Australian Securities and Investments Commission Market Integrity Rules (ASX Market-Capital) 2014 (Cth)

ASIC Market Integrity Rules

(ASX Market-Capital) 2014

I, Oliver Harvey, acting with the written consent of the Minister, make the following ASIC Market Integrity Rules (ASX Market-Capital) 2014 under subsection 798G(1) of the Corporations Act 2001.

Dated this 20^th day of May 2014

Signed by Oliver Harvey

as delegate of the Australian Securities and Investments Commission

ASIC Market Integrity Rules (ASX Market-Capital) 2014

Contents

Chapter 1: Introduction

Part 1.1     Preliminary

Part 1.2     Waiver

Part 1.3     Notice, notification and service of documents

Part 1.4     Interpretation

Part 1.5     Transitional

Chapter 8: Capital requirements

Part 8.1     Preliminary

Part 8.2 Application

Part 8.3     Participants with Trading Permission for Futures Market Transactions only

Chapter 9: Accounts and audit

Part 9.1 Application of Rules

Part 9.2 Risk Based Capital Requirements—Reporting

Part 9.3 NTA Requirements—Reporting

Part 9.4 General

Part 9.5 Scope of audits

Schedule 1A: Capital liquidity requirements

Part S1A.1 Definitions and Interpretation

Part S1A.2 Obligations of Market Participants

Schedule 1B: NTA requirements

Part S1B.1 Interpretation

Part S1B.2 Meaning and calculation of Net Tangible Assets (NTA)

Part S1B.3 Minimum NTA requirement

Part S1B.6 Records, accounts and returns

Part S1B.8 Approved subordinated debt

Annexure 1 to Schedule 1A: Counterparty Risk Requirement

Part A1.1 Counterparty Risk Requirement

Part A1.2 Methods

Annexure 2 to Schedule 1A: Large exposure risk requirement

Part A2.1 Counterparty large exposure risk requirement

Part A2.2 Issuer large exposure risk requirement

Part A2.3 Methods

Annexure 3 to Schedule 1A: Position risk requirement

Part A3.1 Equity position risk amount

Part A3.2 Standard method—Equity position risk

Part A3.3 Building block method––Equity position risk

Part A3.4 Contingent loss matrix method—Equity position risk

Part A3.5 Margin method—Equity position risk

Part A3.6 Basic method—Equity position risk

Part A3.7 Arbitrage method––Equity position risk

Part A3.8 Calculation of Equity Equivalent positions––Equity position risk

Part A3.9 Calculation of equity net positions––Equity position risk

Part A3.10 Debt position risk amount

Part A3.11 Standard method—Debt position risk

PartA3.12 Building block method—Debt position risk

Part A3.13 Contingent loss matrix method—Debt position risk

Part A3.14 Margin method—Debt position risk

Part A3.15 Basic method—Debt position risk

Part A3.16 Calculation of Debt Equivalent positions—Debt position risk

Part A3.17 Calculation of debt net positions—Debt position risk

A3.18 Foreign exchange position risk amount

Part A3.19 Standard method—Foreign exchange position risk

Part A3.20 Contingent loss matrix method—Foreign exchange position risk

Part A3.21 Calculation of Foreign Exchange Equivalent positions— Foreign exchange position risk

Part A3.22 Calculation of a converted net open position—Foreign exchange position risk

Annexure 4 to Schedule 1A: Underwriting Risk Requirement

Annexure 5 to Schedule 1A: Tables

Part A5.1 Position Risk

Part A5.2 Counterparty Risk

Part A5.3 Other

Schedule   1C: Forms

Sch 1C Form 1 Pt 1     Ad Hoc Risk-Based Return

Schedule 1C Form 2 Part 2: Risk Based Capital Requirements – Risk-Based Return Declaration

Sch 1C Form 3A Pt 1     Risk-Based Return (Summary, Monthly and Annual)

Schedule 1C Form 5: Risk Based Capital Requirements and NTA Requirements – Auditor’s Report

Schedule 1C Form 6: Risk Based Capital Requirements and NTA Requirements – Key Risks and Internal Systems Statement

Schedule 1C Form 7: Risk Based Capital Requirements – Partnership Statutory Declaration

Sch 1C Form 8 Pt 1     NTA Return (Ad Hoc, Monthly and Annual)

Schedule 1C Form 8 Part 2: NTA Return Declaration

Sch 1C Form 9 Pt 1     Summary NTA Return

Chapter 1: Introduction

Part 1.1 Preliminary

1.1.1      Enabling legislation

ASIC makes this instrument under subsection 798G(1) of the Corporations Act.

1.1.2      Title

This instrument is ASIC Market Integrity Rules (ASX Market-Capital) 2014.

1.1.3      Commencement

This instrument commences on the later of:

(a)26 May 2014; and

(b)the day on which the instrument is registered under the Legislative Instruments Act 2003.

Note: An instrument is registered when it is recorded on the Federal Register of Legislative Instruments (FRLI) in electronic form: see Legislative Instruments Act 2003, s 4 (definition of register). The FRLI may be accessed at Scope of these Rules

These Rules apply to:

(a)the activities or conduct of the Market;

(b)the activities or conduct of persons in relation to the Market;

(c)the activities or conduct of persons in relation to Financial Products traded on the Market.

Note: There is no penalty for this Rule.

1.1.5      Entities that must comply with these Rules

The following entities must comply with these Rules:

(a)the Market Operator;

(b)Market Participants; and

(c)Other Regulated Entities;

as specified in each Rule.

Note: There is no penalty for this Rule.

1.1.6      Conduct by officers, Employees or agents

In these Rules, conduct engaged in on behalf of a person:

(a)by an officer, Employee, or other agent of the person, and whether or not within the scope of the actual or apparent authority of the officer, Employee, or other agent; or

(b)by any other person at the direction or with the consent or agreement (whether express or implied) of an officer, Employee, or other agent of the person, and whether or not the giving of the direction, consent or agreement is within the scope of the actual or apparent authority of the officer, Employee, or other agent,

is deemed to have been engaged in by the person.

Note: There is no penalty for this Rule.

1.1.7      State of mind of a person

(1) If for the purposes of these Rules in respect of conduct engaged in by a person, it is necessary to establish the state of mind of the person, it is sufficient to show that an officer, Employee, or other agent of the person, being an officer, Employee, or other agent by whom the conduct was engaged in and whether or not the conduct was within the scope of the actual or apparent authority of that officer, Employee, or other agent, had that state of mind.

(2) In subrule (1), a reference to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose of the person and the person’s reasons for the person’s intention, opinion, belief or purpose.

Note: There is no penalty for this Rule.

Part 1.2 Waiver

1.2.1      Waiver of Rules

(1) Subject to Rule 1.2.3, ASIC may relieve any person or class of persons from the obligation to comply with a provision of these Rules, either generally or in a particular case or category, and either unconditionally or subject to such conditions as ASIC thinks fit.

(2) If any conditions on a waiver given under subrule (1) are imposed, all of the conditions must be complied with for the waiver to be effective.

(3) ASIC may withdraw, in writing, a waiver given under subrule (1) at any time.

(4) Any request by a person for a waiver under subrule (1) must be in writing.

(5) Any waiver given under subrule (1), and any conditions imposed on that waiver, must be in writing.

(6) ASIC may publish notice of a waiver given under subrule (1).

Note: There is no penalty for this Rule.

1.2.2      Compliance with conditions

Failure to comply with a condition imposed under Rule 1.2.1 is a contravention of this Rule.

Maximum penalty: $1,000,000

1.2.3      Period during which relief applies

ASIC may specify the period or specific event during which any relief from an obligation to comply with a provision of these Rules may apply.

Note: There is no penalty for this Rule.

1.2.4      Register

(1) ASIC may establish and maintain a register for recording details of relief granted under Rule 1.2.1 and may enter the following details in the register:

(a)the date that the relief takes effect;

(b)the person or class of persons relieved from the obligation;

(c)the provision to which the relief applies;

(d)brief reasons for the relief; and

(e)any conditions that apply to the relief.

(2) ASIC may publish the register referred to in subrule (1).

Note: There is no penalty for this Rule.

Part 1.3 Notice, notification and service of documents

1.3.1      Market Participant to have email

A Market Participant must acquire and maintain an operating email system for the purposes of receiving notices under these Rules.

Note: There is no penalty for this Rule.

1.3.2      Methods of giving notice in writing

Unless otherwise specified in a Rule, ASIC may give a notice under these Rules by any of the following methods:

(a)delivering it to the recipient personally;

(b)leaving it at or by sending it by courier or post to the address of the recipient last notified to ASIC;

(c)sending it by facsimile to the recipient’s facsimile number last notified to ASIC;

(d)a circular or bulletin addressed to a class of persons and delivered or communicated by any means permitted under this Rule;

(e)specific email by any method which identifies a person or person’s title as addressee and no notice of non-delivery has been received;

(f)broadcast email by any method which identifies the addressee and which, having regard to all the relevant circumstances at the time, was as reliable as appropriate for the purposes for which the information was communicated.

Note: There is no penalty for this Rule.

Part 1.4 Interpretation

1.4.1      References to time

In these Rules a reference to time is to the time in Sydney, Australia.

Note: There is no penalty for this Rule.

1.4.2      Words and expressions defined in the Corporations Act

Words and expressions defined in the Corporations Act will unless otherwise defined or specified in these Rules or the contrary intention appears, have the same meaning in these Rules.

Note: There is no penalty for this Rule.

1.4.3      Definitions

“AQUA Product” means a Financial Product which is:

(a)a Managed Fund Product;

(b)an ETF Security; or

(c)a Structured Product;

which is admitted to Trading Status as an AQUA Product or to the AQUA Quote Display Board.

“AQUA Product Issuer” means an entity which issues, distributes or makes available AQUA Products and which has been admitted as an AQUA Product Issuer.

“AQUA Quote Display Board” means the facility provided by the Market Operator for AQUA Product Issuers and Trading Participants to advertise their interest in acquiring or disposing of AQUA Products.

“ASIC” means the Australian Securities and Investments Commission.

“ASX” means ASX Limited (ACN 008 624 691).

“Australian ADI” has the meaning given by section 9 of the Corporations Act.

“Business Day” means a day other than a Saturday, Sunday, New Year’s Day, Good Friday, Easter Monday, Christmas Day or Boxing Day.

“Cash Market Product” means a Quoted Product, a Warrant admitted to Trading Status, an AQUA Product admitted to Trading Status or to the AQUA Quote Display Board, a CGS Depository Interest admitted to Trading Status and any other product that the Market Operator authorises for trading on a Trading Platform as a Cash Market Product.

“CGS Depository Interest” has the meaning given by section 761A of the Corporations Act.

“Clearing Facility” means, in relation to a Market Transaction, the clearing and settlement facility, within the meaning of section 761A of the Corporations Act, through which the Market Transaction has been or will be cleared.

“Clearing Participant” means a person admitted as a participant under the Clearing Rules.

“Clearing Rules” means:

(a)in relation to a particular Clearing Facility, the operating rules, procedures, practices, directions, decisions and requirements of that Clearing Facility;

(b)in relation to a particular Clearing Participant, the rules of the Clearing Facility to which that Clearing Participant is subject.

“Corporations Act” means the Corporations Act 2001 (Cth).

“Derivative” has the meaning given by section 761D of the Corporations Act.

“Derivatives Market Contract” means a Futures Market Contract, an Options Market Contract and any other contract that the Market Operator authorises for trading on a Trading Platform as a Derivatives Market Contract.

“Derivatives Market Transaction” means a transaction between Trading Participants for one or more Derivatives Market Contracts.

