1 MARCH
NEW ZEALAND GAZETTE
935

behalf the LCH Deed of Release, and without limiting
the generality of that ratification and confirmation,
confirms the authority of the Company to give the
acknowledgement required by the Deed of Release.

57.5 The Company shall not be liable to any Clearing
Member in respect of any damage or loss arising or
occurring directly or indirectly by reason of the
Company’s execution of the LCH Deed of Release.

58. GENERAL TRANSITIONAL PROVISIONS

58.1 The purpose of this Rule 58 is to facilitate the
transfer of open positions from LCH to SFECH as
Clearing House for the Exchange.

58.2 Each Clearing Member acknowledges that pursuant
to the LCH Deed of Release, LCH shall release,
discharge, abandon or re-deliver or cause to be released,
discharged, abandoned, or re-delivered, any guarantees,
securities or other non-cash cover held by LCH in respect
of Contracts traded on the Exchange (“Non-Cash
Cover”).

58.3 (a) Each Clearing Member shall, no later than the
time required by SFECH make arrangements whereby
any Non-Cash Cover held by LCH at that date is
replaced to its full value in favour of SFECH on or before
the Business Day prior to the Agreed Date, by a bank
guarantee, or other security, or a cash equivalent,
acceptable to SFECH.

(b) Each Clearing Member shall, on or before the
Business Day prior to the Agreed Date provide to
SFECH and the Company such evidence as may be
deemed necessary by SFECH of the replacement Non-
Cash Cover established in accordance with Rule 58.3(a).

58.4 (a) Each Clearing Member acknowledges that, in
accordance with the LCH Deed of Release (the “Notification Time”) LCH will provide the
Company and SFECH with full particulars of all
Registered Positions of each Clearing Member.

(b) At or before the Notification Time, each Clearing
Member holding Registered Positions shall notify the
Company and SFECH, in the form prescribed by the
Company, details sufficient to transfer each such
Registered Position to a clearing member of SFECH
(including the number of such Registered Positions to be
transferred to such clearing member).

58.5 At or before 7.00 pm on the Agreed Date (or if the
Agreed Date is not a Business Day, the Business Day
prior to the Agreed Date) each Clearing Member shall
notify the Company and SFECH, in the form prescribed
by the Company, details sufficient to enable registration
by SFECH of Registrable Positions in the name of a
clearing member of SFECH, such details to include the
number of such Registrable Positions to be registered in
the name of such clearing member.

58.6 Each Clearing Member hereby appoints the
Chairman and Chief Executive of the Company jointly
and severally its agent, to nominate a clearing member or
clearing members of SFECH into whose name or names:

(a) Registered Positions are to be transferred, in the
event of the Clearing Member failing for any reason to
comply with Rule 58.4(b); and

(b) Registrable Positions shall be registered, in the
event of the Clearing Member failing for any reason to
comply with Rule 58.5.

58.7 Each Clearing Member acknowledges that upon:

(a) compliance by LCH with the LCH Deed of Release; and

(b) notification by each Clearing Member in
compliance with Rule 58.4(b) and 58.5, or nominations
by the Chairman or Chief Executive as attorney under
Rule 58.6;

SFECH shall, subject to the by-laws of SFECH, cause the
Total Positions to be registered by it in the name of the
clearing members who are authorised as transferees
under Rules 58.4(b), 58.5 and 58.6 in accordance with
the by-laws of SFECH.

59. EXPIRY OF SECTION 14

Section 14 and Schedule 5 shall expire and be deemed to
be cancelled upon the expiry of 15 months after the
Effective Date but without affecting in any way the
validity of any appointment, release, ratification,
indemnity, transfer, acknowledgement or other act,
matter or thing of any nature whatsoever made, given or
done pursuant to any provisions of Section 14 prior to
such expiry or of the LCH Deed of Release.

30. By inserting the following new clause as clause 10A in
    the Client Acknowledgement in Schedule 1:

10A. The Client has no rights, whether by way of
subrogation or otherwise, against any person other than
the Public Broker, in respect of Contracts traded on any
exchange or market or traded pursuant to the rules,
regulations or by-laws of any exchange or market, except
to the extent (if any) provided by any applicable law.

31. By deleting clause 21 of the Client Acknowledgement
    in Schedule 1 and substituting therefor the following new
    clause 21:

32. Where the Client is a clearing member of a clearing
    house and Contracts entered into by the Public Broker as
    a result of instructions received from the Client are
    registered in the name of the Client at that clearing
    house, or where such Contracts are registered in the
    name of a clearing member other than the Public Broker
    at the request of the Client, clauses 14-20 (inclusive) of this
    Client Acknowledgement do not apply in respect of those
    Contracts.

33. By inserting the following new clause as clause 10A in
    the Client Acknowledgement in Schedule 2:

10A. The Client has no rights, whether by way of
subrogation or otherwise, against any person other than
the Introducing Broker, in respect of Contracts traded on
any exchange or market or traded pursuant to the rules,
regulations or by-laws of any exchange or market, except
to the extent (if any) provided by any applicable law.

33. By deleting clause 31 of the Client Acknowledgement
    in Schedule 2 and substituting therefor the following
    clause 31:

34. Where the Client is a clearing member of a clearing
    house and Contracts entered into by the Public Broker as
    a result of instructions received from the Introducing
    Broker on behalf of the Client are registered in the name
    of the Client at that clearing house, or where such
    Contracts are registered in the name of a clearing
    member other than the Public Broker at the request of
    the Client, clauses 24 - 30 (inclusive) of this Client
    Acknowledgement do not apply in respect of those
    Contracts.

35. By inserting the following new Schedule as Schedule
    4:

SCHEDULE 4

CLEARING MEMBER GUARANTEE

TO: NEW ZEALAND FUTURES & OPTIONS
EXCHANGE LIMITED (the Company)

(the Guarantor Clearing Member)

(Full legal name of Clearing Member)