(1) A futures broker must 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; and
- (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 is taken 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 must 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
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.