Corporations Regulations 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

PART 7.5A - REGULATION OF DERIVATIVE TRANSACTIONS AND DERIVATIVE TRADE REPOSITORIES  

Division 2 - Regulation of derivative transactions: derivative transaction rules  

Subdivision 2.1A - Derivative transaction rules imposing clearing requirements  

REGULATION 7.5A.62   MEANING OF FOREIGN CLEARING ENTITY  

7.5A.62(1)    
An entity is a

foreign clearing entity
, in relation to a derivative transaction to which it is a party otherwise than in a representative capacity, if:

(a) the entity is an ADI, or a financial services licensee, that:

(i) is incorporated or formed outside Australia; and

(ii) holds $100 billion or more in total gross notional outstanding positions otherwise than in a representative capacity; or

(b) the entity:

(i) is incorporated or formed outside Australia; and

(ii) in this jurisdiction, provides financial services relating to derivatives to wholesale clients only; and

(iii) is exempt under the Act (including these Regulations, or another instrument made under or for the purposes of the Act) from the requirement to hold a financial services licence for those financial services; and

(iv) is an entity whose activities relating to derivatives are regulated by an overseas regulatory authority; and

(v) holds $100 billion or more in total gross notional outstanding positions otherwise than in a representative capacity; or

(c) the entity is any other entity that:

(i) is incorporated or formed outside Australia; and

(ii) has, in accordance with any derivative transaction rules, opted to be treated, for the purposes of those rules, as a foreign clearing entity in relation to derivative transactions to which it is a party otherwise than in a representative capacity.

7.5A.62(2)    
An entity is a

foreign clearing entity
in relation to a derivative transaction to which it is a party in a representative capacity in the circumstances set out in the derivative transaction rules.