“Employee” in relation to a Market Participant includes a director, employee, officer, agent, representative, consultant or adviser of that Market Participant, or an independent contractor who acts for or by arrangement with a Market Participant.

“ETF” means a Managed Fund:

(a)which is listed on the Market or admitted to Trading Status as an AQUA Product or to the AQUA Quote Display Board;

(b)with power and approval to continuously issue and have quoted on the Market, Equity Securities in the Managed Fund;

(c)which provides for the issue of new Equity Securities in return for the subscriber transferring to the Managed Fund a portfolio of Securities; and

(d)for which the price of the Underlying Instrument is continuously disclosed or can be immediately ascertained.

“ETF Security” means a Financial Product issued by or provided pursuant to an ETF.

“Equity Securities” means:

(a)shares in a body corporate or an unincorporated body other than redeemable preference shares which are Loan Securities in accordance with paragraph (c) of the definition of Loan Securities; or

(b)interests in a managed investment scheme, except those referred to in paragraph (d) of the definition of Loan Securities; or

(c)renounceable and non-renounceable rights to subscribe for Securities other than Loan Securities; or

(d)options over unissued Securities other than Loan Securities; or

(e)convertible notes; or

(f)any Securities which are determined by the Market Operator to be Equity Securities,

but does not include Options Market Contracts, or Securities determined to be Loan Securities by the Market Operator.

“Family Trust” means a trust in which:

(a)the person or the Immediate Family of the person is the sole or majority beneficiary; or

(b)the person has the ability to remove the trustee of the trust and replace that trustee with his or her own nominee.

“Financial Product” has the meaning given by Division 3 of Part 7.1 of the Corporations Act.

“Futures Market Contract” means a contract on the terms of a Futures Series.

“Futures Market Transaction” means a Market Transaction for one or more Futures Market Contracts.

“Futures Series” means a set of contractual terms on which futures contracts are authorised for trading by the Market Operator.

“Immediate Family” in relation to a person, means that person’s spouse and any non-adult children.

“Issuer” means, in relation to a Cash Market Product, the legal entity which issues the Cash Market Product.

“Listing Rules” has the meaning given by section 761A of the Corporations Act.

“Loan Securities” means:

(a)debentures, stocks or bonds issued or proposed to be issued by a government; or

(b)debentures of a body corporate or an unincorporated body; or

(c)redeemable preference shares which have a fixed and certain date for redemption, other than shares having a participating entitlement to rights or options referred to in paragraphs (c) and (d) of the definition of Equity Securities; or

(d)interests in a managed investment scheme, relating to a financial or business undertaking or scheme, common enterprise or investment contract, the trustee or representative or responsible entity of which only invests in or acquires one or more of Loan Securities, mortgages and cash; or

(e)any Securities which are determined by the Market Operator to be Loan Securities,

but does not include Options Market Contracts, or Securities determined to be Equity Securities by the Market Operator.

“Managed Fund Product” means a Financial Product issued by or provided pursuant to a Managed Fund.

“Managed Fund” means a managed investment scheme which is a registered managed investment scheme pursuant to section 601EB of the Corporations Act or a managed investment scheme which ASIC has exempted from those registration requirements.

“Market” means the market operated by the Market Operator under Australian Market Licence (ASX Limited) 2002.

“Market Listing Rules” means the Listing Rules of the Market.

“Market Operating Rules” means the Operating Rules of the Market, other than the Market Listing Rules.

“Market Operator” means ASX.

“Market Participant” means a participant in the Market admitted under the Market Operating Rules.

“Market Transaction” means a transaction for one or more Products, entered into on a Trading Platform or reported to the Market Operator under the Market Operating Rules.

“Official Quotation”, in relation to Financial Products, means admitted to quotation by the Market Operator under the Market Listing Rules.

“Operating Rules” has the meaning given by section 761A of the Corporations Act.

“Options Market Contract” means a contract on the terms of an Option Series.

“Option Series” means a set of contractual terms on which options are authorised for trading by the Market Operator.

“Order” means:

(a)in relation to Cash Market Products, an instruction to purchase or sell Cash Market Products, or an instruction to amend or cancel a prior instruction to purchase or sell Cash Market Products; and

(b)in relation to Derivatives Market Contracts, an instruction to enter into a Derivatives Market Transaction, or an instruction to amend or cancel a prior instruction to enter into a Derivatives Market Transaction.

“Other Regulated Entities” means entities prescribed by regulations made for the purposes of paragraph 798H(1)(c) of the Corporations Act, that must comply with these Rules.

“Principal Trader” means a Market Participant with Trading Permission for one or more Products which limits it to trading on its own behalf.

“Product” means a Cash Market Product or a Derivatives Market Contract, as applicable.

“Quoted Product” means a Financial Product that has been granted Official Quotation.

“Related Body Corporate” has the meaning given by section 50 of the Corporations Act.

“Representative” has the meaning given by section 910A of the Corporations Act.

“Rules” means these market integrity rules.

“Security” or “security” means:

(a)a “security” within the meaning of section 761A of the Corporations Act; or

(b)a managed investment product.

“Structured Product” means a Security or Derivative:

(a)which gives the holder financial exposure to the performance of one or more Underlying Instruments;

(b)the value of which is linked to the performance of those Underlying Instruments; and

(c)whereby investors do not have day to day control over the operation of the entity which issues or provides the Security or Derivative.

“Terms of Issue” means, in relation to Warrants, rights, conditions and obligations of the Warrant-Issuer and the holder of the Warrant.

“Trading Messages” means those messages submitted into a Trading Platform relating to trading functions, such as Orders, amendment or cancellation of Orders and the reporting or cancellation of Market Transactions on the Trading Platform.

“Trading Participant” means a Market Participant which has Trading Permission in respect of one or more Products.

“Trading Permission” means the right to submit Trading Messages in a Trading Platform.

“Trading Platform” means a facility made available by the Market Operator to Trading Participants for the entry of Trading Messages, the matching of Orders, the advertisement of invitations to trade and the reporting of transactions.

“Trading Status” means authorisation by the Market Operator for a CGS Depository Interest, a Warrant or AQUA Product to be traded on the Market.

“Underlying Instrument” means:

(a)in relation to Option Series and Futures Series, the instrument which underlies that Option Series or Futures Series;

(b)in relation to Warrants means the Financial Product, index, foreign or Australian currency or commodity which underlies that Warrant; and

(c)in relation to AQUA Products means the Financial Product, index, foreign or Australian currency, commodity or other point of reference for determining the value of the AQUA Product.

“Warrant” means:

(a)a financial instrument which gives the holder of the instrument the right:

(i)     to acquire the Underlying Instrument; or

(ii)    to require the Warrant-Issuer to acquire the Underlying Instrument;

(iii)   to be paid by the Warrant-Issuer 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 an index; or

(iv)   to be paid by the Warrant-Issuer an amount of money to be determined by reference to the amount by which the price or value of the Underlying Instrument is greater than or less than a specified price or value,

in accordance with the Terms of Issue and the Market Operating Rules that apply to Warrant-Issuers; or

(b)any other Financial Product that is a “warrant” within the meaning given to that term in Corporations Regulation 1.0.02 and which the Market Operator notifies Trading Participants is a Warrant.

“Warrant-Issuer” means an entity approved by the Market Operator to issue Warrants.

Note: There is no penalty for this Rule.

Part 1.5 Transitional

1.5.1      Repeal

The following provisions of the ASIC Market Integrity Rules (ASX Market) 2010 are repealed:

(a)Chapters 8 and 9;

(b)Schedules 1A, 1B and 1C; and

(c)the Annexures  to Schedule 1A.

Note: There is no penalty for this Rule.

Chapter 8: Capital requirements

Part 8.1 Preliminary

8.1.1      Definitions

In this Chapter and in Chapter 9: 

“Approved Clearing Facility” means ASX Clear Pty Limited (ACN 001 314 503).

“Capital Requirements” means, in relation to a Market Participant, the Risk Based Capital Requirements or the NTA Requirements as applicable.

“NTA Requirements” means the requirements set out in Schedule 1B.

“Risk Based Capital Requirements” means the requirements set out in Schedule 1A.

Note: There is no penalty for this Rule.

Part 8.2 Application

8.2.1      Market Participant to comply with Risk Based Capital Requirements

A Market Participant must at all times comply with the Risk Based Capital Requirements, unless:

(a)the Market Participant is only a Principal Trader;

(b)the Market Participant has elected to comply with the NTA Requirements under Rules  8.3.1 to 8.3.3; or

(c)the Market Participant is a Clearing Participant of an Approved Clearing Facility and complies with the capital requirements under the Clearing Rules.

Maximum penalty: $1,000,000

Note: The Risk Based Capital Requirements are contained in Schedule 1A and the NTA Requirements are contained in Schedule 1B.

Part 8.3 Participants with Trading Permission for Futures Market Transactions only

8.3.1      Market Participant may elect to comply with NTA Requirements

(1) A Market Participant with Trading Permission for Futures Market Transactions only must elect to comply with either the Risk Based Capital Requirements or the NTA Requirements. That election must be made in accordance with subrule (2) and may only be changed in accordance with Rule 8.3.2 or 8.3.3. A Market Participant must at all times comply with the Capital Requirements with which it has elected to comply. 

Note: The NTA Requirements are contained in Schedule 1B.

(2) A Market Participant to which subrule (1) applies must notify ASIC in writing of the Capital Requirements the Market Participant has elected to comply with, within 1 Business Day after the Market Participant is granted Trading Permission for Futures Market Transactions only.

Maximum penalty: $1,000,000

8.3.2      Consent to change to other requirements

A Market Participant with Trading Permission for Futures Market Transactions only and to which the NTA Requirements or the Risk Based Capital Requirements applies is not entitled to change to the other requirements without the prior written consent of ASIC. 

Maximum penalty: $100,000

8.3.3      Notification of change to Trading Permission

(1) A Trading Participant which is entitled to comply with the NTA Requirements under Rule 8.3.1 must comply with the Risk Based Capital Requirements if it is granted Trading Permission for Products other than Futures Market Transactions (unless the Trading Participant is only a Principal Trader in respect of the other Products).

(2) A Trading Participant to which subrule (1) applies must notify ASIC in writing within 1 Business Day after the Trading Participant is granted Trading Permission for Products other than Futures Market Products.

Maximum penalty: $100,000

Chapter 9: Accounts and audit

Part 9.1 Application of Rules

9.1.1      Principal Traders and Clearing Participants

This Chapter does not apply to:

(a)a Market Participant that is only approved as a Principal Trader;

(b)a Market Participant that is a Clearing Participant of an Approved Clearing Facility and complies with the capital requirements under the Clearing Rules.

Note: There is no penalty for this Rule.

Part 9.2 Risk Based Capital Requirements—Reporting

9.2.1A   Risk Based Capital Requirements: Forms

In this Part 9.2:

“Ad Hoc Risk-Based Return” means a return containing the information in, and in the form set out in, Part 1 of Form 1 in Schedule 1C to these Rules.

“Annual Audited Risk-Based Return” means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules, except for the section Credit Facilities & Overdraft (coded "CFO").

“Monthly Risk-Based Return” means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules.

“Risk-Based Return Declaration” means a declaration containing the information in, and in the form set out in, Part 2 of Form 2 in Schedule 1C to these Rules.

“Summary Risk-Based Return” means a return containing the information in, and in the form set out in, Part 1 of Form 3A in Schedule 1C to these Rules, except for the following sections:

(a)Underwriting Risk Requirement (coded “URR”);

(b)Non Standard Risk Requirement (coded “NRR”); and

(c)Credit Facilities & Overdraft (coded "CFO").

