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1996 No. 26 CORPORATIONS REGULATIONS (AMENDMENT) - REG 2

2. New Divisions 2, 3, 4 and 5
2.1 After regulation 1.2.11, insert:
      "Division 2-Deliverable bond futures contracts


"Subdivision A-Preliminary What is a deliverable bond futures contract?

"1.2.12. (1) For the purposes of this Division, a deliverable bond futures
contract is a standardised agreement under which a person has a Chapter 8
obligation to transfer, or to accept a transfer of, a particular quantity of 3
year, or 10 year, Treasury bonds or a chose in action representing the bonds:

   (a)  at a particular future time; and

   (b)  for a particular price, or a price to be calculated in a particular
        manner.

"(2) An agreement is a deliverable bond futures contract:

   (a)  whether or not the subject matter of the agreement is in existence;
        and

   (b)  whether or not the agreement has any other effect; and

   (c)  whether or not the agreement is capable of being varied or discharged
        before that future time; and

   (d)  where it appears likely at the time the agreement is entered into,
        having regard to all relevant circumstances (other than the respective
        intentions of the person in the sold position, and the person in the
        bought position, under the agreement), that:

        (i)    the Chapter 8 obligation of the person in the sold position
               under the agreement to transfer bonds in accordance with that
               agreement will be discharged otherwise than by the person
               effecting the transfer; or

        (ii)   the Chapter 8 obligation of the person in the bought position
               under the agreement to accept transfer of the bonds in
               accordance with that agreement will be discharged otherwise
               than by the person accepting the transfer; or

        (iii)  the person in the sold position, or bought position, under the
               agreement will assume an offsetting bought position, or
               offsetting sold position, as the case may be, under another
               agreement of the same kind; and

   (e)  whether the Chapter 8 obligation of a person in the sold position
        under the agreement to transfer bonds in accordance with that
        agreement is discharged by that person, or another person, effecting
        the transfer; and

   (f)  whether or not the Chapter 8 obligation referred to in paragraph (e)
        is discharged by the novation of a chose in action; and

   (g)  whether or not a person in the bought position under the agreement
        receives a proprietary interest in a particular bond.



"Subdivision B-Application of Chapter 7 of the Corporations Law
to deliverable bond futures contracts Prescribed Chapter 8 agreement

"1.2.13. A deliverable bond futures contract is prescribed for the purposes of
paragraph 72A (1) (b) of the Corporations Law. Application of Chapter 7 of the
Corporations Law

"1.2.14. Chapter 7 of the Corporations Law does not apply in relation to a
deliverable bond futures contract.

"Subdivision C-Application of Chapter 8 of the Corporations
Law to deliverable bond futures contracts Application of Chapter 8 of the
Corporations Law

"1.2.15. (1) Subject to subregulation (2), Chapter 8 of the Corporations Law
applies in relation to a deliverable bond futures contract as if it were a
futures contract.

"(2) Where a member of the Reserve Bank Information and Transfer System (known
as RITS) transfers bonds which are the subject of a deliverable bond futures
contract then, for the purposes of that transfer, Part 8.3 and sections 1206,
1207, 1209, 1210, 1234 and 1235 of the Corporations Law do not apply to that
member.



"Subdivision D-Modifications of the Corporations Law applying
in relation to deliverable bond futures contracts Modification of section 9 of
the Corporations Law

"1.2.16. Section 9 of the Corporations Law is modified in relation to its
application to deliverable bond futures contracts:

   (a)  by omitting the definition of 'bought position' and substituting:
'"bought position", in relation to a deliverable bond futures contract, means
the position where, under the contract, a person has a Chapter 8 obligation to
accept a transfer of a particular quantity of 3 year, or 10 year, Treasury
bonds, or a chose in action representing the bonds, in accordance with the
contract;'; and

   (b)  by omitting the definition of 'sold position' and substituting:
'"sold position", in relation to a deliverable bond futures contract, means
the position where, under the contract, a person has a Chapter 8 obligation to
transfer a particular quantity of 3 year, or 10 year, Treasury bonds, or a
chose in action representing the bonds, in accordance with the contract;'.
(NOTE: For the definitions of other terms used in this Division, see section 9
of the Corporations Law.)



