Pursuant to section 38 of the Securities Markets Act 1988, the Financial Markets Authority gives the following notice.
N o t i c e
1. Title, Commencement, and Expiry-(1) This notice is the Authorised Futures Dealers (Shell Eastern Trading (Pte) Limited) Notice 2011.
(2) This notice comes into force on the day after the date of its notification in the New Zealand Gazette.
(3) This notice expires on the close of 31 July 2016.
2. Interpretation-(1) In this notice, unless the context otherwise requires:
Act means the Securities Markets Act 1988.
company means Shell Eastern Trading (Pte) Limited acting through its registered business, Shell International Eastern Trading Company.
carbon price futures contracts means a futures contract in respect of the price of an "emissions unit" as that term is defined in section 37 of the Act.
oil price futures contract means a futures contract in respect of the price of oil or oil products, including crude oil, condensates, fuel oil, gasoil, gasoline, jet fuel, kerosene and naptha.
specified futures contract means an oil price futures contract or a carbon price futures contract.
wholesale client means any client that is:
(a) a person who controls at least $10 million; or
(b) a trustee of a trust or a funds manager, acting in that capacity, who has under that person’s control, as trustee or funds manager, net assets of at least $10 million; or
(c) a person 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 Crown Entities Act 2004, 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 a registered bank; or
(g) a person whose principal business is the investment of money or who, in the course of and for the purposes of their business, habitually invests money; or
(h) a person who is a related body corporate of any of the persons mentioned in paragraphs (a) to (g) above.
(2) Any term or expression that is defined in the Act and used, but not defined, in this notice has the same meaning given to it by the Act.
3. Authorisation-(1) The company is authorised to carry on the business of dealing in specified futures contracts.
(2) The authorisation in clause 3(1) is subject to the conditions that:
(a) in respect of every futures contract to which the authorisation applies, the company is, or intends to be, a party to the futures contract; and
(b) the company deals only on behalf of its wholesale clients; and
(c) before dealing in any futures contract in respect of which the authorisation applies, the company is satisfied on reasonable grounds that the wholesale client is contracting:
(i) as principal on its own account; or
(ii) on behalf of a related body corporate; or
(iii) a trustee of a trust or manager of a managed fund; and
(d) the terms of any specified futures contract require that any transfer of obligations under the futures contract can be made only to a person who meets the criteria described in paragraphs 3(2)(b) and (c) above; and
(e) the company does not carry on the business of dealing in specified futures contracts on behalf
of any client other than one who has entered into a written contract for services with the company, and then only in accordance with the terms of that contract; and
(f) the company provides the Financial Markets Authority with a copy of the company’s audited annual financial statements no later than the date by which the company would be required to file its financial statements if it was an issuer for the purposes of the Financial Reporting Act 1993; and
(g) the company notifies the Financial Markets Authority of any material matter concerning the company’s authorisation as a futures dealer; and
(h) the company notifies the Financial Markets Authority of any action taken by the Monetary Authority of Singapore, or any other competent regulatory agency.
Dated at Wellington this 17th day of July 2011.
SEAN HUGHES, Chief Executive, Financial Markets Authority.