Note: There is no penalty for this Rule.

9.2.1      Risk Based Capital Requirements—Ad hoc or Summary Return on Request by ASIC

A Market Participant that is required to comply with the Risk Based Capital Requirements must, if requested to do so by ASIC, provide ASIC with:

(a)an Ad Hoc Risk-Based Return; or

(b)a Summary Risk-Based Return and Risk-Based Return Declaration,

authorised by one director or partner of the Market Participant, within the time specified by ASIC in the request.

Maximum penalty: $20,000

9.2.2      Core Capital or Liquid Capital below minimum

(1) A Market Participant that is required to comply with the Risk Based Capital Requirements must notify ASIC immediately if its:

(a)Core Capital is at any time less than the minimum amount required by paragraph S1A.2.1(b); or

(b)Liquid Capital divided by its Total Risk Requirement is equal to or falls below 1.2.

(2) A Market Participant must provide ASIC with  at the option of ASIC, an Ad Hoc Risk-Based Return, or a Summary Risk-Based Return and Risk-Based Return Declaration, disclosing the amount of its Liquid Margin:

(a)no later than one Business Day after notifying ASIC under subrule (1); and

(b)from then on, either:

(i)     by 10am on the first Business Day of each week, showing the financial position of the Market Participant on the last Business Day of the prior week, for so long as the amount referred to in paragraph (1)(b) is equal to or less than 1.2 but greater than 1.1; and

(ii)    by 10am on each Business Day, showing the financial position of the Market Participant on the prior Business Day, for so long as the amount referred to in paragraph (1)(b) is 1.1 or less.

(3) The return referred to in subrule (2) must be authorised by one director or partner of the Market Participant.

Maximum penalty: $20,000

9.2.3      Monthly Return

(1) A Market Participant that is required to comply with the Risk Based Capital Requirements must prepare and deliver to ASIC within 10 Business Days of the end of each calendar month, the following documents and information:

(a)if the Market Participant is not a partnership, a Monthly Risk-Based Return, which accurately reflects the Market Participant’s accounts and financial position on the last Business Day of the previous calendar month;

(b)if the Market Participant is not a partnership, a Risk-Based Return Declaration relating to the Monthly Risk-Based Return, authorised by one director of the Market Participant;

(c)if the Market Participant is a partnership, a Monthly Risk-Based Return, which accurately reflects the Market Participant’s accounts and financial position on the last Business Day of the previous calendar month, or such other alternative form of return as ASIC directs under this paragraph; and

(d)if the Market Participant is a partnership, a Risk-Based Return Declaration relating to the Monthly Risk-Based Return,  authorised by one partner of the Market Participant, or such other alternative form of declaration as ASIC directs under this paragraph.

Maximum penalty: $20,000

9.2.4      Audited Annual Return

(1) A Market Participant that is required to comply with the Risk Based Capital Requirements must prepare and deliver to ASIC:

(a)within 3 months following the end of the Market Participant’s financial year if the Market Participant is not a partnership; or

(b)within 2 months following the end of the Market Participant’s financial year if the Market Participant is a partnership,

the following documents and information:

(c)the Market Participant’s statutory accounts, including directors’ declaration and audit report as required under the laws of the Market Participant’s home jurisdiction, which give a true and fair view of the financial position and performance of the Market Participant’s business as at the end of the financial year and which are prepared in accordance with accounting standards and principles which are generally accepted in Australia, unless ASIC determines otherwise;

(d)if the Market Participant is not a partnership, an Annual Audited Risk-Based Return, which accurately reflects the Market Participant’s accounts and its financial position as at the end of the Market Participant’s financial year;

(e)if the Market Participant is not a partnership, a Risk-Based Return Declaration relating to the Annual Audited Risk-Based Return, authorised by two directors of the Market Participant or by one director in accordance with a resolution of the board of directors of the Market Participant;

(f)if the Market Participant is a partnership, an Annual Audited Risk-Based Return, which accurately reflects the Market Participant’s accounts and its financial position as at the end of the Market Participant’s financial year, or such other alternative form of return as ASIC directs under this paragraph;

(g)if the Market Participant is a partnership,  a Risk-Based Return Declaration relating to the Annual Audited Risk-Based Return, authorised by two partners of the Market Participant, or such other alternative form of declaration as ASIC directs under this paragraph;

(h)an auditor’s report on the Annual Audited Risk-Based Return or the alternative form of return directed by ASIC under paragraph (f), in the form set out in Form 5 in Schedule 1C to these Rules, dated and signed by the audit firm;

(i)a statement (the “Key Risks and Internal Systems Statement”) in the form set out in Form 6 in Schedule 1C to these Rules, dated and signed by two directors of the Market Participant or by one director in accordance with a resolution of the board of directors of the Market Participant (the date of the resolution must be specified), or, if the Market Participant is a partnership, by two partners of the Market Participant; and

(j)the Market Participant’s group structure chart showing the Market Participant’s corporate ownership structure starting at the ultimate parent, dropping down to the immediate parent, the Market Participant, any subsidiaries (including nominee companies of the Market Participant) and any related/associated companies of the Market Participant.

(2) If the financial year end of the Market Participant is other than 30 June, the Market Participant must notify ASIC of its financial year end.

Maximum penalty: $20,000

9.2.5      Partnership Statutory Declaration

A Market Participant that is a partnership must give ASIC, within 10 Business Days after the end of June and December each year, for each partner of the Market Participant, a declaration (the “Partnership Statutory Declaration”) in the form set out in Form 7 in Schedule 1C to these Rules, signed by the partner to which the Partnership Statutory Declaration relates and witnessed in accordance with the instructions included on the Partnership Statutory Declaration.

Maximum penalty: $20,000

Part 9.3 NTA Requirements—Reporting

9.3.1A   NTA Requirements: Forms

In this Part 9.3:

“Ad Hoc NTA Return” means a return containing the information in, and in the form set out in, Part 1 of Form 8 in Schedule 1C to these Rules;

“Annual Audited NTA Return” means a return containing the information in, and in the form set out in, Part 1 of Form 8 in Schedule 1C to these Rules, except for the following sections:

(a)Receivables Analysis – Attachment A (coded “RAS”);

(b)Directors - Attachment B (coded “DIR”);

(c)Shareholders - Attachment C (coded “SHA”);

(d)Related/Associated Company Receivables - Attachment D (coded “REL”);

(e)Statement of Net Liquid Assets – Attachment E (coded “NLA”); and

(f)Secured Creditors - Attachment F (coded “SEC”).

“Monthly NTA Return” means a return containing the information in, and in the form set out in, Part 1 of Form 8 in Schedule 1C to these Rules.

“NTA Return Declaration” means a return containing the information in, and in the form set out in, Part 2 of Form 8 in Schedule 1C to these Rules.

“Summary NTA Return” means a return containing the information in, and in the form set out in, Part 1 of Form 9 in Schedule 1C to these Rules.

9.3.1      Ad Hoc Return or Summary Return on Request by ASIC

(1) A Market Participant that is required to comply with the NTA Requirements must, if requested to do so by ASIC, provide ASIC with:

(a)an Ad Hoc NTA Return and NTA Return Declaration related to the Ad Hoc NTA Return;

(b)a Summary NTA Return and NTA Return Declaration related to the Summary NTA Return,

by the time specified by ASIC.

(2) An Ad Hoc NTA Return or Summary NTA Return lodged under subrule (1) must be authorised by one director of the Market Participant.

Maximum penalty: $20,000

9.3.2      NTA below minimum amount

A Market Participant that is required to comply with the NTA Requirements must immediately notify ASIC if its NTA falls below the minimum amount required by Rule S1B.3.1.

Maximum penalty: $20,000

9.3.3      NTA changes

A Market Participant that is required to comply with the NTA Requirements must immediately notify ASIC in each of the following circumstances:

(a)if the Market Participant’s NTA is less than 150% of the minimum amount required by Rule S1B.3.1; and

(b)having notified ASIC under paragraph (a), the Market Participant’s NTA has then decreased by more than 20% since the amount last notified to ASIC under this Rule 9.3.3.

Maximum penalty: $20,000

9.3.4      ASIC may require additional returns

(1) A Market Participant who has given a notice under Rule 9.3.2 or 9.3.3 must, unless advised otherwise by ASIC, prepare and lodge with ASIC:

(a)a Summary NTA Return and NTA Return Declaration related to the Summary NTA Return, within one Business Day of giving the notice; and

(b)at the option of ASIC:

(i)     an Ad Hoc NTA Return and NTA Return Declaration related to the Ad Hoc NTA Return; or

(ii)    a Summary NTA Return and NTA Return Declaration related to the Summary NTA Return,

from the time of giving the notice:

(iii)   by 10am on the first Business Day of each week, prepared as at the close of business the last Business Day of the previous week, for so long as the NTA is less than 150% of the minimum amount required by Rule S1B.3.1 but greater than or equal to 120% of the minimum amount required by Rule S1B.3.1; and

(iv)   by 10am on each Business Day, for so long as the NTA is less than 120% of the minimum amount required by Rule S1B.3.1.

(2) An Ad Hoc NTA Return or Summary NTA Return lodged under subrule (1) must be authorised by one director of the Market Participant.

Maximum penalty: $20,000

9.3.5      Monthly Return

A Market Participant that is required to comply with the NTA Requirements must prepare and deliver to ASIC within 10 Business Days of the end of each calendar month, the following documents and information:

(a)a Monthly NTA Return, which accurately reflects the accounts and the financial position of the Market Participant on the last Business Day of the previous calendar month; and

(b)an NTA Return Declaration  relating to the Monthly NTA Return, authorised by one director of the Market Participant.

Maximum penalty: $20,000

9.3.6      Audited Annual NTA Return

(1) A Market Participant that is required to comply with the NTA Requirements must prepare and deliver to ASIC, within 3 months following the end of the Market Participant’s financial year, the following documents and information:

(a)the Market Participant’s statutory accounts, including directors declaration and audit report as required under the laws of the Market Participant’s home jurisdiction, which give a true and fair view of the financial position and performance of the Market Participant’s business as at the end of the financial year and which are prepared in accordance with accounting standards and principles which are generally accepted in Australia, unless ASIC determines otherwise;

(b)an Annual Audited NTA Return, which accurately reflects the accounts and the financial position of the Market Participant as at the end of the Market Participant’s financial year;

(c)an NTA Return Declaration relating to the Annual Audited NTA Return, authorised by two directors of the Market Participant or by one director in accordance with a resolution of the board of directors of the Market Participant;

(d)an auditor’s report on the Annual Audited NTA Return in the form set out in Form 5 in Schedule 1C to these Rules, dated and signed by the audit firm;

(e)a statement (the “Key Risks and Internal Systems Statement”) in the form set out in Form 6 in Schedule 1C to these Rules, dated and signed by two directors of the Market Participant or by one director in accordance with a resolution of the board of directors of the Market Participant (the date of the resolution must be specified); and

(f)the Market Participant’s group structure chart, showing the Market Participant’s corporate ownership structure starting at the ultimate parent, dropping down to the immediate parent, the Market Participant, any subsidiaries (including nominee companies of the Market Participant) and any related/associated companies of the Market Participant.

(2) If the financial year end of the Market Participant is other than 30 June, the Market Participant must notify ASIC of its financial year end.

Maximum penalty: $20,000

Part 9.4 General

9.4.1      Alternate Director

Where a Market Participant has appointed an alternate director in accordance with section 201K of the Corporations Act and the constitution of the Market Participant, the alternate director may authorise or sign the Forms referred to in Parts 9.2 and 9.3 only if the Market Participant has provided ASIC with:

(a)the details of the appointment of the alternate director; and

(b)a statement that the Market Participant’s constitution permits the appointment of the alternate director.

