1 MARCH NEW ZEALAND GAZETTE

other than the Clearing Member which is a party thereto with the Clearing House.

32A. ALLOCATION, CONFIRMATION AND DESIGNATION OF TRADES

32A.1 In this Rule 32A:

“Client” has for the purposes of this Rule and of the Clearing By-Laws the meaning given to that term in the Regulations or as otherwise prescribed by the Company from time to time.

“Client Trade” means a Trade held by a Dealer as a result of instructions received from a client.

“confirmation” means confirmation in accordance with the prescribed procedures that the bought or sold side of a Market Contract has been:

(a) traded by a Trading Permit Holder; or

(b) accepted by allocation from another Trading Permit Holder.

“designation” in relation to a Trade, means the indication or designation in accordance with the prescribed procedures that the Trade is a House Trade or Client Trade.

“Holder” means the Dealer in whose name a Trade is recorded in the Trading System or, where that Dealer is not a Clearing Member, its Guarantor Clearing Member, upon the Trade being confirmed (or being deemed to be confirmed) by the Dealer.

“House Trade” means any Trade other than a Client Trade.

“prescribed procedures” in relation to any allocation, confirmation, designation or rejection pursuant to this Rule 32A means the relevant procedures therefor prescribed by the Company from time to time.

“Trade” means the bought or sold side of a Market Contract.

32A.2 A Trade may only be:

(a) recorded in the name of:

(i) the Trading Permit Holder which executed the trade; or

(ii) a Trading Permit Holder or Clearing Member to whom the Trade is allocated, or deemed to be allocated by the Trading Permit Holder referred to in paragraph (i) of this sub-clause.

(b) allocated by the Trading Permit Holder referred to in sub-clause (a)(i) of this Rule.

(c) allocated to a person which is a Trading Permit Holder or a Clearing Member.

32A.3 Where a Trade is entered into by a Trading Permit Holder:

(a) the Trading Permit Holder shall, in accordance with the prescribed procedures, either:

(i) designate the Trade as either a House Trade or a Client Trade; or

(ii) allocate the Trade to another person entitled to receive the allocation; or

(iii) reject the Trade, by notification of a dispute in accordance with the prescribed procedures.

(b) a failure to designate or allocate or reject the Trade within the relevant time specified in the prescribed procedures shall be deemed to be a confirmation of the Trade and, subject to any provision of the Regulations, these Rules, or the Clearing By-Laws, the Trade shall be deemed to be designated as a House Trade provided that where particulars of a Trade are entered into the Trading System the Trade shall be deemed to be recorded by both parties to the Trade.

(c) upon the resolution in accordance with these Rules or by agreement between the parties of a dispute in respect of a Trade, the Trade, as so resolved or agreed, shall be deemed to be confirmed by the party executing the Trade and the Company shall correct any entries in the Trading System accordingly.

32A.4 Where a Trading Permit Holder or Clearing Member receives an allocation of a Trade it may, in accordance with the prescribed procedures, either:

(a) designate the Trade as either a House Trade or a Client Trade; or

(b) allocate the Trade to another person entitled to receive the allocation.

32A.5 Any designation or allocation of a Trade by a Dealer shall be deemed to be a confirmation of that Trade by that Dealer and the last Holder of a Trade shall remain the Holder until the Trade is confirmed by any other eligible person to which the Trade is allocated.

32A.6 All designations and allocations shall be effected by the time specified in the prescribed procedures and all Trading Permit Holders and Clearing Members shall access the Trading System on a regular basis to ensure compliance with this requirement.

32A.7 Where the Trading Permit Holder which executed a Trade is not a Clearing Member:

(a) subject to sub-clause (b) of this Rule the Trade shall be deemed to be immediately allocated to the Guarantor Clearing Member of the Trading Permit Holder;

(b) any confirmation of the Trade by the Trading Permit Holder shall also be deemed to be a confirmation by the Guarantor Clearing Member of the Trading Permit Holder;

(c) an allocation deemed to be made under sub-clause (a) of this Rule shall cease to apply upon the Trading Permit Holder allocating the Trade to another eligible person and the allocation being confirmed by that person prior to any further confirmation by the Guarantor Clearing Member of the Trading Permit Holder.

32A.8 The Company may correct an entry of particulars of a Trade in the Trading System:

(a) prior to any confirmation of the Trade;

(b) after that time, with the consent of the Holders of both sides of the Contract;

(c) at any time, in accordance with a determination or finding of the Trading Manager in accordance with these Rules.

17. By deleting the words “AND ALLOCATION” from the heading to Rule 33.

18. By deleting the words “the Clearing House Regulations” from Rules 34.1(a) and 34.2(a) and substituting, in each case, the words “these Rules”.

19. By deleting the words “in respect of a Client Contract” from Rule 34.1(b) and by substituting the words “from a client in respect of a Contract”.

20. By deleting from Rule 34.2(b) the words “clients’ liability” and the words “under Client Contracts” and substituting the words “client’s liability” and the words “under Contracts traded on the Exchange” respectively.

21. By inserting immediately after Rule 34.2 the following new rule as Rule 34.2A:

34.2A(a) Where a client who has bought an option Contract either: