On 20/05/2013,
you requested for the version in force on 20/05/2013
incorporating all amendments published on or before 20/05/2013.
The closest version currently available is that of 23/02/2009.
10. Section 63 of the principal Act is repealed and the following section substituted therefor:
63.
—(1) Where a member of a designated clearing house fails to meet its obligations to the designated clearing house that arise from contracts of customers of the member (referred to in this section as the subject obligations), the designated clearing house may use any money or assets deposited or paid for or in relation to contracts of customers of the member and held by the designated clearing house (including any money deposited in the trust account and any assets deposited in the custody account referred to in section 62(2)(a)) (collectively referred to in this section as customers’ money or assets) to meet the subject obligations, if —
(a)
the designated clearing house is of the opinion, formed in good faith, that the failure of the member to meet the subject obligations is directly attributable to the failure of any of the customers of the member to meet that customer’s obligations under any market contract;
(b)
either —
(i)
both of the following have been wholly utilised to meet the subject obligations:
(A)
any money or assets deposited or paid for or in relation to contracts of the member itself and held by the designated clearing house;
(B)
any money or assets deposited by the member with the designated clearing house as collateral or guarantee for the purpose of satisfying all obligations of the member to the designated clearing house (excluding any customers’ money or assets); or
(ii)
the designated clearing house has reasonable grounds for forming an opinion that the failure to use the customers’ money or assets to meet the subject obligations may jeopardise the financial integrity of the designated clearing house;
(c)
the designated clearing house has made provision in its business rules for the use of customers’ money or assets in the circumstances specified in paragraphs (a) and (b);
(d)
where the designated clearing house has made provision in its business rules for requirements additional to those in paragraphs (a) and (b), the additional requirements are not inconsistent with the requirements in those paragraphs; and
(e)
the money or assets are used in accordance with the provisions of the business rules referred to in paragraphs (c) and (d).
(2) A designated clearing house shall notify the Authority before using any such customers’ money or assets in the circumstances specified in subsection (1).”.