Note: There is no penalty for this Rule.

9.4.2      Use of Return Lodgement and Monitoring System

(1) Unless otherwise directed by ASIC, a Market Participant may comply with the following provisions:

(a)Rule 9.2.1;

(b)subrule 9.2.2(2);

(c)Rule 9.2.3;

(d)paragraphs 9.2.4(1)(d) to (g);

(e)Rule 9.3.1;

(f)Rule 9.3.4;

(g)Rule 9.3.5;

(h)paragraphs 9.3.6(1)(b) and (c),

by submitting the information required to be delivered to ASIC under those provisions to the  electronic Return Lodgement and Monitoring system maintained by the Market Operator.

(2) Where a Risk-Based Return Declaration or NTA Return Declaration is submitted to the electronic return lodgement and monitoring system maintained by the Market Operator, each reference in that Risk-Based Return Declaration or NTA Return Declaration to the ASIC Market Integrity Rules (ASX Market) 2010 is taken to be a reference to these ASIC Market Integrity Rules (ASX Market-Capital) 2014.

Note. 1: Before 26 May 2014, the requirements in these ASIC Market Integrity Rules (ASX Market-Capital) 2014 were set out in the ASIC Market Integrity Rules (ASX Market) 2010.

Note 2: There is no penalty for this Rule.

Part 9.5 Scope of audits

9.5.1      Market Participant to assist auditor

(1) A Market Participant must give its auditor access to its premises and Employees and all records, documents, explanations and other information required by the auditor in respect of any audit conducted under Part 9.2 or 9.3.

(2) A Market Participant must:

(a)not impose any limitation on the extent of any audit required under Part 9.2 or 9.3; and

(b)permit and direct the auditor to notify ASIC immediately if any limitation is imposed on the auditor, or if the auditor is hindered or delayed in the performance of the auditor’s duties.

(3) The records of each of the Market Participant’s nominee companies must be included in the audit.

Maximum penalty: $100,000

Schedule 1A: Capital liquidity requirements

Part S1A.1 Definitions and Interpretation

S1A.1.1 Definitions

In this Schedule 1A and in Chapter 9, unless the context otherwise requires:

“Approved Deposit Taking Institution” means:

(a)an authorised deposit taking institution under section 5 of the Banking Act 1959 (Cth);

(b)a banking institution which has its activities formally regulated in accordance with the standards of the Basel Committee on Banking Supervision; or

(c)an institution which has been given a risk weighting by the Australian Prudential Regulation Authority equivalent to an authorised deposit taking institution referred to in paragraph (a) above.

“Approved Institution” means:

(a)any of the following institutions whose net assets are greater than $30 million at the date of its last published audited balance sheet:

(i)     a life insurance company or general insurance company; or

(ii)    an investment company, trust or other similar institution whose ordinary business is to buy and sell Financial Instruments;

(b)any body corporate or partnership whose ordinary business is to buy and sell Financial Instruments and which is regulated by a:

(i)     Recognised non-European Union Regulator specified in Table A5.3.1 in Annexure 5 to this Schedule 1A;

(ii)    Recognised European Union Regulator specified in Table A5.3.2 in Annexure 5 to this Schedule 1A; or

(c)a Fund Manager and an underlying client that has placed money with, or has securities under the control of, the Fund Manager, where:

(i)     the Market Participant has a dealing relationship with the Fund Manager but not the underlying client; and

(ii)    the Fund Manager is placing orders on behalf of the underlying client and not as principal,

provided that the Market Participant maintains adequate documentation in support of paragraphs (a), (b) or (c).

“Approved Subordinated Debt” means an amount owing by a Market Participant under a subordination arrangement which is approved by ASIC under Rule S1A.2.4.

“Approved Subordinated Loan Deed” means, in respect of a subordination arrangement, a deed which:

(a)is executed:

(i) by the lender and ASIC under seal or by such equivalent method expressly recognised under the Corporations Act;

(ii) in the case of a Market Participant which is a company, by the Market Participant under seal or by such equivalent method expressly recognised under the Corporations Act; and

(iii)   in the case of a Market Participant which is a partnership, by each of its partners;

(b)sets out details of the terms governing any subordinated debt regulated by the subordination arrangement or identifies the document which does so;

(c)contains those provisions required by ASIC including without limitation, provisions to the effect that:

(i)     alterations to the subordinated loan deed or the terms or details of any subordinated debt regulated by the subordination arrangement cannot be made unless the agreement of all parties is obtained and the variation is executed in the manner required under paragraph (a);

(ii)    ASIC must be satisfied that the Market Participant has made adequate arrangements to ensure that Schedule 1A will be complied with and will continue to be complied with upon the maturity date of any loan for a fixed term;

(iii)   ASIC must be given full particulars of any debt to be regulated by the subordination arrangement under the subordinated loan deed prior to such debt being created; and

(iv)   prior to the Bankruptcy of the Market Participant, repayment of any subordinated debt regulated by the subordination arrangement can only occur in accordance with subrules S1A.2.4(6) and (7); and

(d)contains specific acknowledgment by the lender of the matters set out in paragraphs S1A.2.4(2)(a) and (b).

“ASX Clear” means ASX Clear Pty Limited (ACN 001 314 503).

“ASX Clear Operating Rules” means the Operating Rules of ASX Clear.

“ASX Settlement” means ASX Settlement Pty Limited (ACN 008 504 532).

“ASX Settlement Operating Rules” means the Operating Rules of ASX Settlement.

“Bankruptcy” means in respect of an entity:

(a)the entity becomes an externally administered body corporate within the meaning of the Corporations Act;

(b)the entity becomes an individual who is an insolvent under administration within the meaning of the Corporations Act;

(c)if the entity is a partnership, the entity is wound up or dissolved or a liquidator is appointed to it;

(d)a person takes control of the entity’s property for the benefit of the entity’s creditors because the entity is, or is likely to become, insolvent;

(e)the entity enters into an arrangement, composition or compromise with, or assignment for the benefit of, all of its creditors or any class of them; or

(f)anything analogous to, or having a substantially similar effect to the events specified in paragraphs (a) to (e) happens to the entity under the laws of any applicable jurisdiction.

“CFD” means contract for difference.

“Classical ETF” means a managed fund that meets all of the following criteria:

(a)that is listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act);

(b)where, under an open prospectus, the units in the fund can only be subscribed for and redeemed in kind, on demand and via the exchange of a defined basket of Equity securities;

(c)that has a “passive” investment strategy designed to replicate a stock index at all times and this is evidenced by the holding of physical securities in weightings that predominantly match the stock index the fund has been issued over, and accordingly, any cash or Derivative components must be immaterial and must not be used to gear the fund;

(d)where the underlying assets are known on a daily basis; and

(e)that is subscribed for and redeemed in a “primary” market via either a Market Participant or the fund issuer, and existing units are traded in a “secondary” market provided through a stock exchange.

“Client Balance” means an individual Counterparty’s net debit or credit balance with a Market Participant arising from non margined Financial Instruments.

“Core Capital” means:

(a)in the case of a Market Participant which is a company, the sum of:

(i)     all ordinary issued shares to the extent that those shares are paid-up;

(ii)    all non cumulative Preference Shares;

(iii)   all reserves, excluding revaluation reserves other than Financial Asset Revaluation Reserves; and

(iv)    opening retained profits/losses adjusted for all current year movements; and

(b)in the case of a Market Participant which is a partnership, the sum of the partners’ current and capital accounts.

“Counterparty” means in respect of a transaction to which a Market Participant is a party, another party to that transaction whether that person is a counterparty or a client.

“Counterparty Risk Requirement” means the greater of:

(a)zero; and

(b)the absolute sum of the counterparty risk amounts calculated in accordance with Annexure 1 to this Schedule 1A less any provision raised for doubtful debts.

Note: The provision for doubtful debts must relate to a specific Counterparty receivable for which a counterparty risk amount has been calculated in accordance with Annexure 1 or to cover the possibility of a Counterparty or Client Balance becoming doubtful. A Market Participant must not deduct a provision amount from an individual counterparty risk amount.

“Debt Derivative” includes:

(a)a convertible note (except to the extent that Annexure 3 to this Schedule 1A provides for the treatment of a convertible note as an equity position);

(b)an interest rate Swap;

(c)a Forward Rate Agreement;

(d)a forward contract over a Debt Instrument;

(e)a Future over a Debt Instrument and a Future over an index or basket product based on Debt Instruments;

(f)an index or basket product based on Debt Instruments; and

(g)an Option over a Debt Instrument and an Option over any of the products referred to in paragraphs (a) to (f),

but does not include an instrument that falls within the definition of Equity Derivative or Foreign Exchange Derivative.

“Debt Equivalent” means the value of a position in a Debt Derivative that is equivalent to the value had it been a physical position in the underlying Debt Instrument calculated in accordance with Part A3.16 of Annexure 3 to this Schedule 1A.

“Debt Instrument” includes:

(a)a debt security without call or put provisions;

(b)a discount security without call or put provisions;

(c)a non-convertible preference share;

(d)a redeemable preference share with a fixed and certain date for redemption; and

(e)an interest in a managed investment scheme investing only in Debt Instruments, mortgages or cash, including an interest in a Hybrid ETF or Other Managed Fund that is issued over physical Debt Instruments only (ignoring any immaterial percentage of cash or Derivatives also included in the Hybrid ETF or Other Managed Fund and used only for hedging purposes),

but does not include an instrument that falls within the definition of Equity.

“Debt Net Position” means an amount calculated in accordance with Part A3.17 of Annexure 3 to this Schedule 1A.

“Derivative” includes:

(a)an Equity Derivative;

(b)a Debt Derivative; and

(c)a Foreign Exchange Derivative,

but does not include an instrument that falls within the definition of Equity or Debt Instrument.

“Equity” includes:

(a)a share other than a share referred to in paragraphs (c) and (d) of the definition of Debt Instrument;

(b)a depository receipt;

(c)an instalment receipt;

(d)an interest in a managed investment scheme, including an interest in a Hybrid ETF or an Other Managed Fund that is issued over:

(i)     physical Equities only;

(ii)    physical Debt Instruments and property;

(iii)   physical Equities, physical Debt Instruments and property;

(iv)   physical Equities and property; or

(v)    physical property only,

(ignoring any immaterial percentage of cash or Derivatives also included in the Hybrid ETF or Other Managed Fund and used only for hedging purposes), other than an interest referred to in paragraph (e) of the definition of Debt Instrument,

but does not include an instrument that falls within the definition of Debt Instrument.

“Equity Derivative” includes:

(a)an equity Swap;

(b)a forward contract over an Equity;

(c)a Future over an Equity and a Future over a basket or index product based on Equities;

(d)an index or basket product based on Equities (including a Classical ETF);

(e)a renounceable or non-renounceable right to subscribe for an equity;

(f)an Option over an Equity (whether issued or unissued) and an Option over any of the products referred to in paragraphs (a) to (d); and

(g)an exchange traded CFD over:

(i)     an Equity; or

(ii)    a basket or index product based on Equities,

but does not include an instrument that falls within the definition of Debt Derivative or Foreign Exchange Derivative.

“Equity Equivalent” means the value of a position calculated in accordance with Part A3.8 of Annexure 3 to this Schedule 1A.

“Equity Net Position” means an amount calculated in accordance with Part A3.9 of Annexure 3 to this Schedule 1A.

