
        contract to which the futures option relates;

   (d)  the date by which the purchaser of the futures option, in order to
        exercise the futures option, must declare an intention to exercise the
        futures option;

   (e)  a statement of the amount of the premium; and

   (f)  details of the price at which the purchaser of the futures option has,
        by virtue of the futures option, an option or Chapter 8 right to
        assume a bought position, or sold position, as the case requires, in
        relation to the futures contract to which the futures option relates.

(5) A contract note given by a futures broker under subsection (1) in respect
of a transaction, being the acquisition or disposal of an eligible
exchange-traded option (in this subsection called the "option"), shall
include:

   (a)  the matters specified in paragraphs (3) (a), (b), (c), (g), (h) and
        (j);

   (b)  a description of the commodity or index to which the option relates;

   (c)  the date by which the purchaser of the option, in order to exercise
        the option, must declare an intention to exercise the option;

   (d)  a statement of the amount of the premium; and

   (e)  details of:

        (i)    in a case where the option relates to a commodity-the price at
               which the purchaser of the option has, by virtue of the option,
               an option or right to purchase, or sell, as the case requires,
               that commodity; or

        (ii)   in a case where the purchaser of the option has, by virtue of
               the option, an option or right to be paid an amount of money to
               be determined by reference to the amount by which a specified
               number is greater or less than the number of a specified
               index-the specified number and the manner in which that amount
               of money is to be determined.

(6) A futures broker shall not include in a contract note given under
subsection (1), as the name of a person with or on behalf of whom the broker
has entered into the transaction, a name that the broker knows, or could
reasonably be expected to know, is not a name by which that person is
ordinarily known.

(7) For the purposes of this section, a futures contract is included in the
same class of futures contracts as another futures contract if, and only if,
the first-mentioned futures contract is of the same kind as the other futures
contract.