4140 NEW ZEALAND GAZETTE, No. 171 26 NOVEMBER 2009

to apply for approval of the code of practice Hazardous
Atmosphere Zones – AS/NZS 60079.10.1:2009.
This code has been developed by the ERMA New Zealand
and sets out a means of compliance with the requirements
of the Hazardous Substances (Classes 1 to 5 Controls)
Regulations 2001, Regulation 58, in respect of the
establishment of hazardous atmosphere zones.
It is version 2 of the code of practice AS/NZS
60079.10:2004 and AS/NZS 2430.3:2004 approved by
ERMA New Zealand in June 2009.
A copy of the code can be inspected at the Wellington
office of ERMA New Zealand, Level 1, BP House,
20 Customhouse Quay, Wellington.

It is also available on the ERMA New Zealand website
www.ermanz.govt.nz
Written submissions in relation to the approval of this code
can be made by mail, facsimile or email to:
Code of Practice Submissions, Hazardous Substances
Group, ERMA New Zealand, PO Box 131,
Wellington 6140. Facsimile: (04) 914 0433. Email:
submissions@ermanz.govt.nz
Submissions close on 29 January 2010.
ROB FORLONG, Chief Executive, ERMA New Zealand.
au9750

Securities Commission

Securities Markets Act 1988

The Authorised Futures Dealers Notice (No. 3) 2005 Amendment Notice 2009

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

Notice

Clause 1: Title, commencement, and principal notice—(1) This notice is the Authorised Futures Dealers Notice (No. 3)
2005 Amendment Notice 2009.

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

(3) This notice amends the Authorised Futures Dealers Notice (No. 3) 2005.

Clause 2: Renewal of and amendment to the principal notice—(1) Clause 1(3) of the Authorised Futures Dealers Notice
(No. 3) 2005 is amended by omitting
“30 November 2009”
and substituting
“30 June 2011”.

(2) The Authorised Futures Dealers Notice (No. 3) 2005 is amended by inserting the following clauses (including headings) in
their appropriate numerical order:

Clause 5: Capital adequacy requirements—(1) The company must at all times be able to pay its debts as they become due in
the normal course of business.

(2) The company must comply with the Regulations as if it were a dealer for the purposes of the Regulations.

(3) The company must ensure that its Surplus Liquid Funds exceeds at all times its Prescribed Liquid Funds Amount.

(4) The company’s Prescribed Liquid Funds Amount is $1,000,000.00.

(5) The company’s Surplus Liquid Funds is the aggregate of all of its Liquid Assets, less any risk-based reductions to its
Liquid Assets, less its Gross External Liabilities.

(6) The company’s Liquid Assets are:
(a) cash;
(b) cash equivalents (as defined by NZ IAS 7);
(c) trade receivables realisable within the next three months; and
(d) financial assets that have a ready market, which are valued at current market prices.

(7) In calculating the company’s Liquid Assets that calculation excludes:
(a) any client funds held by the company;
(b) the value of any asset encumbered as a security against another person’s liability;
(c) the assets of any trust of which the company is a trustee;
(d) loans and advances to, or amounts owing by, any related party or associate; and
(e) any asset that directly or indirectly funds an investment in or loan to the company itself.

(8) The company must apply the following risk-based reductions to the calculation of its Liquid Assets:
(a) for a futures contract entered into where the client has not paid to the futures dealer any margin due in respect of that
futures contract by the 2nd business day following the date the liability to make that margin payment arose, a reduction
of 120% on that uncollected margin;
(b) for equity securities held or receivable by the company including short positions:
(i) for leading equities (meaning NZSX listed equities or equities listed on the main board of an overseas exchange):
A. 10% for an equity ranked 1 to 50 in the leading index of the relevant exchange; or
B. 15% for all other equities quoted on the main board; and