“Excluded Asset” means:

(a)a fixed asset;

(b)an intangible asset;

(c)a future income tax benefit;

(d)a non current asset;

(e)a deposit with or loan to a person other than:

(i)     a deposit or loan with an Approved Deposit Taking Institution;

(ii)    a deposit or loan to the extent the balance is secured by collateral which is Liquid, evidenced in writing and valued at the mark to market value; or

(iii)   a deposit of funds as a margin or deposit with a person licensed to trade or clear Futures or Options to the extent that those funds relate to an open position;

(f)a deposit with a third party clearing organisation;

(g)a Related/Associated Persons Balance to the extent the balance is not secured by collateral which is:

(i)     Liquid;

(ii)    under the control of the Market Participant, able to be accessed by the Market Participant without the approval of a third party and not otherwise encumbered;

(iii)   evidenced in writing by a legally binding agreement between the Market Participant and the Related/Associated Person in circumstances where the Market Participant has established that the Related/Associated Person and the persons signing the agreement have the legal capacity to enter into the agreement and provide the nominated collateral; and

(iv)   valued at the mark to market value;

(h)a debt which was reported or created more than 30 days previously, other than a debt:

(i)     from another Market Participant that is not an Related/Associated Person; or

(ii)    which is secured by collateral which is Liquid, evidenced in writing and valued at the mark to market value;

(i)a prepayment (being an expense which has been paid during one accounting period for a term which extends beyond the end of that period) which is not Liquid or which is Liquid but has been made in respect of an item of expenditure that is specifically required to be made by the Market Participant for the Market Participant to comply with the requirements of these Rules or the Market Operating Rules;

(j)an asset which is not Liquid; or

(k)an asset which is Liquid but which has a charge against it (in whole or in part) where the purpose of the charge is to raise funds for use outside the ordinary course of the Market Participant’s securities or derivatives business.

“Excluded Liability” means the maximum liability specified in a guarantee or indemnity under paragraph S1A.2.6(1)(c).

“Family Trust” means a trust in which:

(a)the person or the Immediate Family of the person is the sole or majority beneficiary; or

(a)the person has the ability to remove the trustee of the trust and replace the trustee with his or her own nominee.

“Financial Asset Revaluation Reserves” means revaluation reserves relating to available for sale financial assets as defined in accordance with accounting standards which are generally accepted in Australia or other accounting standards approved by ASIC under subrule S1A.2.7(3).

“Financial Instrument” means:

(a)an Equity;

(b)a Debt Instrument; and

(c)a Derivative.

“Foreign Exchange Derivative” includes:

(a)a forward contract over foreign currency;

(b)a Future over foreign currency;

(c)an Option over foreign currency; and

(d)an exchange traded CFD over an exchange rate or foreign currency,

but does not include an instrument that meets the definition of Equity Derivative or Debt Derivative.

“Foreign Exchange Equivalent” means the value of a position calculated in accordance with Part A3.21 of Annexure 3 to this Schedule 1A.

“Forward Rate Agreement” means an agreement in which two parties agree that:

(a)one party will make payments to the other of an amount of interest based on an agreed interest rate for a specified period from a specified date applied to an agreed principal amount;

(b)no commitment is made by either party to lend or borrow the principal amount; and

(c)the exposure is limited to the interest difference between the agreed and actual market rates at settlement.

“Free Delivery” means a trade where delivery of the Financial Instrument is made to a client or Counterparty without receiving payment or where a payment is made without receiving a Financial Instrument, regardless of whether the client or Counterparty is issuer sponsored or participant sponsored.

“Fund Manager” means any licensed responsible entity, agent of a responsible entity, trustee or manager whose ordinary business it is to buy or sell Financial Instruments and make investment decisions on behalf of an independent third party.

“Future” means a contract which is traded on an exchange, subject to a Primary Margin Requirement and which is:

(a)a contract to make an adjustment between the parties on an agreed future date as to the value on that date of an interest rate, a foreign currency, an Equity, basket or index, or some other agreed factor; or

(b)a deliverable bond futures contract or deliverable share futures contract.

“Government Debt Instrument” means any form of government financial instrument including a bond, treasury note or other short term instrument, and a Debt Derivative of any of those instruments where:

(a)it is issued by, fully guaranteed by, or fully collateralised by a Debt Instrument issued by:

(i)     the Australian Commonwealth, State (including Territories) governments; or

(ii)    a central government or central bank within the OECD;

(b)it is issued by, or fully guaranteed by, a non-OECD country central government or central bank, has a residual maturity of one year or less and is denominated in local currency and funded by liabilities in the same currency.

“Group of Connected Persons” means two or more persons or entities where:

(a)each person or entity is a Related/Associated Person of each other person or entity; or

(a)the persons who have control of the management of each entity or have been appointed as directors of each entity are substantially the same.

“Hybrid ETF” means a managed fund:

(a)that is listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act); and

(b)where, under an open prospectus, the units can only be subscribed for and redeemed in cash or in kind; and

(c)that is subscribed for and redeemed in a “primary” market and existing units are traded in a “secondary” market; or

(d)that does not satisfy all of the requirements of a Classical ETF but satisfies the three criteria referred to in paragraphs (a), (b) and (c).

“Immediate Family” in relation to a person means that person’s spouse and any non-adult children.

“In the Money” means:

(a)in relation to call Options, that the current market price of the underlying instrument is greater than the exercise price; and

(b)in relation to put Options, that the current market price of the underlying instrument is less than the exercise price.

“Large Exposure Risk Requirement” is the absolute sum of a Market Participant’s:

(a)counterparty large exposure risk amount calculated in accordance with Annexure 2 to this Schedule 1A; and

(b)issuer large exposure risk amount calculated in accordance with Annexure 2 to this Schedule 1A.

“Liquid” means realisable or otherwise convertible to cash within 30 days and in the case of a Financial Instrument, means the Financial Instrument meets the following criteria:

(a)there are genuine independent offers from third parties to the Market Participant;

(b)prices or rates exist that closely approximate the last sale price or rate in the Financial Instrument (whether exchange traded or over-the-counter);

(c)payment/settlement can be effected within the settlement conventions applicable to the Financial Instrument; and

(d)there is sufficient liquidity in the market to ensure a ready sale of the position held.

“Liquid Capital” means the sum of:

(a)Core Capital;

(b)cumulative Preference Shares;

(c)Approved Subordinated Debt; and

(d)revaluation reserves other than Financial Asset Revaluation Reserves;

less the sum of:

(e)Excluded Assets; and

(f)Excluded Liabilities.

“Liquid Margin” means the amount calculated by deducting the Total Risk Requirement amount from the amount of Liquid Capital.

“Market Spot Exchange Rate” means the closing rate of exchange for foreign currencies against Australian dollars on each Business Day, having a settlement period of 2 days.

“Non-Standard Risk Requirement” means the amount calculated in accordance with Rule S1A.2.9 to cover unusual or non-standard exposures.

“OECD” means the Organisation for Economic Co-operation and Development.

“Operational Risk Requirement” means the amount calculated in accordance with subrule S1A.2.3(1) which is required to cover exposures associated with commencing and remaining in business arising separately from exposures covered by other risk requirements.

“Option” means a contract which gives the holder the option or right, exercisable at or before a specified time to:

(a)buy (whether by way of issue or transfer) or sell a quantity of a Financial Instrument or a foreign currency; or

(b)be paid an amount of money calculated by reference to the value of a Financial Instrument, foreign currency or index as specified in the contract.

“OTC Derivative” means a Derivative which is not traded on an exchange.

“Other Managed Fund” means a managed fund:

(a)that is not listed and quoted on a stock exchange (and in Australia is registered as a managed investment scheme under the Corporations Act); or

(b)that is listed and quoted on a stock exchange but does not satisfy all of the requirements of a Classical ETF or Hybrid ETF.

“Position Risk Factors” are the percentages applied to principal positions as specified in Tables A5.1.1, A5.1.2, A5.1.3 and A5.1.7 of Annexure 5 to this Schedule 1A.

“Position Risk Requirement” is the absolute sum of the position risk amounts for a Market Participant’s:

(a)Equity and Equity Derivative positions calculated in accordance with Parts A3.1 to A3.9 of Annexure 3 to this Schedule 1A;

(b)Debt Instrument and Debt Derivative positions calculated in accordance with Parts A3.10 to A3.17 of Annexure 3 to this Schedule 1A; and

(c)foreign exchange and Foreign Exchange Derivative positions calculated in accordance with Parts A3.18 to A3.22 of Annexure 3 to this Schedule 1A.

“Positive Credit Exposure” means an exposure to a Counterparty such that if the Counterparty were to default on its obligations under:

(a)an individual transaction; or

(b)to the extent allowed by Schedule 1A, a group of transactions, contracts, arrangements or agreements,

the Market Participant may incur a financial loss.

“Preference Share” means a preference share that is redeemable solely at the request of the Market Participant.

“Primary Margin Requirement” means the amount which a Market Participant lodges or is notionally required to lodge as a deposit to cover potential daily worse case price movements in the relevant market, lodged in accordance with the rules of an exchange or clearing house against open positions registered in the name of the Market Participant on the exchange or clearing house.

“Qualifying Debt Instruments” means Debt Instruments that are:

(a)rated investment grade by at least two of the credit rating agencies recognised by the Australian Prudential Regulation Authority and specified in Table A5.1.5 in Annexure 5 to this Schedule 1A;

(b)rated investment grade by one credit rating agency recognised by the Australian Prudential Regulation Authority and specified in Table A5.1.5 in Annexure 5 to this Schedule 1A, and the issuer has its ordinary shares included in a Recognised Market Index;

(c)unrated but the Issuer of the Debt Instrument has its ordinary shares included in a Recognised Market Index and the Debt Instruments are reasonably deemed by the Market Participant to be of comparable investment quality to one or more of the categories of Qualifying Debt Instrument as described in this definition;

(d)issued by, or guaranteed by, Australian local governments and Australian public sector entities other than those which have corporate status or operate on a commercial basis;

(e)issued by, or fully guaranteed by, a non-OECD country’s central government and central bank and which have a residual maturity of over one year and are denominated in local currency and funded by liabilities in the same currency;

(f)issued by or collaterised by claims on, an international agency or regional development bank including the International Monetary Fund, the International Bank for Reconstruction and Development, the Bank for International Settlements and the Asian Development Bank;

(g)issued, guaranteed, first endorsed or accepted by an Australian ADI or a bank incorporated within the OECD or a non-OECD bank accorded the same credit risk weight as an OECD bank by the Australian Prudential Regulation Authority provided that such instruments do not qualify as capital of the issuing institution;

(h)issued, guaranteed, endorsed or accepted by a non-OECD bank and which have a residual maturity of one year or less provided that such instruments do not qualify as capital of the issuing institution; or

(i)issued by or guaranteed by OECD country, State and regional governments and OECD public sector entities.

“Recognised Market Index” means an index specified in Table A5.1.6 in Annexure 5 to this Schedule 1A.

“Related/Associated Person” means:

(a)a partner, director, employee, officer or consultant of a Market Participant or of a company which is a partner of a Market Participant;

(b)a person who is a member of the Immediate Family of a person referred to in paragraph (a);

(c)the trustee of a Family Trust of a person referred to in paragraph (a);

(d)an entity which is:

(i)     controlled by a person referred to in paragraphs (a), (b) or (c) or any of those persons acting together; or

(ii)    a corporation in which a person referred to in paragraphs (a) or (b) is beneficially entitled to more than 50% of the issued capital;

(e)an entity which is the holding company, or which is controlled by the holding company, of a Market Participant or of a company which is a partner of a Market Participant;

(f)a person who is a Substantial holder of a Market Participant or of a company which is a partner of a Market Participant;

(g)an associate of a Market Participant (as defined in each section of Part 1.2, Division 2 of the Corporations Act) or of a company which is a partner of a Market Participant; and

(h)a lender who is a party to an Approved Subordinated Loan Deed or a related entity or associate of that lender.

