Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) An entity is a foreign clearing entity , in relation to a derivative transaction to which it is a party otherwise than in a representative capacity, if:
(a) the entity is an ADI, or a financial services licensee, that:
(i) is incorporated or formed outside Australia; and
(ii) holds $100 billion or more in total gross notional outstanding positions otherwise than in a representative capacity; or
(i) is incorporated or formed outside Australia; and
(ii) in this jurisdiction, provides financial services relating to derivatives to wholesale clients only; and
(iii) is exempt under the Act (including these Regulations, or another instrument made under or for the purposes of the Act) from the requirement to hold a financial services licence for those financial services; and
(iv) is an entity whose activities relating to derivatives are regulated by an overseas regulatory authority; and
(v) holds $100 billion or more in total gross notional outstanding positions otherwise than in a representative capacity; or
(c) the entity is any other entity that:
(i) is incorporated or formed outside Australia; and
(ii) has, in accordance with any derivative transaction rules, opted to be treated, for the purposes of those rules, as a foreign clearing entity in relation to derivative transactions to which it is a party otherwise than in a representative capacity.
(2) An entity is a foreign clearing entity in relation to a
derivative transaction to which it is a party in a representative capacity in
the circumstances set out in the derivative transaction rules.