Corporations (Foreign Exchange Markets) Exemption Notice 2004 (Cth)

Corporations (Foreign Exchange Markets) Exemption Notice 2004

I, ROSS CAMERON, Parliamentary Secretary to the Treasurer, issue this Notice under section 791C of the Corporations Act 2001.

Dated 9 March 2004

ROSS CAMERON

Parliamentary Secretary to the Treasurer

1. Name of Notice

This Notice is the Corporations (Foreign Exchange Markets) Exemption Notice 2004.

1. Commencement

This Notice commences on 11 March 2004.

1. Expiry

This Notice ceases to have effect at the end of 10 March 2005.

1. Definitions

In this Notice:

foreign entity means an entity that has its principal place of business in a foreign country.

overseas regulatory authority means a regulatory authority or self‑regulatory organisation in a foreign country whose regulatory responsibilities include regulation of the provision of financial services in the foreign country.

Note   Foreign country is defined in paragraph 22 (1) (f) of the Acts Interpretation Act 1901.

1. Application

This Notice applies to a financial market if:

(a)    the market operates in Australia and in a foreign country; and

(b)    each of the participants in the market is:

(i)    a professional investor or a wholesale client; or

(ii)    a foreign entity that is registered or licensed by an overseas regulatory authority; or

(iii)    a foreign entity that:

(A)     is carrying on a financial services business in the foreign country in which the entity’s principal place of residence is located; and

(B)     is not required to be registered or licensed by an overseas regulatory authority in that country when providing financial services in that country; and

(c)    only foreign exchange contracts, derivatives in relation to foreign exchange contracts and derivatives in relation to the value of a currency or the value at which a currency may be exchanged for another are dealt on the market; and

(d)    the operator of the market has notified ASIC in writing that the operator relies on this exemption.

1. Exemption

For section 791C of the Corporations Act 2001, and subject to the conditions mentioned in sections 7 to 10, a foreign exchange market to which this Notice applies is exempt from the operation of Part 7.2 of that Act.

1. Regulation

The foreign exchange market, or the operator of the market, must be:

(a)    regulated as a financial market, or exempt from regulation as a financial market, under a law of a foreign country in which the market operates; or

(b)    not required, under a law of a foreign country in which the market operates, to be regulated as a financial market by a body responsible for the regulation of financial markets in the foreign country.

1. Participants in the market

   The majority of the participants in the foreign exchange market must not have their principal place of business in Australia.

1. Clearing and settlement arrangements

The operator of the foreign exchange market:

(a)    must not operate a clearing and settlement facility for the market; and

(b)    may provide clearing and settlement arrangements for the market only by providing information and establishing procedures for the settlement of transactions effected through the market.

1. Providing assistance to ASIC

If ASIC asks the operator of the foreign exchange market about:

(a)    the total trading volume originating from Australian participants for a particular period; or

(b)    the proportion of the worldwide trading volume on the market that was conducted by Australian participants for that period; or

(c)    the current name and business address in Australia for each Australian participant;

the operator must, as soon as practicable after receiving the request, give ASIC all information that is reasonably available about the matter.