“Related/Associated Person Balance” is an amount owing to the Market Participant by a person who is a Related/Associated Person of the Market Participant and excludes an amount owing as a result of:

(a)the deposit with, loans to or other amounts owing from an Approved Deposit Taking Institution;

(b)the deposit of funds as a margin or deposit with a person licensed to trade or clear Futures or Options to the extent that those funds relate to an open position; or

(c)a transaction in a Financial Instrument under Annexure 1 to this Schedule 1A which is made on terms no more favourable to the Related/Associated Person than those on which it would be reasonable to expect the Market Participant to make if it had entered into the transaction on an arm’s length basis, but not including sundry fees, interest or similar amounts owing on such transactions; or

(d)brokerage or similar amounts owing that were reported or created less than 30 days previously and which arose as a result of a third party clearing arrangement entered in to with a Clearing Participant that is a Related/Associated Person of the Market Participant.

“Securities Lending and Borrowing” means any transaction undertaken by a Market Participant under an Equity or Debt Instrument lending or borrowing agreement, a repurchase or reverse repurchase agreement or an agreement for the sale and buyback of Equity or Debt Instruments.

“Substantial holder” means a person who has or would have a substantial holding if Part 6C of the Corporations Act applied to that corporation.

“Swap” means a transaction in which two counterparties agree to exchange streams of payments over time on a predetermined basis.

“Total Risk Requirement” means the sum of:

(a)Operational Risk Requirement;

(b)Counterparty Risk Requirement;

(c)Large Exposure Risk Requirement;

(d)Position Risk Requirement;

(e)Underwriting Risk Requirement; and

(f)Non-Standard Risk Requirement,

however where an asset or liability is an Excluded Asset or Excluded Liability a risk requirement otherwise applicable under paragraphs (a) to (e) is not included.

“Trading Day” means a day on which a relevant exchange traded or over the counter market has been open for trading.

“Underwriting” means a commitment to take up Equity or Debt Instruments where others do not acquire or retain them under an underwriting agreement, sub underwriting agreement, or other similar agreement calculated using:

(a)the price stated in the Underwriting agreement; or

(b)in the case of new float where the price is not known, the indicative price, until the price is known.

“Underwriting Risk Requirement” is the absolute sum of the risk amounts calculated in accordance with Annexure 4 to this Schedule 1A.

Note: There is no penalty for this Rule.

S1A.1.2 Interpretation

(1) Schedule 1A must be interpreted and applied consistently across positions in the same Financial Instruments throughout a period covered by a return required under Part 9.2.

(2) References to dollar amounts are references to Australian dollar amounts.

(3) The Annexures to Schedule 1A form part of Schedule 1A and a reference to Schedule 1A in these Rules includes a reference to those Annexures.

Note: There is no penalty for this Rule.

Part S1A.2 Obligations of Market Participants

S1A.2.1 Core Capital, Liquid Capital and Total Risk Requirement

A Market Participant must ensure that its:

(a)Liquid Capital is at all times greater than its Total Risk Requirement; and

(b)Core Capital is at all times not less than $100,000,

provided that in satisfying the requirement in paragraph (b), a Market Participant may satisfy the requirement in accordance with, and subject to, subrule S1A.2.4(8).

Maximum penalty: $1,000,000

S1A.2.3 Risk Requirements and Risk Amounts

(1) A Market Participant must calculate:

(a)its Operational Risk Requirement; and

(b)an operational risk amount, as the sum of:

(i)     the amount of $100,000; and

(ii)    8% of the sum of the Market Participant’s:

(A)Counterparty Risk Requirement;

(B)Position Risk Requirement; and

(C)Underwriting Risk Requirement.

(2) A Market Participant must calculate in accordance with Annexure 1 to this Schedule 1A:

(a)its Counterparty Risk Requirement; and

(b)a counterparty risk amount for each of its Positive Credit Exposures to a Counterparty for transactions in Financial Instruments referred in Annexure 1 to this Schedule 1A, except those transactions which relate to Excluded Assets.

(3) A Market Participant must calculate in accordance with Annexure 2 to this Schedule 1A:

(a)its Large Exposure Risk Requirement; and

(b)its large exposure risk amount for each:

(i)     Counterparty; and

(ii)    Equity Net Position and Debt Net Position relative to:

(A)Liquid Capital; and

(B)an issue or issuer.

(4) A Market Participant must calculate in accordance with Annexure 3 to this Schedule 1A:

(a)its Position Risk Requirement;

(b)a position risk amount for all positions in Financial Instruments, except those positions which are Excluded Assets; and

(c)a position risk amount for other assets and liabilities which are denominated in a currency other than Australian dollars except for those assets which are Excluded Assets.

(5) A Market Participant must calculate in accordance with Annexure 4 to this Schedule 1A:

(a)its Underwriting Risk Requirement; and

(b)an underwriting risk amount for each Underwriting.

(6) A Market Participant must calculate a Non-Standard Risk Requirement in accordance with Rule S1A.2.9.

Maximum penalty: $100,000

S1A.2.3A Authorisation

(1) A Market Participant must be authorised by ASIC in writing for each of the risk calculation methods it uses for the purposes of Rule S1A.2.3.

(2) An authorisation given by ASIC under subrule (1) will specify which risk calculation methods the Market Participant is authorised to use.

(3) A Market Participant must obtain an authorisation from ASIC under subrule (1) prior to the use of a particular risk calculation method.

(4) A Market Participant will only be authorised to use a particular risk calculation method under subrule (1) after having satisfactorily demonstrated its ability to calculate risk amounts under that method.

Maximum penalty: $100,000

S1A.2.4 Approved Subordinated Debt

(1) A Market Participant entering into a subordination arrangement may only include an amount owing under such an arrangement in its Liquid Capital if:

(a)the subordination arrangement has the prior approval of ASIC under subrules (2) and (3); and

(b)the amount is notified to and approved by ASIC prior to being drawn down under the subordination arrangement and complies with subrule (4) where relevant.

(2) ASIC will not approve a subordination arrangement unless in the opinion of ASIC:

(a)subject to subrule (6), the amount owing to the lender under the subordination arrangement will not be repaid until all other debts which the Market Participant owes to any other persons are repaid in full; and

(b)the obligation to pay any amount owing under the subordination arrangement is suspended if Rule S1A.2.1 is no longer complied with.

(3) ASIC will not approve a subordination arrangement unless the Market Participant has executed an Approved Subordinated Loan Deed in respect of the subordination arrangement.

(4) If a Market Participant is a partnership which has entered into an approved subordination arrangement under subrules (2) and (3) and there is a change in the composition of the Market Participant, then an amount owing under the previously approved subordination arrangement must not be included in its Liquid Capital unless ASIC is of the opinion that this arrangement has been renewed or amended so as to ensure that all partners after the change in composition are bound by it.

(5) A Market Participant must comply with the terms of the Approved Subordinated Loan Deed and any associated agreement to which it, ASIC, and the lender are parties and must ensure the lender’s compliance with these documents.

(6) Prior to its Bankruptcy, a Market Participant may repay an amount owing under an approved subordination arrangement only with the prior approval of ASIC.

(7) ASIC will not withhold its approval under subrule (6) if in the opinion of ASIC:

(a)the Market Participant’s Liquid Capital divided by its Total Risk Requirement is capable of continuing to be greater than 1.2 on repayment; and

(b)the Market Participant’s Core Capital is capable of continuing to be equal to or greater than the amount required under Rule S1A.2.1 when Approved Subordinated Debt is included under subrule (8).

(8) If a Market Participant does not hold sufficient Core Capital under paragraph S1A.2.1(b), then it may with the prior approval of ASIC include amounts owing under an approved subordination arrangement in calculating Core Capital for a 6 month period commencing on the date that the Market Participant first does not hold sufficient Core Capital.

(9) In forming an opinion as to whether a Market Participant is capable of continuing to meet the requirements in paragraphs (7)(a) and (b), ASIC may consider matters such as:

(a)the state of the overall market and the trend of the individual Market Participant’s share of that market;

(b)the ability of the Market Participant to continue as a going concern for a period that may exceed 30 days;

(c)any waivers that exist at the time of the request; and

(d)the existence of any outstanding litigation.

Maximum penalty: $100,000

S1A.2.4A Excluded Assets

(1) Subject to subrule (2), where a Market Participant has an asset due from one entity (which would ordinarily be treated as an Excluded Asset) which is linked to an offsetting liability payable to another entity, the Market Participant may net the asset and liability so that only the net amount (if positive) is reported as an Excluded Asset.

The declaration is required to be made in accordance with the law of the place where the declaration is executed.    The table below sets out the persons who may witness a declaration.

State	Persons who may witness declaration
Victoria	Among others, any justice of the peace, notary public, barrister or solicitor of the Supreme Court, a member of the police force or Parliament, a legally qualified medical practitioner, a bank manager, a dentist or pharmacist, or a public service officer authorised to do so.
New South Wales	Among others, any justice of the peace, notary public, commissioner of the court for taking affidavits, other person authorised by law to administer an oath, or a solicitor holding a current practising certificate.
Queensland	Among others, any commissioner for declarations, justice of the peace, notary public or other officer authorised by law to administer an oath, barrister, solicitor or conveyancer.
Western Australia	Among others, any justice of the peace or other person authorised by law to administer an oath.
South Australia	Among others, any justice, notary public or any officer authorised by law to administer an oath or affirmation.
Tasmania	Among others, any justice, person authorised by law to administer an oath or a commissioner for declarations.

Each page of the notes attached to the statutory declaration must be signed and dated by the partner for identification purposes.

Treatment of property and mortgages

It is intended that the following guidelines be observed in the treatment of property and mortgages:

·   only the partner's proportion of the property value may be included as an asset in note 5;

·   the partner's proportion of the mortgage debt to be shown as a liability in note 8;

·   the proportion of the mortgage debt relating to other owners to be shown as contingent liability in note 9; and

·   no proportion of the property owned by the other parties may be included as an asset, contingent or otherwise.

Summary (note 1)

As note 1 is a summary of the totals of other notes, this note must be completed in full.

Treatment of assets (notes 2 to 7)

Accounts as at 30 June last should be attached to this Statutory Declaration in respect of any borrower who is not a recognised borrowing institution.

Assets are to be separately listed in these notes.  Where such assets are not registered in the sole name of the partner, particulars must be given.  Where assets included in these notes have been offered as security, full particulars must be given.

Treatment of assets pledged for liability of a Participant (note 10)

If any personal assets are pledged as security for a liability of a Participant, those assets should be listed in note 10.  They must not be listed in any other notes.

Treatment of assets pledged for other debts not included in note 10 (note 11)

If any of the assets listed are pledged as security for any debt of either the person making this declaration, or a third party, details should be listed in note 11.

Statutory Declaration*

I,	[insert full name]
of	[insert address]
,	[insert occupation]
do solemnly and sincerely declare that:

1. My actual and contingent liabilities of any nature did not exceed the sum of $ and are detailed on notes 8 and 9;

1. The information stated in notes 1 to 11 inclusive is true and correct;

1. The realisable value of my assets (excluding my interest in the Participant of  ) exceeded the liabilities referred to in clause 1 by at least $    ; and

1. All insurable assets described in the notes are, at all times, held insured to a value not less than that shown in the attached notes.

