Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 1208

1208. (1) A futures broker shall maintain separately from other records such
records as correctly record and explain dealings in futures contracts by the
broker on the broker's own account including, but not limited to, records
specifying:

   (a)  a description of each of those dealings together with the date on
        which and the time at which:

        (i)    the instructions (if any) for each of those dealings were
               received by the futures broker;

        (ii)   the instructions (if any) for each of those dealings were
               transmitted to the futures market on which the dealing was
               effected; and

        (iii)  the dealing was effected; and

   (b)  the source of the funds used for effecting those dealings.

(2) A futures broker shall be deemed not to have maintained records in
compliance with subsection (1) unless the entries in the records are made in
writing in the English language or are made in such a manner as will enable
them to be readily accessible and to be readily converted into writing in the
English language.

(3) A futures broker shall not knowingly take the other side of an order of a
client of the broker in relation to a futures contract unless:

   (a)  the client has consented to the broker taking the other side of the
        order in relation to that futures contract; or

   (b)  in dealing in that futures contract on behalf of the client, the
        broker is to be taken, for the purposes of this Act, to be dealing in
        that futures contract on the broker's own account.

(4) For the purposes of subsection (3), a futures broker takes the other side
of an order of a client of the broker in relation to a futures contract where
the broker:

   (a)  when dealing on the broker's own account, assumes a bought position or
        sold position in relation to the contract; and

   (b)  when dealing on the instructions of the client, assumes the opposite
        sold position or bought position in relation to the contract.