934 NEW ZEALAND GAZETTE No. 17

(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 Public Broker the Public Broker shall call the value of the contract premium, unless the client is a Clearing Member and the option Contract has been allocated to that Clearing Member in accordance with the Clearing By-Laws.

(b) In the case of a bought option Contract, whether put or call, the total initial and variation margin liability shall not exceed the value of the contract premium.

22. By deleting the words “Client Contracts or other” from Rule 34.4(a).

23. By inserting the following new Rule as Rule 43.4A:

43.4A(a) If a claimant or a respondent carries on business as a Dealer from a place of business situated outside New Zealand it may at any time prior to the date of any pre-determination conference make a request in writing to the Business Conduct Committee that the dispute be determined on the written statements of the parties.

(b) The Business Conduct Committee shall, in considering a request pursuant to Rule 43.4A(a), have regard to all relevant circumstances including, in particular, the nature of the dispute and the amount of the sums involved and shall notify the parties and the arbitrator whether or not it agrees to any such request.

24. By deleting the words “Rules 43.3 or 43.4” from Rule 43.5 and substituting the words “Rules 43.3, 43.4 or 43.4A”.

25. By inserting the following words at the end of Rule 43.9:

and must do so if the Business Conduct Committee agrees to a request pursuant to Rule 43.4A(a), and in any such event the provisions of Rules 43.6, 43.7, 43.9 and 43.10 shall not apply to the dispute.

26. By inserting the word “or” immediately after the word “for” in Rule 52.10(i)(a).

27. By deleting Rule 50.11 and substituting the following new Rule 50.11:

50.11 If:

(a) a Dealer:

(i) suspends payment of its debts; or

(ii) calls a meeting of its creditors; or

(iii) (in the case of an individual or the members of a partnership) has a bankruptcy order made against him, her or all of them; or

(iv) (in the case of a company, society or partnership) has a receiver or statutory manager or similar person appointed of it or of all or any of its assets; or

(v) enters into liquidation (except voluntary liquidation for the purpose of an amalgamation or reconstruction); or

(b) a Dealer which is a Clearing Member ceases to be a Clearing Member (unless a Clearing Member Guarantee in respect of that Dealer is in existence at the time of such cessation and remains in full force), or if a Dealer is suspended as a Clearing Member; or

(c) a Clearing Member Guarantee in respect of a Dealer which is not a Clearing Member is terminated or otherwise ceases to be in full force for any reason and has not been replaced to the satisfaction of the Company;

the trading rights of that Dealer shall be suspended (without any prior decision of the Business Conduct Committee being required) from the time of the relevant event or from such other time as the Business Conduct Committee determines.

28. By inserting the following new Section as Section 13:

SECTION 13 - GOVERNING LAW

55. GOVERNING LAW

55.1 These Rules, and all Contracts traded on the Exchange or otherwise traded pursuant to these Rules, shall be governed by and construed in accordance with the laws of New Zealand.

29. By inserting the following new Section as Section 14:

SECTION 14 - TRANSITIONAL PROVISIONS

56. DEFINITIONS FOR TRANSITIONAL PROVISIONS

56.1 In Rules 57 and 58, except where inconsistent with the subject or context:

“Agreed Date” has the same meaning as in the LCH Deed of Release.

“Agreed Time” has the same meaning as in the LCH Deed of Release.

“LCH” means The London Clearing House Limited.

“LCH Deed of Release” means the deed entered into, or to be entered into, between the Company and LCH in the form set out in Schedule 5, or in such other form as may be prescribed by the Company.

“LCH Regulations” means the regulations entitled Membership Rules and Regulations of LCH for use in clearing the market of the Company.

“SFECH” means Sydney Futures Exchange Clearing House Pty Limited.

“Registered Positions” means all open positions with respect to Contracts traded on the Exchange which are registered with LCH pursuant to the LCH Regulations.

“Registrable Positions” means all open positions in respect of Contracts traded on the Exchange which are registrable with LCH, other than Registered Positions.

“Total Positions” means all open positions required to be registered by SFECH as at the opening of Exchange business on the Business Day immediately following the Agreed Date, comprising the Registered Positions referred to in Rule 58.4 and the Registrable Positions referred to in Rule 58.5.

57. RELEASE OF LCH GUARANTEES

57.1 The purpose of this Rule 57 is to facilitate the release of the guarantees subsisting from LCH to the Clearing Members under the LCH Regulations, such release being considered appropriate in the light of the termination of LCH’s appointment as Clearing House on and from the Agreed Time.

57.2 This Rule 57 shall have effect on and from the date that the LCH Deed of Release is executed by all parties (“Effective Date”).

57.3 Each Clearing Member as at the Effective Date irrevocably ratifies and confirms the appointment of the Company as its agent to execute for it and on its behalf the LCH Deed of Release.

57.4 Each Clearing Member as at the Agreed Time adopts the appointment of the Company referred to in Rule 57.3 and irrevocably ratifies and confirms the action of the Company as its agent in executing for it and on its behalf the LCH Deed of Release.