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CORPORATIONS REGULATIONS (AMENDMENT) 1997 NO. 142EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 142
Issued by the Authority of the Treasurer
Corporations Act 1989
Corporations Regulations (Amendment)
Section 22 of the Corporations Act 1989 (the Act) empowers the Governor-General to make regulations, not inconsistent with the Act or the Corporations Law, prescribing, inter alia, matters which are required by the Corporations Law to be prescribed by regulations, or necessary or convenient to be prescribed by regulations for carrying out or giving effect to the Corporations Law.
Both the Heads of Agreement and the draft Corporations Agreement require the Commonwealth to consult the States and the Northern Territory on legislative proposals relating to matters failing within Chapter 8 (The Futures Industry) of the Corporations Law. The proposed regulations relate to subject matters within Chapter 8 of the Corporations Law. The responsible Ministers of the States and the Northern Territory have been consulted about the proposed regulations and have not indicated that they have any difficulties with them.
Section 1258 of the Corporations Law limits the way in which a futures broker can deal in futures contracts on behalf of another person. Dealing on behalf of another person on a 'recognised futures exchange' is permitted by section 1258. The term 'recognised futures exchange' is defined in section 9 of the Corporations Law to mean a body corporate that conducts a futures market outside Australia and is prescribed for the purposes of this definition. By virtue of Corporations Regulation 8.2.02, the bodies corporate specified in Schedule 11 of the Corporations Regulations are prescribed for this purpose.
The amending regulations:
* include eight additional foreign futures exchanges in Schedule 11 of the Corporations Regulations;
* remove two exchanges which are no longer operational;
* correct the acronyms for eleven exchanges listed; and
* reflect one exchange's change of name.
Details of the regulations are contained in the Attachment.
The regulations commenced on the date of gazettal.
Regulation 1 provides that the Corporations Regulations are amended as set out in these Regulations.
Regulation 2 has substituted a new Schedule 11 (Recognised Futures Exchanges) in the Corporations Regulations.
The changes that have been made to Schedule 11 are:
* the following exchanges have been added to the list:
- Austrian Futures and Options Exchange (OTOB);
- Copenhagen Stock Exchange (including FUTOP Clearing Centre (FUTOP));
- Financiele Termijnmarkt Amsterdam N.V. (Financial Futures Market Amsterdam) (FTA);
- The London Securities and Derivatives Exchange Limited (OMLX);
- Marche des Options Negociables de Paris (Paris Traded Options Market) (MONEP);
- Oslo Stock Exchange (OSLO);
- Singapore Commodity Exchange Limited (SICOM);
- South African Futures Exchange (SAFEX); and
* the following non-operational futures exchanges have been removed:
- Chicago Rice and Cotton Exchange;
- The International Futures Exchange (Bermuda) Ltd. (INTEX); and
* the new name of London Futures and Options Exchange (FOX) - London Commodity Exchange (LCE) - has been substituted; and
* acronyms and abbreviations for a number of exchanges have been corrected or inserted.