"Division 3-Futures options over deliverable bond
futures contracts

"Subdivision A-Preliminary What is a futures option over a deliverable bond
futures contract?

"1.2.17. For the purposes of this Division:

   (a)  a futures option over a deliverable bond futures contract is an
        option, or a Chapter 8 right, to assume a bought position, or a sold
        position, in relation to the contract:

        (i)    at a specified price or value; and

        (ii)   within a specified period; and

   (b)  'deliverable bond futures contract' has the same meaning as in
        Division 2 of this Part.



"Subdivision B-Application of Chapter 7 of the Corporations
Law to futures options over deliverable bond futures contracts Prescribed
Chapter 8 agreement

"1.2.18. A futures option over a deliverable bond futures contract is
prescribed for the purposes of paragraph 72A (1) (b) of the Corporations Law.
Application of Chapter 7 of the Corporations Law

"1.2.19. Chapter 7 of the Corporations Law does not apply in relation to a
futures option over a deliverable bond futures contract.



"Subdivision C-Application of Chapter 8 of the Corporations
Law to futures options over deliverable bond futures contracts Application of
Chapter 8 of the Corporations Law

"1.2.20. Chapter 8 of the Corporations Law applies in relation to a futures
option over a deliverable bond futures contract as if it were a futures
contract. (NOTE: For the definitions of terms used in this Division, see
section 9 of the Corporations Law.)

           "Division 4-Deliverable share futures contracts


"Subdivision A-Preliminary What is a deliverable share futures contract?

"1.2.21. (1) For the purposes of this Division, a deliverable share futures
contract is a standardised agreement under which a person has a Chapter 8
obligation to transfer, or to accept a transfer of, a particular quantity of
shares of a listed corporation:

   (a)  at a particular future time; and

   (b)  for a particular price, or a price to be calculated in a particular
        manner.

"(2) An agreement is a deliverable share futures contract:

   (a)  whether or not the subject matter of the agreement is in existence;
        and

   (b)  whether or not the agreement has any other effect; and

   (c)  whether or not the agreement is capable of being varied or discharged
        before that future time; and

   (d)  where it appears likely at the time the agreement is entered into,
        having regard to all relevant circumstances (other than the respective
        intentions of the person in the sold position, and the person in the
        bought position, under the agreement), that:

        (i)    the Chapter 8 obligation of the person in the sold position
               under the agreement to transfer shares in accordance with that
               agreement will be discharged otherwise than by the person
               effecting the transfer; or

        (ii)   the Chapter 8 obligation of the person in the bought position
               under the agreement to accept transfer of the shares in
               accordance with that agreement will be discharged otherwise
               than by the person accepting the transfer; or

        (iii)  the person in the sold position, or bought position, under the
               agreement will assume an offsetting bought position, or
               offsetting sold position, as the case may be, under another
               agreement of the same kind; and

   (e)  whether the Chapter 8 obligation of a person in the sold position
        under the agreement to transfer shares in accordance with that
        agreement is discharged by that person, or another person, effecting
        the transfer.



"Subdivision B-Application of certain provisions of Chapter 7
of the Corporations Law to deliverable share futures contracts Prescribed
Chapter 8 agreement

"1.2.22. A deliverable share futures contract is prescribed for the purposes
of paragraph 72A (1) (b) of the Corporations Law. Application of certain
provisions of Chapter 7 of the Corporations Law

"1.2.23. (1) Chapter 7 of the Corporations Law, other than Part 7.2A,
subsection 979 (1) (as modified), sections 995 and 998, Division 2A of Part
7.11, Part 7.13 and section 1114, does not apply in relation to a deliverable
share futures contract.

"(2) Notwithstanding subregulation (1), Part 7.10 of the Corporations Law
applies where a claim is not directly in relation to a transfer of shares
between the person in the bought position and the person in the sold position
under a deliverable share futures contract. (NOTE: For example, it is intended
that if a dealer fraudulently or negligently uses shares held for a client to
settle another client's deliverable share futures contract, the
first-mentioned client may make a claim under Part 7.10.)



