Commonwealth Numbered Regulations - Explanatory Statements

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Statutory Rules 1998 No. 109

Issued by the Authority of the Treasurer

Corporations Act 1989

Corporations Regulations (Amendment)

Section 22 of the Corporations Act 1989 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act or the Corporations Law (the Law), prescribing matters required or permitted by the 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.

Section 1258 of the Corporations Law (the 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 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 purpose of the regulations is to amend Schedule 11 of the Corporations Regulations by including additional foreign futures exchanges and removing the London Commodity Exchange from the list to reflect a merger with the London International Financial Futures Exchange.

Details of the regulations are contained in the Attachment.


Regulation 1

Regulation 1 provides that the regulations commence on gazettal.

Regulation 2

Regulation 2 provides that the regulations amend the Corporations Regulations.

Regulation 3

Regulation 3 will include a further 6 specified foreign futures exchanges in the appropriate alphabetical positions in the Schedule.

The additional exchanges are:

Bolsa de Derivados do Porto (The Portuguese Futures and Options Exchange) (BDP)

Italian Stock Exchange

Korea Stock Exchange (KSE)

Kuala Lumpur Commodity Exchange (KLCE)

Kuala Lumpur Options and Financial Futures Exchange (KLOFFE)

Malaysia Monetary Exchange (MME).

London Commodity Exchange will also be deleted from the list of foreign futures exchanges in the Schedule to reflect its merger with the London International Financial Futures Exchange which is included in the list of foreign futures exchanges.

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