Victoria* - Declaration complying with the Evidence Act 1958
And I acknowledge that this declaration is true and correct, and I make it in the belief that a person making a false declaration is liable to the penalties for perjury.
Declared at	)
)
this	day of		20		)
[Signature of declarant]
Before me:
[Signature of person before whom the declaration is made]
[Title of person before whom the declaration is made]

_______________________

* Each partner is required to execute the statutory declaration in accordance with the law of the jurisdiction where the declaration is made.  Accordingly, please select the appropriate format and delete or cross out those formats which are not relevant.

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

New South Wales*   - Declaration under the Oaths Act 1990
And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act 1990.
Declared at	)
)
this	day of		20		)
[Signature of declarant]
Before me:
[Signature of person before whom the declaration is made]
[Title of person before whom the declaration is made]
Queensland*    - Declaration under The Oaths Acts, 1867 to 1988 -
And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of The Oaths Act of 1867.
Signed and declared by the above-named declarant
at	in the State of				)
)
this	day of		20		)
[Signature of declarant]
Before me:
[Signature of person before whom the declaration is made]
A Justice of the Peace [or as the case may be].

_______________________

* Each partner is required to execute the statutory declaration in accordance with the law of the jurisdiction where the declaration is made.  Accordingly, please select the appropriate format and delete or cross out those formats which are not relevant.

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Western Australia* - Declaration under the Evidence Act 1906
And I make this solemn declaration by virtue of section 106 of the Evidence Act 1906.
Declared at	)
)
this	day of		20		)
[Signature of declarant]
Before me:
[Signature of person before whom the declaration is made]
[Title of person before whom the declaration is made]
South Australia* - Declaration under the Oaths Act 1936
And I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Oaths Act 1936.
Declared at	)
)
this	day of		20		)
[Signature of declarant]
Before me:
[Signature of person before whom the declaration is made]
[Title of person before whom the declaration is made]

_______________________

* Each partner is required to execute the statutory declaration in accordance with the law of the jurisdiction where the declaration is made.  Accordingly, please select the appropriate format and delete or cross out those formats which are not relevant.

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Tasmania* - Declaration under the Evidence Act 1910
And I make this solemn declaration by virtue of section 132 of the Evidence Act 1910.
Declared at	)
)
this	day of		20		)
[Signature of declarant]
Before me:
[Signature of person before whom the declaration is made]
[Title of person before whom the declaration is made]

_______________________

* Each Partner is required to execute the statutory declaration in accordance with the law of the jurisdiction where the declaration is made.  Accordingly, please select the appropriate format and delete or cross out those formats which are not relevant.

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 1   Summary as at ___/___/20___

Note	Due not later than 1 year	Due later than 1 year but not later than 3 years	Due later than 3 years
Assets
Cash in Bank	2
Marketable Securities	3
Other Debtors	4
Property	5
Investments	6
Other Assets	7
Total Assets
Liabilities
Actual Liabilities	8
Contingent Liabilities	9
Total Liabilities
Net Assets (Total Assets less Total Liabilities)

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 2       Cash in bank or on deposit

ASSETS AS AT ___/___/20___

Financial institution	Nature of account	Amount ($)
Total cash in bank or on deposit

Note 3       Marketable/liquid securities

Company	Number of securities	Type of security	Market value at ___/___/20___	Total Value
Total market value of liquid securities

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 4       Other debtors

Borrower	Interest rate	Term of deposit	Secured/unsecured (if secured, provide details)	Amount ($)
Total other debtors

Note 5  Property  

Address & description	Unimproved capital value as set by valuing authority	Method of valuation	Estimated realisable value	Proportion owned (%)	Value
Total property value

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 6  Investments  

Name of business owned	Total net assets	Proportion owned (%)	Value
Total investment value

Note 7  Other assets

Description of Assets	Method of valuation	Estimated realisable value	Proportion owned (%)	Value
Total other assets

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 8   Existing liabilities

Due within 1 year	Due between 1 year and 3 years	Due after 3 years	Total
Description
Outstanding tax assessments
Excess of estimated tax payable over provisional tax paid*
Estimate of tax applicable to income for financial year to date
Bank Overdrafts
Property Mortgages (show address and partner’s share of mortgage)
Other Loans
*Other Liabilities (details required)
Total existing liabilities

*  Calculate excess of estimated tax payable over provisional tax paid as per below:

Estimated tax payable for the year to 30th June	$ x
less Provisional tax paid	$ y
Amount to be declared	$

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 9   Contingent liabilities*

Due within 1 year	Due between 1 year and 3 years	Due after 3 years	Total
Description
Debt on residence (show address)
Debt on all jointly owned properties (show address)
Debt on other properties
Other contingent liabilities
Total contingent liabilities

*  Show that part of contingent liabilities which relates to debt of parties other than the partner.

Note 10  Assets pledged for liability of a Participant

Description of assets	Pledged to	Maximum liability	Value of assets pledged
Total assets pledged			$

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Note 11  Assets pledged for other debts not included in note 10

Description of assets	Pledged to	Maximum liability	Value of assets pledged
Total assets pledged			$

This page forms part of Statutory Declaration dated:	___/___/20___
Signed by partner:

Sch 1C Form 8 Pt 1    NTA Return (Ad Hoc, Monthly and Annual)

Return Date:

Return Details

Participant Type:

Participant Sub-Type:

Return Status:

Version:

Lodgement Date:

Original Lodgement Date:

NTA Return

   Return Date:

NTA Return Details

Statement of Net Tangible Assets

Note	Current Period	Prior Period	Movement $	Movement %
Current Assets	1
less Current Liabilities	2
Net Current Assets (working capital)
Non Current Assets	3
less Non Current Liabilities	4
Net Assets
Shareholder's Equity funded by:
Equity	5
Reserves & Retained earnings	6
Approved Subordinated Debt	7
Total Shareholder's Equity
less Excluded/Intangible Assets	3f
Net Tangible Assets
Contingent Liabilities	8
Lease Commitments	9
Capital Commitments	10
Net Standby Credit Facilities	11
Foreign Exchange Exposure	12

NTA Return

   Return Date:

Current Assets

Current Assets - Note 1

Current Period	Prior Period	Movement $	Movement %
Total Current Assets

NTA Return

   Return Date:

Receivables

Current Assets: Receivables- Note 1(a)

Current Period			Prior Period			Movement $	Movement %
Futures Clients
less provision for doubtful debts	=	=
Other Clients
less provision for doubtful debts	=	=
Dealers
less provision for doubtful debts	=	=
Other Receivables
less provision for doubtful debts	=	=
Sub Total

NTA Return

   Return Date:

Cash

Current Assets: Cash - Note 1(b)

Current Period	Prior Period	Movement $	Movement %
Cash at Bank (general accounts)
Clients' Segregated Account at Bank
Trust Account at Bank
Cash on Hand
Sub Total

NTA Return

   Return Date:

Deposits

Current Assets: Deposits - Note 1(c)
Current Period	Prior Period	Movement $	Movement %
Deposits with ASX Clear - Client Account
Deposits with ASX Clear - House Account
Deposits with ASX Clear (Futures) - Client Account
Deposits with ASX Clear (Futures) - House Account
Deposits with ASX Clear Participant
Deposits with ASX Clear (Futures) Participant(s) - Client
Deposits with ASX Clear (Futures) Participant(s) - House
Deposits with ASX Participant
Deposits with ASX 24 Participant(s) - Client
Deposits with ASX 24 Participant(s) - House
Deposits with Overseas Brokers - Client
Deposits with Overseas Brokers - House
Client funds invested in accordance with legislation
Deposits with a stock exchange
Other (provide details)
Sub Total

NTA Return

   Return Date:

Company Related

Current Assets: Related/Associated Company Receivables - Note 1(d)

Current Period	Prior Period	Movement $	Movement %
Deposits (provide names of related parties)
Loans (maturing within 12 months) (provide names of related parties)
Receivables (provide names of related parties)
Other (provide details)
Sub Total

NTA Return

   Return Date:

Other Current Assets

Current Assets: Other - Note 1(e)

Current Period	Prior Period	Movement $	Movement %
Listed Securities (at stated value)
At market value
At cost value
At other value (provide details)
Investment in subsidiaries
Investment in associated Companies
Bills of Exchange
Government & semi-Government Securities
Prepayments
Loans to Directors
Other (provide details)
Sub Total

NTA Return

   Return Date:

Current Liabilities

Current Liabilities: Total - Note 2

Current Period	Prior Period	Movement $	Movement %
Total Current Liabilities

NTA Return

   Return Date:

Section Name

Current Liabilities: Trade & other Payables - Note 2(a)

Current Period	Prior Period	Movement $	Movement %
Futures Clients - External
Futures Clients - Related/Associated
Other Clients
Dealers
Lease Liability
Sundry Payables
Other (provide details)
Sub Total

NTA Return

   Return Date:

Short Term Borrowings

Current Liabilities: Short Term Borrowings - Note 2(b)

Current Period	Prior Period	Movement $	Movement %
Bank Overdraft (provide lender names)
Bank Loans (provide lender names)
At call (provide lender names)
Other (provide details)
Sub Total

NTA Return

   Return Date:

Related / Associated Company Payables

Current Liabilities: Related/Associated Company Payables - Note 2(c)

Current Period	Prior Period	Movement $	Movement %
Loans (due within 12 months) (provide names of related parties)
Payables (provide names of related parties)
Other (provide details)
Sub Total

NTA Return

   Return Date:

Other Current Liabilities

Current Liabilities: Other - Note 2(d)

Current Period	Prior Period	Movement $	Movement %
Provision for Income Tax
Provision for Dividend
Provision for Annual Leave
Provision for long Service Leave
Sundry Provisions
Sundry Accruals
Other (provide details)
Sub Total

NTA Return

   Return Date:

Non Current Assets

Non-Current Assets: Total - Note 3

Current Period	Prior Period	Movement $	Movement %
Total Non-Current Assets

NTA Return

   Return Date:

Property, Plant & Equipment

Non-Current Assets: Property, Plant & Equipment - Note 3(a)

Current Period			Prior Period			Movement $	Movement %
Land & Buildings - at fair value / cost
less accumulated depreciation	=	=
Leasehold Improvement - at fair value / cost
less accumulated depreciation	=	=
Plant, vehicles, fixtures & fittings
less accumulated depreciation	=	=
Other (provide details)
Sub Total

NTA Return

   Return Date:

Financial Assets

Non-Current Assets: Financial Assets - Note 3(b)

Current Period	Prior Period	Movement $	Movement %
Government & semi-Government Securities
Listed Securities (at stated value)
At market value
At cost value
At other value (provide details)
Investment in subsidiaries
Investment in associated Companies
Other (provide details)
Sub Total

NTA Return

   Return Date:

Loans & Deposits

Non-Current Assets: Loans & Deposits - Note 3(c)

Current Period	Prior Period	Movement $	Movement %
Due between 1-2 years (provide names of parties loan/deposit held with)
Due after 2 years (provide names of parties loan/deposit held with)
Sub Total

NTA Return

   Return Date:

Related / Associated company Receivables

Non-Current Assets: Related/Associated Company Receivables - Note 3(d)

Current Period	Prior Period	Movement $	Movement %
Deposits (provide names of related parties)
Loans (provide names of related parties)
Receivables (provide names of related parties)
Other (provide details)
Sub Total

NTA Return

   Return Date:

Other Non Current Assets

Non-Current Assets: Other - Note 3(e)

Current Period	Prior Period	Movement $	Movement %
Prepayments
Loans to Directors
Other (provide details)
Sub Total

NTA Return

   Return Date:

Excluded / Intangible Assets

Non-Current Assets: Excluded/Intangible Assets - Note 3(f)

