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CORPORATIONS REGULATIONS 2001 2001 No. 193 - REG 7.3.16

Exemption from Chapter 7 — transactions in option contracts on the NZFOE market (Act s 30)
(1)
In this regulation:

"exempt futures market" means the futures market conducted by NZFOE and declared to be an exempt futures market in the declaration made under subsection 1127 (1) of the Act on 20 July 1993 and published in the Gazette on 10 August 1993.

"NZFOE" means the New Zealand Futures & Options Exchange Limited.

"NZFOE market" means the stock market operated by NZFOE in Australia by means of a computer facility through which:

(a)
offers to sell, purchase or exchange option contracts are regularly made or accepted; or

(b)
offers or invitations are regularly made, being offers or invitations that are intended, or may reasonably be expected, to result, whether directly or indirectly, in the making or acceptance of offers to sell, purchase or exchange option contracts; or

(c)
information is regularly provided about the prices at which, or the consideration for which, particular persons, or particular classes of persons, propose, or may reasonably be expected, to sell, purchase or exchange option contracts.

option contract is an option contract, within the meaning of section 9 of the Act, relating to securities in respect of which option contracts may be traded on the NZFOE market.

"SFE" means the Sydney Futures Exchange Ltd.

(2)
Chapter 7 of the Act does not have effect in relation to a transaction involving an option contract on the NZFOE market, subject to the following conditions:

(a)
Chapter 8 of the Act (other than Part 8.6) applies to the transaction as if the option contract were an eligible exchange-traded option;

(b)
a person involved in the transaction is subject to the prohibitions and obligations set out in Chapter 8 of the Act (other than Part 8.6) as if the option contract were an eligible exchange-traded option;

(c)
a person involved in the transaction, who contravenes a provision of Chapter 8 of the Act (other than Part 8.6), is subject to the penalties set out in Division 2 of Part 9.4 of the Act, or any other relevant provision of the Act, as if the option contract were an eligible exchange-traded option;

(d)
NZFOE is subject to the prohibitions and obligations set out in Chapter 8 of the Act (other than Part 8.6) as if the option contract were an eligible exchange-traded option;

(e)
if NZFOE contravenes a provision of Chapter 8 of the Act (other than Part 8.6), NZFOE is subject to the penalties set out in Division 2 of Part 9.4 of the Act, or any other relevant provision of the Act, as if the option contract were an eligible exchange-traded option;

(f)
ASIC has the same powers in relation to the NZFOE market as it has under Chapter 8 of the Act (other than Part 8.6) in relation to a futures market of a futures exchange, except that ASIC may not give a direction to NZFOE under paragraph 1138 (1) (d), (e) or (f) of the Act;

(g)
ASIC has the same powers in relation to the transaction, and a person involved in the transaction, as it has under Chapter 8 of the Act (other than Part 8.6) as if the option contract were an eligible exchange-traded option;

(h)
the NZFOE market must at all times be conducted in conjunction with the exempt futures market as if the markets were a single market;

(i)
NZFOE is subject to:

(i)
the conditions set out in the declaration relating to the exempt futures market, made under subsection 1127 (1) of the Act on 20 July 1993 and published in the Gazette on 10 August 1993; and
(ii)
section 1127 of the Act;
as if NZFOE were part of the exempt futures market.


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