Pursuant to section 38 of the Securities Amendment Act 1988, the Securities Commission gives the following notice.
N o t i c e
1. Title, commencement and expiry-(1) This notice may be cited as the Authorised Futures Dealers Notice (No. 4) 2001.
(2) This notice comes into force on the day after the date of its publication in the New Zealand Gazette.
(3) This notice remains in force until revoked by the Commission.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
"Act" means the Securities Amendment Act 1988.
"Atriax" means Atriax Limited, a company incorporated in England and Wales.
"Exchange" means the New Zealand Futures and Options Exchange Limited.
"Foreign exchange futures contract" includes a forward exchange rate contract, exchange rate swap contract, exchange rate index contract, and any option on a foreign exchange futures contract.
(2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning as in the Act.
3. Authorisation-Atriax is authorised to carry on the business of dealing in foreign exchange futures contracts.
4. Application-This authorisation applies only to dealing in foreign exchange futures contracts that consists of advising or assisting a party or potential party to a foreign exchange futures contract in connection with the acquisition or disposition of such a contract in the course of Atriax carrying on the business of operating an internet based marketplace for foreign exchange products and related services.
5. Conditions-(1) The authorisation is subject to the condition that Atriax does not provide advice or assistance in connection with the acquisition or disposition of any futures contract except a foreign exchange futures contract to be entered into between:
(a) a party that is a registered bank within the meaning of section 2 (1) of the Reserve Bank of New Zealand Act 1989 or a bank licensed or authorised by the central banking authority of a jurisdiction other than New Zealand to carry on the business of banking in that jurisdiction; and either
(b) a second party that is also a registered bank within the meaning of section 2 (1) of the Reserve Bank of New Zealand Act 1989 or a bank licensed or authorised by the central banking authority of a jurisdiction other than New Zealand to carry on the business of banking in that jurisdiction; or
(c) a second party:
(i) who has entered into a contract for banking services or for the provision of credit with the party referred to in (a) above; and
(ii) in respect of whom Atriax is licensed or authorised to advise or assist in the acquisition or disposition of foreign exchange futures contracts under the laws of England and Wales; and
(iii) who has entered into a contract for services with Atriax, and only in accordance with the terms of that contract; and
(iv) who as a term of the contract for services with Atriax has certified that he, she or it is:
A a person who owns tangible assets of a market value of more than $10 million (or its equivalent in any currency); or
B a trustee or a funds manager, acting in that capacity, who has under that person's control, as trustee or funds manager, assets with an aggregate market value of more than $50 million (or its equivalent in any currency); or
C a person who is a dealer within the meaning of the rules of the Exchange and who is authorised to carry on the business of dealing in futures contracts under the Act; or
D a person authorised in another jurisdiction by the competent authority of that jurisdiction to deal in futures contracts; or
E Her Majesty the Queen in right of
New Zealand, a Crown entity named in the Fourth Schedule to the Public Finance Act 1989, or a State enterprise named in the First or Second Schedule to the
State-Owned Enterprises Act 1986 (each as amended from time to time); or
F a person who is a statutory corporation; or
G a person who is a related body corporate
of a person described in subparagraphs (A) to (F).
(2) The authorisation is subject to the further condition that Atriax, before advising or assisting in connection with the acquisition or disposition of any foreign exchange futures contract, is satisfied on reasonable grounds that the client is contracting:
(a) as a principal on its own account; or
(b) on behalf of a related body corporate; or
(c) as trustee of a trust or manager of a managed fund.
(3) The authorisation is subject to the further condition that the terms of every futures contract in respect of which the authorisation applies must:
(a) create obligations that cannot be transferred or terminated by either party to the futures contract without the consent of the other party; and
(b) require that any transfer of obligations under the futures contract can be made only to a person who meets the criteria described in clause 5 (1) (a) or (c).
(4) The authorisation is subject to the further condition that Atriax does not hold client money or client property in connection with dealing in futures contracts.
Dated at Wellington this 27th day of November 2001.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
J. DIPLOCK, Chairperson.