NEW ZEALAND GAZETTE, No. 115

9 SEPTEMBER 2010

(ii) the Act, the Securities Act 1978, the Takeovers Act 1993 or any enactment made under any of those Acts.

(2) The Company must give the notice under clause 6(1) immediately after taking the disciplinary action, or knowing or suspecting the person has committed, is committing, or is likely to commit the significant contravention.

(3) Any notice given by the Company under clause 6(1) must include:

(a) the person’s name and contact details; and

(b) if it relates to a disciplinary action, the grounds for, nature of, and reasons for the action taken; and

(c) if it relates to a known or suspected contravention, the facts supporting the Company’s view and to which obligation the known or suspected contravention relates; and

(d) any other information reasonably required by the Securities Commission in order to carry out its functions.

(4) The Company must, if requested to do so in writing by the Securities Commission:

(a) give to the Securities Commission (or any person authorised by the Securities Commission) all information, assistance and access to the Company’s facilities that are necessary or desirable to enable the Securities Commission to fulfil its functions; and

(b) make all reasonable endeavours to assist the Securities Commission to acquire the licences or other assistance from any third parties that are necessary or desirable to enable it to undertake surveillance of the Market.

(5) The Company’s obligations in clause 6(4)(b) are subject to the Securities Commission agreeing to reimburse the Company for its reasonable costs in relation to the performance of those obligations.

(6) The Company must provide the Securities Commission with information, to the extent reasonably required by the Securities Commission, in relation to the Company’s senior management Personnel who manage the Market on a day to day basis as at the date of this notice, and must update this information where there are changes to such senior management Personnel.

(7) The Company must immediately notify the Securities Commission where it:

(a) receives any complaint in respect of the Company’s operation of the Market; or

(b) has received and considered a written complaint concerning:

(i) the Company or the Company’s operation of the Market; or

(ii) a Participant or its Directors or other Personnel,

where such complaint has not been resolved to the satisfaction of the complainant.

(8) The Company must provide the Securities Commission with notice in writing, as soon as reasonably practicable, where the Company:

(a) seeks to delegate to any Person, committee or body, with the exception of the Head of Market Supervision, any of the powers, rights and discretions of the Company under the Rules;

(b) seeks to designate a person (other than the Head of Market Supervision) as an NZX Designated Person and include in such notification the matters for which such person will be responsible; or

(c) seeks to approve a Market Maker Programme under the Rules.

(9) The Company is not required to provide the Securities Commission with notice in writing under clause 6(8)(a) of this notice in the circumstances where such delegation is limited to a period of less than five Trading Days.

(10) The Company must within three months after the end of its financial year, give a report to the Securities Commission on how well it has met its obligations under clause 7(1) of this notice in the preceding financial year.

(11) The Company must provide a report to the Securities Commission following completion of each risk assessment review to identify vulnerabilities in the Trading System at a minimum of every six months from the date of this notice.

7. Conditions relating to market supervision—(1) The Company must:

(a) to the extent that it is reasonably practicable, do all things necessary to ensure that the Market operates in a fair, orderly and transparent manner;

(b) have adequate arrangements for supervising the Market, include arrangements for:

(i) handling conflicts between the commercial interests of the Company and the need for the Company to ensure that the Market operates in a fair, orderly and transparent manner;

(ii) monitoring the conduct of Participants; and

(iii) enforcing compliance with the Rules and Procedures; and

(c) have sufficient resources (including financial, technological and human resources) to operate the Market properly and for the required supervisory arrangements to be provided.

Dated at Wellington this 6th day of September 2010.

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

[L.S.]

DAVID MAYHEW, Member.

Schedule

1. The Securities Commission will give written notice to the Company and if, after receiving the Securities Commission’s notice, the Company does not take, within two Trading Days:

(a) either:

(i) in the case of a proposed direction to suspend the trading of Contracts or a class of Contracts, actions to prevent that trading; or

(ii) in any other case, any other action, that, in the Securities Commission’s view, is adequate to assess the situation raised in the notice; and

(b) the Securities Commission has had regard to any written submissions made to it by the Company; and

(c) the Securities Commission still considers that it is appropriate to give the direction to the Company.

2. If the Securities Commission thinks it necessary or desirable in the public interest for a direction to be made more urgently than two Trading Days, it may give the Company less than two Trading Days’ notice but must include in that notice the reasons for acting urgently.

3. The written notice given by the Securities Commission to the Company under clause 1 of this Schedule must include:

(a) the Securities Commission’s opinion that the matters listed in clause 5(2) of this notice which are required to be satisfied, have been satisfied;

(b) the proposed terms of the direction; and

(c) the reasons for the Securities Commission’s opinion under clause 3(a) of this Schedule.