30 OCTOBER NEW ZEALAND GAZETTE 4143

Securities Commission

Securities Markets Act 1988

The Authorised Futures Dealers Notice (No. 6) 2003

Pursuant to section 38 of the Securities Markets Act 1988,
the Securities Commission gives the following notice.

Notice

1. Title, commencement and expiry—(1) This notice is
   the Authorised Futures Dealers Notice (No. 6) 2003.

(2) This notice comes into force on the day after the date of
its publication in the New Zealand Gazette.

(3) This notice expires on the close of 31 October 2008.

2. Interpretation—(1) In this notice, unless the context
   otherwise requires:

“Act” means the Securities Markets Act 1988.

“CFA” means Cantor Fitzgerald (Australia) Pty Limited.

“foreign exchange futures contract” includes an
exchange rate swap contract, forward exchange rate
contract, exchange rate index contract, and any
option on any of the foregoing.

“interest rate futures contract” includes an interest rate
swap agreement, forward interest rate contract, and
any option on any of the foregoing.

“matched principal basis” means a transaction whereby
CFA simultaneously enters into two identical futures
contracts with different parties, acting on opposite
sides of the futures contracts, thereby facilitating the
transaction between the two counterparties.

(2) Any term or expression that is defined in the Act and
used, but not defined, in this notice has the same meaning as
in the Act.

3. Authorisation—CFA is authorised to carry on the
   business of dealing in foreign exchange futures contracts
   and interest rate futures contracts.

4. Application—This authorisation applies only to dealing
   in foreign exchange futures contracts and interest rate
   futures contracts that consist of advising or assisting a party
   or potential party to a foreign exchange futures contract or
   interest rate futures contract in connection with the
   acquisition or disposition of such contract, including by
   entering into foreign exchange futures contracts or interest
   rate futures contracts on a matched principal basis, in the
   course of CFA carrying on the business of operating an
   electronic marketplace for foreign exchange futures
   contracts and interest rate futures contracts.

5. Conditions—(1) The authorisation is subject to the
   condition that CFA does not provide advice or assistance in
   connection with the acquisition or disposition of any futures
   contract except a foreign exchange futures contract or an
   interest rate futures contract to be entered into between two
   parties, each of which is either:

(a) a registered bank within the meaning of section 2 (1)
of the Reserve Bank of New Zealand Act 1989
or a bank licensed or authorised by the central
banking authority of a jurisdiction other than
New Zealand to carry on the business of banking in
that jurisdiction; or

(b) a party who CFA is satisfied on reasonable grounds
is:

(i) a person who owns tangible assets of a market
value of more than $10 million (or its
equivalent in any currency); or

(ii) a trustee or a funds manager, acting in that
capacity, which has under that person’s control,
as trustee or funds manager, assets with an
aggregate market value of more than $50
million (or its equivalent in any currency); or

(iii) a person who is authorised by the Securities
Commission under section 38 of the
Securities Markets Act 1988 to deal in futures
contracts; or

(iv) a person authorised in another jurisdiction by
the competent authority of that jurisdiction to
deal in futures contracts; or

(v) Her Majesty the Queen in right of New Zealand,
a Crown entity named in the Fourth Schedule
to the Public Finance Act 1989, or a State
enterprise named in the First or Second Schedule
to the State Owned Enterprises Act 1989 (each
as amended from time to time); or

(vi) a person which is a statutory corporation; or

(vii) a person who is a related body corporate of a
person described in subparagraphs (i) to (vi)
above.

(2) The authorisation is subject to the further condition that
CFA, before advising or assisting in connection with the
acquisition or disposition of any foreign exchange futures
contract or interest rate futures contract, is satisfied on
reasonable grounds that each party is contracting:

(a) as principal on its own account; or

(b) on behalf of a related body corporate; or

(c) as trustee of a trust or manager of a managed fund.

(3) The authorisation is subject to the further condition that
the terms of every futures contract in respect of which the
authorisation applies must:

(a) create obligations that cannot be transferred or
terminated by either party to the futures contract
without the consent of the other party; and

(b) require that any transfer of obligations under the
futures contract can be made only to a person who
meets the criteria described in clause 5 (1) (a) or (b).

(4) The authorisation is subject to the further condition that
CFA does not hold client money or client property in
connection with dealing in futures contracts.

Dated at Wellington this 21st day of October 2003.

The Common Seal of the Securities Commission was
affixed in the presence of:

[L.S.]

COLIN BEYER, Member of the Commission.

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