(1) In this section:
"property" includes credit facilities and securities.
"relevant credit balance", in relation to a client of a futures broker, means the total of:
"settling", in relation to a dealing in a futures contract, includes making delivery, or taking delivery, of a commodity to which the futures contract relates.
(2) For the purposes of the definition of relevant credit balance in subsection (1), the value of an item of property at a particular time is:
(3) Where, in connection with:
(4) Without limiting the generality of subsection (3), where, in connection with dealings in futures contracts effected, whether in this jurisdiction or elsewhere, by a futures broker, the broker receives from a person an amount of money some or all of which is attributable to dealings in futures contracts so effected on behalf of clients of the broker, the broker must, on the next day on which the amount can be so deposited, deposit the amount in a clients' segregated account of the broker maintained in this jurisdiction or in the place where the broker receives the amount. (4A) A clients' segregated account of a futures broker must be designated as a clients' segregated account, unless it is maintained outside this jurisdiction and the law in force in the place where it is maintained requires it to be designated in some other way. (4B) If:
(5) Where, pursuant to this section, a futures broker deposits money in respect of a client in a clients' segregated account of the broker, the broker must not withdraw any of the money except for the purpose of:
(A) an Australian ADI; or (B) an approved foreign bank in relation to the broker; or
(5A) If, under subsection (5), a broker (the paying broker ) withdraws money from a clients' segregated account and pays it to another broker (the receiving broker ):
(5B) A notification under paragraph (5A)(a) may be in writing or in an electronic or other form and may convey its message by express words, or by a code or some other means understood by the brokers concerned. (6) A futures broker must not deal with property deposited by the broker in safe custody under subsection (3) except:
(7) A futures broker who invests as mentioned in paragraph (5)(d) money that was, in respect of a client of the broker, deposited by the broker under subsection (3):
(8) A futures broker must not invest an amount pursuant to paragraph (5)(d) by depositing it with a person for that person to invest unless:
(9) Where, at a particular time, the total amount of the relevant liabilities of a client of a futures broker exceeds the relevant credit balance of the client, the broker may, in respect of the client, deposit in a clients' segregated account of the broker an amount of money not greater than the amount of the excess, and, if the broker does so, the amount so deposited is, subject to subsection (10), taken to be money to which the client is entitled. (10) Where:
(11) A futures broker must keep in relation to the clients' segregated account, or clients' segregated accounts, of the broker financial records that:
(12) A futures broker must keep records that:
(13) Section 1213 applies, so far as it is capable of application, in relation to financial records, and other records, that are required by subsections (11) and (12), respectively, of this section to be kept by a futures broker, and so applies as if those accounting records and other records were financial records required by that section to be kept by the broker. (14) Subject to subsections (15) and (16), none of the following:
(15) Nothing in subsection (14) affects the right of a client of a futures broker to recover money or property to which the client is entitled. (16) Where a futures broker is entitled to withdraw money from a clients' segregated account of the broker for the purpose of making a payment to the broker, subsection (14) does not apply in relation to that money. (17) Where a futures broker invests money pursuant to paragraph (5)(d) by depositing it with a person for the person to invest, neither that money, nor any property in which the person invests any of that money, is available for the payment of a debt or liability of the person or is liable to be attached, or taken in execution, under the order or process of a court at the instance of a person suing in respect of such a debt or liability. (18) Nothing in this section affects a claim or lien that a futures broker has, under an agreement, under an Australian law or otherwise, against or on:
(19) A futures broker must not pay an amount into a client's segregated account of the broker except as required or authorised by this section or the regulations.