ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver 2022/516

ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver 2022/516

made under subrule 1.2.1(1) and rule 1.2.3 of the ASIC Market Integrity Rules (Capital) 2021, and subrule 1.2.1(1) and rule 1.2.3 of the ASIC Market Integrity Rules (Securities Markets) 2017

Compilation No. 1 

Compilation date: 20/05/2025

Includes amendments up to: ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver Amendment Instrument 2025/153 (F2025L00581)

About this compilation

This compilation

This is a compilation of the ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver 2022/516 that shows the text of the law as amended and in force on 20/05/2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Preliminary 4

1 Name of legislative instrument....................................4

3 Authority....................................................4

4 Definitions...................................................4

Part 2—Waivers 6

5 Waivers......................................................6

6 Where waivers apply...........................................6

7 Conditions...................................................6

8 Expiry ......................................................8

Endnotes 9

Endnote 1—About the endnotes.....................................9

Endnote 2—Abbreviation key.....................................10

Endnote 3—Legislation history....................................11

Endnote 4—Amendment history...................................12

Part 1—Preliminary

1 Name of legislative instrument

This instrument is ASIC Market Integrity Rules (Capital, Securities Markets) Barclays Capital Asia Limited Waiver 2022/516.

3 Authority

This instrument is made under:

(1) subrule 1.2.1(1) and rule 1.2.3 of the ASIC Market Integrity Rules (Capital) 2021; and

(2) subrule 1.2.1(1) and rule 1.2.3 of the ASIC Market Integrity Rules (Securities Markets) 2017.

Note: The ASIC Market Integrity Rules (Capital) 2021 and the ASIC Market Integrity Rules (Securities Markets) 2017 may be accessed on the Federal Register of Legislation at  www.legislation.gov.au.

4 Definitions

(1) In this instrument:

Alternative FX Position Risk Calculation means a calculation (including a calculation that is a component of another calculation) of a foreign exchange position risk amount for a position in a Financial Instrument, other asset or liability (except a position which is an Excluded Asset or a foreign exchange contract hedging Excluded Assets) which is denominated in a currency other than Hong Kong dollars.

BCAL means Barclays Capital Asia Limited (ARBN 625 731 295).

Business Day means a day that is not a Saturday, Sunday or a public holiday or bank holiday in Hong Kong, China.

Capital Rules means the ASIC Market Integrity Rules (Capital) 2021.

Financial Resources Return has the meaning given by paragraph 7(4)(d).

FX Position Risk Calculation means a calculation of a foreign exchange position risk amount for a position in a Financial Instrument, other asset or liability (except a position which is an Excluded Asset or a foreign exchange contract hedging Excluded Assets) which is denominated in a currency other than Australian dollars.

Limit has the meaning given by paragraph 7(1)(a).

SFC means the Securities and Futures Commission of Hong Kong.

(2) In this instrument, a reference to time is to the time in Sydney, Australia.

(3) Where a provision of this instrument requires BCAL to make or apply an FX Position Risk Calculation (including as a component of another calculation), BCAL may make or apply an Alternative FX Position Risk Calculation in respect of that Financial Instrument, other asset or liability in place of the FX Position Risk Calculation.

(4) Where a provision of this instrument requires BCAL to provide any document, return or declaration, BCAL may provide such document, return or declaration based on any information or calculation prepared in accordance with this instrument, and any statement by BCAL confirming compliance with the Capital Rules and ASIC Market Integrity Rules (Securities Markets) 2017 shall be construed to be qualified by this instrument.

Note: Other capitalised terms used in this instrument are defined in the Capital Rules.

Part 2—Waivers

5 Waivers

Subject to section 6, BCAL does not have to comply with:

(1)    a provision of the Capital Rules only to the extent that the provision requires BCAL to make or apply an FX Position Risk Calculation (including as a component of another calculation), provided that BCAL instead makes or applies an Alternative FX Position Risk Calculation in respect of that Financial Instrument, other asset or liability in place of the FX Position Risk Calculation;

(2)    paragraph 9.2.2(1)(b) and subparagraphs 9.2.2(2)(b)(i) and (ii) of the Capital Rules;

(3)    subparagraph 9.2.2(2)(b)(iii) of the Capital Rules

(4)    rule 9.2.3 of the Capital Rules;

(5)    subrule 9.2.4(1) of the Capital Rules; or

(6)    paragraph 4.3.2(1)(a) of the ASIC Market Integrity Rules (Securities Markets) 2017.

