932 NEW ZEALAND GAZETTE No. 17

means a Clearing Member which is the guarantor under a current Clearing Member Guarantee in respect of that Trading Permit Holder.

3. By deleting the definition of the term “Client Contract” from Rule 2.1.

4. By deleting the definition of the term “give-up basis” in Rule 2.1 and substituting the following new definition of that term:

“give-up basis”, in relation to a trade by Dealer, means the execution of that trade by the Dealer on the basis that the trade will be allocated to another Dealer.

5. By deleting the words “Clearing House Regulations” from the definition of “Open Contract” in Rule 2.1 and from Rules 10.10, 11.7, 11.8, 12.2(c) and 15.4 and substituting in each case the words “Clearing By-Laws”.

6. By deleting Rule 8.3(a) and substituting the following new Rule 8.3(a):

(a) a member of the Clearing House or a person in respect of whom a current Clearing Member Guarantee is in existence; and

7. By deleting Rule 9.1(d) and substituting the following new Rule 9.1(d):

(d) provide the Company either with written confirmation that the applicant has been accepted as a Clearing Member or with a Clearing Member Guarantee in respect of the applicant;

8. By deleting from Rules 10.6(a), 10.6(d), 10.7(b), 10.7(c) and 10.7(d) the words “Clearing House” and substituting in each case the word “Company”.

9. By deleting Rules 10.6(b) and (c) and substituting the following new Rules 10.6(b) and (c):

(b) If in the opinion of the Company a situation is developing or has developed which is capable of preventing the Company from declaring a mandatory settlement price, the Company may take such steps, if any, as it deems necessary in the circumstances to correct the situation so as to enable it to declare a mandatory settlement price and may give directions to Trading Permit Holders accordingly.

(c) The Company may announce an indicative settlement price as soon as practicable. If it does so, it will declare and announce the mandatory settlement price as soon as practicable after announcement of the indicative settlement price, but in any event no later than the time specified in the Contract Specifications. Neither the Company, nor any of its employees, shall be liable to any person in the event that the mandatory settlement price differs from the indicative settlement price for any reason whatsoever.

10. By re-designating Rule 10.7(d) (as amended by clause 8 of these amendments) as Rule 10.7(e) and adding the following new rule as Rule 10.7(d):

(d) The Company will advise the Clearing House of the mandatory settlement price as soon as practicable but in any event no later than the time specified in the Contract Specifications.

11. By inserting the following new rule as Rule 10.8A:

10.8A The following provisions shall apply in respect of each class of option Contract:

(a) There shall be two types of option, namely:

(i) A call option (“call”) whereby in consideration of the payment of a contract premium the buyer acquires the right to buy, at an exercise price selected from a list of such prices determined in accordance with Rule 10.9, and the seller assumes the obligation to sell upon exercise of the option, the Underlying Security specified in the Contract Specifications.

(ii) A put option (“put”) whereby in consideration of the payment of a contract premium the buyer acquires the right to sell, at an exercise price selected from a list of such prices determined in accordance with Rule 10.9, and the seller assumes the obligation to buy upon exercise of the option, the Underlying Security specified in the Contract Specifications.

(b) The payment of the Contract premium by the buyer of an option Contract shall be subject to the margin calling requirements set out in Rule 34 unless it is payable in full at the time the option Contract is traded.

12. By inserting the following new rules as Rules 10.10(e) and (f):

10.10(e) Where the buyer of an option Contract either:

(i) exercises or abandons the option in accordance with Rule 10.10(a); or

(ii) has the option automatically exercised by the Clearing House or expire worthless on the expiration date, in accordance with Rule 10.10(c);

and the contract premium, or cover for the contract premium, has not already been paid to or lodged with the Clearing House the buyer of the option shall pay the value of the contract premium to the Clearing House in accordance with the Clearing By-Laws.

(f) Where the seller of an option Contract has been given a notice of exercise by the Clearing House pursuant to Rule 10.10(d), it will from the time of receiving such notice be entitled to receive the net value of the contract premium.

13. By inserting the following new Rules as Rules 11.9 and 11.10 respectively:

11.9 A Trading Permit Holder which is not a Clearing Member may not trade a Contract on the Exchange, or be allocated a Contract which has been traded on the Exchange, unless such Contract is the subject of a current Clearing Member Guarantee in respect of that Trading Permit Holder.

11.10 Each Clearing Member shall be bound by, and shall comply with, the terms of any Clearing Member Guarantee to which it is a party.

14. By inserting the word “Securities” before the word “Commission” in Rules 31.2 and 51.1.

15. By deleting the words “AND CLIENT CONTRACTS” from the heading to Rule 32.

16. By deleting Rules 32.2 and 32.3 and substituting the following new Rules 32.2 and 32A:

32.2 (a) Upon registration of a Market Contract by the Clearing House it shall, by virtue of the Clearing By-Laws, immediately be extinguished and replaced by two Open Contracts with the Clearing House in accordance with the Clearing By-Laws and the original parties to the Market Contract shall be released from their respective obligations to each other.

(b) All Contracts traded on the Exchange or otherwise pursuant to these Rules shall be between Trading Permit Holders as principals and except as required by the Clearing By-Laws or by these Rules neither the Clearing House nor the Company shall be obliged to recognise:

(i) the interest of any person in any Market Contract other than a Trading Permit Holder or Clearing Member which is a party thereto; nor

(ii) the interest of any person in any Open Contract.