Notice Type
Authorities/Other Agencies of State
Notice Title

The Authorised Futures Dealers Notice (No. 6) 2003

Pursuant to section 38 of the Securities Markets Act 1988, the Securities Commission gives the following notice.
N o t i c e
1. Title, commencement and expiry-(1) This notice is the Authorised Futures Dealers Notice (No. 6) 2003.
(2) This notice comes into force on the day after the date of its publication in the New Zealand Gazette.
(3) This notice expires on the close of 31 October 2008.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
"Act" means the Securities Markets Act 1988.
"CFA" means Cantor Fitzgerald (Australia) Pty Limited.
"foreign exchange futures contract" includes an exchange rate swap contract, forward exchange rate contract, exchange rate index contract, and any option on any of the foregoing.
"interest rate futures contract" includes an interest rate swap agreement, forward interest rate contract, and any option on any of the foregoing.
"matched principal basis" means a transaction whereby CFA simultaneously enters into two identical futures contracts with different parties, acting on opposite sides of the futures contracts, thereby facilitating the transaction between the two counterparties.
(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-CFA is authorised to carry on the business of dealing in foreign exchange futures contracts and interest rate futures contracts.
4. Application-This authorisation applies only to dealing in foreign exchange futures contracts and interest rate futures contracts that consist of advising or assisting a party or potential party to a foreign exchange futures contract or interest rate futures contract in connection with the acquisition or disposition of such contract, including by entering into foreign exchange futures contracts or interest rate futures contracts on a matched principal basis, in the course of CFA carrying on the business of operating an electronic marketplace for foreign exchange futures contracts and interest rate futures contracts.
5. Conditions-(1) The authorisation is subject to the condition that CFA does not provide advice or assistance in connection with the acquisition or disposition of any futures contract except a foreign exchange futures contract or an interest rate futures contract to be entered into between two parties, each of which is either:
(a) 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
(b) a party who CFA is satisfied on reasonable grounds is:
(i) a person who owns tangible assets of a market value of more than $10 million (or its equivalent in any currency); or
(ii) a trustee or a funds manager, acting in that capacity, which 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
(iii) a person who is authorised by the Securities Commission under section 38 of the
Securities Markets Act 1988 to deal in futures contracts; or
(iv) a person authorised in another jurisdiction by the competent authority of that jurisdiction to deal in futures contracts; or
(v) 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 1989 (each as amended from time to time); or
(vi) a person which is a statutory corporation; or
(vii) a person who is a related body corporate of a person described in subparagraphs (i) to (vi) above.
(2) The authorisation is subject to the further condition that CFA, before advising or assisting in connection with the acquisition or disposition of any foreign exchange futures contract or interest rate futures contract, is satisfied on reasonable grounds that each party is contracting:
(a) as 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 (b).
(4) The authorisation is subject to the further condition that CFA does not hold client money or client property in connection with dealing in futures contracts.
Dated at Wellington this 21st day of October 2003.
The Common Seal of the Securities Commission was affixed in the presence of:
[L.S.]
COLIN BEYER, Member of the Commission.