"Subdivision C-Application of Chapter 8 of the Corporations
Law to deliverable share futures contracts Application of Chapter 8 of the
Corporations Law

"1.2.24. (1) Subject to subregulation (2), Chapter 8 of the Corporations Law
applies in relation to a deliverable share futures contract as if it were a
futures contract.

"(2) Where a SCH participant deals in shares which are the subject of a
deliverable share futures contract then, for the purposes of that dealing,
Part 8.3 and sections 1206, 1207, 1209, 1210, 1234 and 1235 of the
Corporations Law do not apply to that participant.



"Subdivision D-Modifications of the Corporations Law applying
in relation to deliverable share futures contracts Modification of section 9
of the Corporations Law

"1.2.25. Section 9 of the Corporations Law is modified in relation to its
application to deliverable share futures contracts:

   (a)  by omitting the definition of 'bought position' and substituting:
'"bought position", in relation to a deliverable share futures contract, means
the position where, under the contract, a person has a Chapter 8 obligation to
accept a transfer of shares in accordance with the contract;'; and

   (b)  by omitting the definition of 'sold position' and substituting:
'"sold position", in relation to a deliverable share futures contract, means
the position where, under the contract, a person has a Chapter 8 obligation to
transfer shares in accordance with the contract;'. Modification of subsection
979 (1) of the Corporations Law

"1.2.26. Subsection 979 (1) of the Corporations Law is modified, in its
application to a deliverable share futures contract, by omitting all words
after "The Board may" and substituting "seek the assistance of the Sydney
Futures Exchange to determine whether a claim against SEGC relates to a
deliverable share futures contract.". Modification of Division 1 of Part 8.7
of the Corporations Law

"1.2.27. In spite of section 1251 of the Corporations Law, for the purposes of
sections 1252 to 1257 (inclusive) of the Corporations Law, a deliverable share
futures contract concerns a body corporate if the contract relates to shares
of the body corporate. (NOTE: For the definitions of other terms used in this
Division, see section 9 of the Corporations Law.)



"Division 5-Futures options over deliverable
share futures contracts

"Subdivision A-Preliminary What is a futures option over a deliverable share
futures contract?

"1.2.28. For the purposes of this Division:

   (a)  a futures option over a deliverable share futures contract is an
        option, or a Chapter 8 right, to assume a bought position, or a sold
        position, in relation to the contract:

        (i)    at a specified price or value; and

        (ii)   within a specified period; and

   (b)  'deliverable share futures contract' has the same meaning as in
        Division 4 of this Part.



"Subdivision B-Application of certain provisions of Chapter 7
of the Corporations Law to futures options over deliverable
share futures contracts Prescribed Chapter 8 agreement

"1.2.29. A futures option over a deliverable share futures contract is
prescribed for the purposes of paragraph 72A (1) (b) of the Corporations Law.
Application of certain provisions of Chapter 7 of the Corporations Law

"1.2.30. Chapter 7 of the Corporations Law, other than Division 2A of Part
7.11, does not apply in relation to a futures option over a deliverable share
futures contract.



"Subdivision C-Application of Chapter 8 of the Corporations
Law to futures options over deliverable share futures contracts Application of
Chapter 8 of the Corporations Law

"1.2.31. Chapter 8 of the Corporations Law applies in relation to a futures
option over a deliverable share futures contract as if it were a futures
contract.



"Subdivision D-Modifications of the Corporations Law applying
in relation to futures options over deliverable share
futures contracts Modification of Division 1 of Part 8.7 of the Corporations
Law

"1.2.32. In spite of section 1251 of the Corporations Law, for the purposes of
sections 1252 to 1257 (inclusive) of the Corporations Law, a futures option
over a deliverable share futures contract concerns a body corporate if the
contract relates to shares of the body corporate. (NOTE: For the definitions
of terms used in this Division, see section 9 of the Corporations Law.)". 


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