Current Period	Prior Period	Movement $	Movement %
Formation Costs
Goodwill
Patents, Trademarks & Preliminary Expenses
Deferred Tax Assets
Participant Rights / Access Membership to:
ASX 24
ASX
ASX Clear (Futures)
ASX Clear
Other Exchanges / Clearing Houses (provide details)
Unlisted Securities (provide details)
ASX Clear Participant commitment
ASX Clear (Futures) Participant commitment (cash only)

Other commitments (provide details)

Sub Total

NTA Return

   Return Date:

Non Current Liabilities

Non-Current Liabilities - Note 4

Current Period	Prior Period	Movement $	Movement %
Total Non-Current Liabilities

NTA Return

   Return Date:

Long Term Borrowings

Non-Current Liabilities: Long Term Borrowings - Note 4(a)

Current Period	Prior Period	Movement $	Movement %
Bank Loans (provide names of lenders)
Other Loans (provide names of lenders)
Subordinated Loans (provide names of lenders)
Sub Total

NTA Return

   Return Date:

Related/Associated Company Payables

Non-Current Liabilities: Related/Associated Company Payables - Note 4(b)

Current Period	Prior Period	Movement $	Movement %
Loans (provide names of related parties)
Payables (provide names of related parties)
Other (provide details)
Sub Total

NTA Return

   Return Date:

Other Non Current Liabilities

Non-Current Liabilities: Other - Note 4(c)

Current Period	Prior Period	Movement $	Movement %
Provision for Income Tax
Provision for Long Service Leave
Provision for Dividend
Deferred Taxation Liability
Lease Liability
Other Payables
Other Accruals & Sundry Provisions
Other (provide details)
Sub Total

NTA Return

   Return Date:

Equity

Equity - Note 5

Current Period	Prior Period	Movement $	Movement %
Voting Shares
Non-Voting Shares
Other (provide details)
TOTAL

NTA Return

   Return Date:

Reserves & Retained Earnings

Reserves & Retained Earnings - Note 6

Current Period	Prior Period	Movement $	Movement %
Accumulated Profits / (Losses) at beginning of month
Profit / (Loss) from Futures Operations for the month
Profit / (Loss) from Rest of Operations for the month
Accumulated Profits / (Losses) at end of month
Adjustment to Retained Earnings - Increases (provide details)
Adjustment to Retained Earnings - Decreases (provide details)
Other Revenue Reserves
Capital Reserves
Dividend
Other (provide details)
Total

NTA Return

   Return Date:

Approved Subordinated Debt

Approved Subordinated Debt - Note 7

Lender	Maturity	Facility Limit	Current Period	Prior Period	Movement $	Movement %
Total

NTA Return

   Return Date:

Contingent Liabilities

Contingent Liabilities - Note 8

Current Period	Prior Period	Movement $	Movement %
Guarantees (provide details)
Other (provide details)
TOTAL

NTA Return

   Return Date:

Lease Commitments

Lease Commitments - Note 9

Current Period	Prior Period	Movement $	Movement %
Operating Leases (provide details)
TOTAL

NTA Return

   Return Date:

CEC – Capital Expenditure Commitments

Capital Expenditure Commitments - Note 10

Current Period	Prior Period	Movement $	Movement %
TOTAL

NTA Return

   Return Date:

Standby Credit Facilities

Standby Credit Facilities - Note 11

Limit Amount
Type	Provider/Participant Name	Terms & Availability	Current Period	Prior Period
Granted in favour of the Participant:
Sub Total
Granted by the Participant in favour of other:
Sub Total
Total

NTA Return

   Return Date:

Foreign Exchange Exposure

Foreign Exchange Exposure - Note 12

Current Period	Prior Period	Movement $	Movement %
Net Gain/Loss

NTA Return

   Return Date:

Receivables Analysis

Receivables Analysis - Attachment A

Amounts Owed by	Current	30 Days	60 Days	90 Days+	Total Outstanding
Future Clients
Other Clients
Dealers
Other Receivables
Less Provision for Doubtful Debt
Sub Total
Ageing Analysis %

NTA Return

   Return Date:

Directors

Directors - Attachment B

Current Period	Prior Period
Board Directors (Full Name)
Company Secretary (Full Name)
CEO (Full Name)

NTA Return

   Return Date:

Shareholders

Shareholders - Attachment C

Voting
Class of Shares	Value per Share	Shareholder Name	Number of Shares	Current Period	Prior Period
Voting Total
Non-Voting
Class of Shares	Value per Share	Shareholder Name	Number of Shares	Current Period	Prior Period
Non-Voting Total
Total Contributed Equity

NTA Return

   Return Date:

Related/Associated Company Receivables

Related/Associated Company Receivables - Attachment D

Current Assets
Name of Related/Associated Company	Evidence Provided	Current Period	Prior Period
Sub Total
Non - Current Assets
Sub Total
Total

NTA Return

   Return Date:

Net Liquid Assets

Statement of Net Liquid Assets - Attachment E

Note	Current Period	Prior Period	Movement $	Movement %
Liquid Assets
Cash at Bank and on Hand
Deposits with ASX Clear (Futures)
Deposits with ASX Clear
Deposits with other Participants
Investments with authorised Institutions (24 hour call or better)
Other Investments (24 hour call or better)
Deposits with a Stock Exchange
Government & Semi- Government Securities
Bank Accepted Bills
Listed Securities
Other (provide details)
Total Liquid Assets
Liquid Liability
Other Clients
Other Creditors - at call
Client Credit Margins (if mark to market not used)
Loans & Deposits - at call

NTA Return

   Return Date:

Bank Overdraft

Other (provide details)

Total Liquid Liabilities

Current Net Liquid Assets

NTA Return

   Return Date:

Secured Creditors

Statement of Secured Creditors - Attachment F

Note	Nature & Extent of Security	Terms	Granted in favour of	Current Period	Prior Period
Current Liabilities
Bank Overdraft
Bank Loans
Loans & Deposits
Related/Associate d Company Payables
Other (provide details)
Total Current Liabilities
Non-Current Liabilities
Bank Overdraft
Bank Loans
Loans & Deposits
Related/Associate d Company Payables
Other (provide details)
Total Non-Current Liabilities
Total Secured Creditors

Schedule 1C Form 8 Part 2: NTA Return Declaration

Return Date: Director's Declaration

DIRECTORS STATEMENT RELATING TO THE ACCOUNTS OF A PARTICIPANT

Participant : …………………

(a)  This return is for the …………………

(b) The Participant is incorporated in ………………… (the Place of Incorporation).

(c)  The assets and liabilities of each company controlled by the Participant, or any other venture in which the Participant has a financial interest <are/are not> in our opinion such as to affect adversely to a material extent the Participant's financial position.

(d) In my/our opinion, the Participant's systems, controls and accounting records have been properly and accurately maintained and form an appropriate basis upon which to assess and regularly review the financial stability of the Participant.

(e)  No events have occurred or are anticipated up to the date of this statement which in my/our opinion may result in a significant deterioration in the financial stability of the Participant and there are reasonable grounds to believe the Participant will be able to meet its obligations as and when they fall due.

(f)  The return associated with this statement as identified in (a) above is a true extract from our financial statement / and the attached Auditor’s Report is a true copy of the Auditor’s Report thereon*.

(g) I/we certify that the Balance Sheet has, to the best of my/our knowledge and belief, been drawn to comply with:

(i) the requirements of sections 988A and 988B of the Corporations Act 2001 or equivalent legislation in the Place of Incorporation (as applicable); and

(ii) the accounting standards generally accepted in …………………; and

(iii) the ASX Clear Operating Rules or ASIC Market Integrity Rules (ASX Market) 2010** (each, the Rules) (as applicable).

(h) I/we certify that the net tangible assets calculation has to the best of my/our knowledge and belief, been drawn to comply with the requirements of the Rules.

(i)  Since the date of the last reporting statement the Participant <has/has not> been in compliance with the minimum net tangible assets requirements for ASX Market Participants or ASX Clear Direct or General Participants (as applicable).***/ For the period covering the Annual Audited NTA Return the Participant <has/has not> been in compliance with the minimum net tangible assets requirements for ASX Market Participants or ASX Clear Direct or General Participants (as applicable).****

(j)  I/we are aware that a false declaration may result in disciplinary action being taken against the Participant and should the return be submitted after the due date, the Participant may be liable to a fee or penalty.

I/We certify that the above information is to the best of my/our knowledge and belief true and correct.

Notes:

*This additional statement ("and the attached Auditor’s Report is a true copy of the Auditor’s Report thereon") to be included in the NTA Return Declarations related to the Annual Audited NTA Return.

**Where an NTA Return Declaration is submitted to the electronic return lodgement and monitoring system maintained by the Market Operator, each reference in that NTA Return Declaration to the ASIC Market Integrity Rules (ASX Market) 2010 is taken to be a reference to the ASIC Market Integrity Rules (ASX Market-Capital) 2014 (see Rule 9.4.2(2)).

*** This statement to be included in NTA Return Declarations related to the Ad Hoc NTA Return, Monthly NTA Return and Summary NTA Return.

**** This statement to be included in the NTA Return Declarations related to the Annual Audited NTA Return.

Return Date:

Financial Return Authorisation

SoleDirectorCompany:

Board Resolution Date

Authorisation 1

Authorisation Date1

Authorisation 2

Authorisation Date2

Sch 1C Form 9 Pt 1    Summary NTA Return

Return Date:

Return Details

Participant Type:

Participant Sub-Type:

Return Status:

Version:

Lodgement Date:

Original Lodgement Date:

Summary NTA Return

Return Date:

NTA Return Details

Statement of Net Tangible Assets

Note	Current Period	Prior Period	Movement $	Movement %
Current Assets	1
less Current Liabilities	2
Net Current Assets (working capital)
Non Current Assets	3
less Non Current Liabilities	4
Net Assets
Shareholder's Equity funded by:
Equity	5
Reserves & Retained earnings	6
Approved Subordinated Debt	7
Total Shareholder's Equity
less Excluded/Intangible Assets	3f
Net Tangible Assets
Contingent Liabilities	8
Lease Commitments	9
Capital Commitments	10
Net Standby Credit Facilities	11
Foreign Exchange Exposure	12

Summary NTA Return

Return Date:

Non Current Assets

Non-Current Assets: Total - Note 3

Current Period	Prior Period	Movement $	Movement %
Total Non-Current Assets

Summary NTA Return

Return Date:

Excluded / Intangible Assets

Non-Current Assets: Excluded/Intangible Assets - Note 3(f)

Current Period	Prior Period	Movement $	Movement %
Formation Costs
Goodwill
Patents, Trademarks & Preliminary Expenses
Deferred Tax Assets
Participant Rights / Access Membership to:
ASX 24
ASX
ASX Clear (Futures)
ASX Clear
Other Exchanges / Clearing Houses (provide details)
Unlisted Securities (provide details)
ASX Clear Participant commitment
ASX Clear (Futures) Participant commitment (cash only)

Other commitments (provide details)

Sub Total

Summary NTA Return

Return Date:

Reserves & Retained Earnings

Reserves & Retained Earnings - Note 6

Current Period	Prior Period	Movement $	Movement %
Accumulated Profits / (Losses) at beginning of month
Profit / (Loss) from Futures Operations for the month
Profit / (Loss) from Rest of Operations for the month
Accumulated Profits / (Losses) at end of month
Adjustment to Retained Earnings - Increases (provide details)
Adjustment to Retained Earnings - Decreases (provide details)
Other Revenue Reserves
Capital Reserves
Dividend
Other (provide details)
Total