6 Where waivers apply

The waivers in section 5 apply where all of the following are satisfied:

(1)         BCAL is a company incorporated in Hong Kong, China;

(2)         BCAL is licensed by the SFC for Type 1 regulated activity (dealing in securities);

(3)         BCAL is a Participant of one or more Markets;

(4)         BCAL acts as a Participant of a Market only as agent on behalf of Barclays PLC or any of its subsidiaries.

7 Conditions

(1)     It is a condition of the waiver in subsection 5(2) that BCAL must:

(a)  develop and maintain a Limit (taking into account the historical size of the margin calls received from relevant clearing houses and any available counterparty risk mitigation measures) designed to monitor its Liquid Capital and its Total Risk Requirement;

(b)  if the Limit maintained in accordance with paragraph (a) is exceeded—immediately prepare a calculation of its Liquid Margin;

(c)  notify ASIC immediately if the calculation of Liquid Margin performed in accordance with paragraph (b) indicates that BCAL’s Liquid Capital divided by its Total Risk Requirement is less than or equal to 1.4;

(d)  by no later than one Business Day after giving notice to ASIC in accordance with paragraph (c), provide ASIC with an Ad Hoc Risk-Based Return, authorised by a director of BCAL, disclosing the amount of its Liquid Margin;

(e)  for so long as the Limit is exceeded and BCAL’s Liquid Capital divided by its Total Risk Requirement is less than or equal to 1.4, by 9:00 pm on the first Business Day of each week, provide ASIC with an Ad Hoc Risk-Based Return disclosing the amount of its Liquid Margin as at the close of business in Hong Kong on the last Business Day of the prior week; and

(f)   for so long as the Limit is exceeded and BCAL’s Liquid Capital divided by its Total Risk Requirement is less than or equal to 1.2, by 9:00 pm on each Business Day, provide ASIC with an Ad Hoc Risk-Based Return disclosing the amount of its Liquid Margin as at the close of business in Hong Kong on the prior Business Day.

(2)         It is a condition of the waiver in subsection 5(3) that BCAL must, for so long as its net assets are at any time equal to or fall below zero, by 9:00 pm on each Business Day, provide ASIC with an Ad Hoc Risk-Based Return showing its financial position as at the close of business in Hong Kong on the prior Business Day.

(3)         It is a condition of the waiver in subsection 5(4) that BCAL must prepare and deliver to ASIC no later than the 21st day of each calendar month, the following documents and information:

(a)  a Monthly Risk-Based Return, which accurately reflects BCAL’s accounts and financial position on the last Business Day of the previous calendar month which are prepared in accordance with accounting standards and principles which are generally accepted in Hong Kong; and

(b)  a Risk-Based Return Declaration relating to the Monthly Risk-Based Return, authorised by one director of BCAL.

(4)         It is a condition of the waivers in subsections 5(5) and (6) that BCAL must prepare and deliver to ASIC, within four months following the end of BCAL’s financial year:

(a)  BCAL’s statutory accounts, including directors’ declaration and auditor’s report as required under the laws of Hong Kong, which:

(i)    give a true and fair view of the financial position and performance of BCAL’s business as at the end of the financial year; and

(ii) which are prepared in accordance with accounting standards and principles which are generally accepted in Hong Kong;

(b)  an unaudited return in substantially the same form as the Annual Audited Risk-Based Return, which accurately reflects BCAL’s accounts and its financial position as at the end of BCAL’s financial year;

(c)  a Risk-Based Return Declaration relating to the unaudited return provided under paragraph 7(4)(b), authorised by one director of BCAL;

(d)  the annual Financial Resources Return and the related audit report submitted by BCAL to the SFC in respect of the financial year;

(e)  a statement in the form set out in Form 6 of Schedule 1C to the Capital Rules, dated and signed by a director of BCAL; and

(f)   a group structure chart showing BCAL’s corporate ownership structure starting at the ultimate parent, the immediate parent, BCAL, any subsidiaries (including nominee companies of BCAL) and any related/associated companies of BCAL that are involved in activities related to BCAL acting as a Participant of a Market.

Note:  The conditions imposed on a waiver must be complied with in order for the waiver to be effective: subrule 1.2.1(2) of both the Capital Rules and the ASIC Market Integrity Rules (Securities Markets) 2017.

8 Expiry

  This instrument ceases to have effect at the end of 1 July 2030.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history