4624
NEW ZEALAND GAZETTE
No. 206

12.8 If any Trading Permit Holder is at any time unable to access the Trading System but provision of the Trading System has not been suspended the Trading Permit Holder:

(a) must notify the Clearing House and the Company as soon as practicable;

(b) must leave its Trading System terminal switched on;

(c) may trade on a give-up basis through another Trading Permit Holder.

13. MISTAKES

13.1 If a Trading Permit Holder claims that its Trading System Operator has made a mistake in inputting any order into the Trading System the following provisions of this Rule 13 will apply.

13.2 The Trading Permit Holder claiming the mistake must:

(a) where possible, advise all other Trading Permit Holders that a mistake is claimed, by immediately activating the mistake notice keys on the Trading System; and

(b) contact the Trading Manager immediately and advise the relevant number of the trade in respect of which the mistake is claimed.

13.3 The Trading Manager will then use the message facilities on the Trading System to advise Trading Permit Holders the number of the trade claimed as a mistake.

13.4 The Trading Manager will then decide whether any trade arising from the mistake should be cancelled. In making this decision, the Trading Manager will have regard to the following:

(a) Whether the mistake has been claimed within a reasonable time from the time any trade subject to the mistake has been effected having due regard to all relevant circumstances. For the purposes of this Rule time is of the essence and a reasonable time will generally be deemed to be two minutes.

(b) Whether any trade affected by the mistake is, in the opinion of the Trading Manager, out of market. In determining whether a trade is out of market, the Trading Manager may refer to trading activity immediately prior to the mistake and must consult with a minimum of three Trading Permit Holders.

13.5 After considering each of the factors referred to in Rule 13.4 and any other factors which the Trading Manager deems relevant, the Trading Manager will determine the trades, if any, which are to be cancelled and will where possible use the message facilities on the Trading System to notify all Trading Permit Holders of the numbers of any trades cancelled.

13.6 The Trading Manager will, prior to registration of the trades which are to be cancelled in accordance with Rule 13.5, direct the Clearing House to cancel those trades.

13.7 The Trading Permit Holder by which the mistake has been made shall pay to the Company on demand such sum as may be fixed by the Company from time to time for the purpose of this Rule 13.7.

13.8 Upon receipt of a sum pursuant to Rule 13.7 the Company shall pay to the Trading Permit Holders which are counterparties to the trades cancelled such sum as may be fixed by the Company from time to time for the purpose of this Rule 13.8.

13.9 A decision of the Trading Manager under this Rule 13 shall be final and binding on all Trading Permit Holders and on all persons claiming through or under any Trading Permit Holder.

14. OUT OF MARKET TRADING

14.1 If the Company or any Trading Permit Holder claims that a trade is out of market the following provisions of this Rule 14 will apply.

14.2 The Trading Manager will advise all Trading Permit Holders as soon as practicable:

(a) that a particular trade is subject to review as being out of market; and

(b) the name of the employee of the Trading Permit Holder who has claimed that the trade is out of market.

14.3 The Trading Manager will call upon those Trading Permit Holders who participated in the relevant trade to explain the circumstances of the trade and the Trading Permit Holders concerned shall then immediately provide a full explanation of the circumstances of the trade to the Trading Manager.

14.4 The Trading Manager will review the relevant trade to determine whether it is out of market. In doing so the Trading Manager will follow the procedures set out in Rule 13.4 except that for the purposes of Rule 13.4(a) a reasonable time will generally be deemed to be five minutes.

14.5 The Trading Manager will advise all Trading Permit Holders as soon as practicable of the outcome of the review of any trade which is claimed to be out of market.

14.6 The Trading Manager will, prior to registration of any trade which the Trading Manager has determined is out of market, direct the Clearing House to cancel that trade.

14.7 The Trading Permit Holders which participated in a cancelled out of market trade shall be liable, at the discretion of the Company, to pay to the Company on demand such sum as may be fixed by the Company from time to time for the purpose of this Rule 14.7.

14.8 A decision of the Trading Manager under this Rule 14 shall be final and binding on all Trading Permit Holders and on all persons claiming through or under any Trading Permit Holder.

15. EXCHANGE FOR PHYSICAL TRANSACTIONS

15.1 An exchange of a physical transaction for a Contract may be effected where:

(a) a physical transaction in a commodity is completed by actual delivery, or a physical transaction in a commodity is entered into pursuant to which delivery of the commodity is required, or a transaction of a kind approved by the Company is entered into;

(b) at or about the same time a futures or option contract is entered into between the same parties for the same quantity of the same commodity or a substantially similar commodity;

(c) the physical transaction occurs outside the trading hours for the relevant class of Contract;

(d) full details of the physical transaction are recorded in such form as may be prescribed by the Company and are available to the Company upon request; and

(e) the contract is lodged with the Company with a request for registration as a Market Contract, together with a certificate in the prescribed form by the Trading Permit Holder lodging the contract that the transaction has been effected in accordance with these Rules, no later than the time at which the Exchange next opens for business.