NEW ZEALAND GAZETTE, No. 41 31 MARCH 2011

The Authorised Futures Dealers (iPredict Limited) Notice 2011

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 (iPredict Limited) Notice 2011.

   (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 August 2013.

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

   Act means the Securities Markets Act 1988.

   branded market means a market established by the market provider but with a distinct name, branding and internet domain name.

   clearing house means Predictions Clearing Limited.

   Commission means the Securities Commission.

   ISCR means the New Zealand Institute for the Study of Competition and Regulation.

   market:

   (a) means the market that has been, or will be, established by the market provider for the purposes of trading specified futures contracts;

   and

   (b) includes a sponsored market or branded market.

   market provider means iPredict Limited.

   participant means any person who has an account with the market provider for the purposes of trading specified futures contracts.

   participant’s contribution limit, in respect of a participant, means $2,500 in any period of six months, with a cumulative total limit of $10,000, calculated as the total of all contributions paid by the participant less the total of all amounts reimbursed by the market provider.

   participants’ funds account means a call deposit account with a registered bank that is established and maintained by the clearing house for the purposes of the market.

   participation agreement means an agreement between the participant, the market provider, and the clearing house under which the market provider allows the participant to trade on the market and the participant agrees to be bound by the rules of the market.

   specified agreement means an agreement:

   (a) under which a participant has a contingent or an actual right to be paid, by the clearing house from funds held in the participants’ funds account, at a specified future date, an amount that depends on one or more political, business, economic, sociological, or demographic events or circumstances;

   (b) under which that payment may not exceed the total amount payable by participants for the acquisition from the market provider of a bundle of specified agreements of which the specified futures contract forms a part;

   (c) in respect of which a participant’s right referred to in paragraph (a) is able to be traded on the market; and

   (d) the terms of which are publicly available on an internet site maintained by, or on behalf of, the market provider at all reasonable times.

   specified future date includes a date that is described by referring to the day, or number of working days (including, to avoid doubt, the number of working or other specified type of days) after a specified future act or event happens or circumstance occurs.

   specified futures contract means:

   (a) a specified agreement;

   (b) a specified right.

   specified right means the right of a participant under paragraph (a) of the definition of “specified agreement” (whether held by the participant who is a party to that specified agreement or by another participant).

   sponsor means the person on whose behalf, or by arrangement with whom, the market provider establishes a sponsored market.

   sponsored market means a market established by the market provider on behalf of, or by arrangement with, a sponsor:

   (a) to meet specific information or research needs of the sponsor;

   (b) on which the only specified futures contracts able to be traded relate to one or more business projects or financial indicators of the sponsor;

   (c) in respect of which the sponsor, for the purposes of trading by any participant, may only contribute sponsor’s contributions that do not exceed the sponsor’s contribution limit.

   sponsor’s contribution means, in respect of a participant, an amount that a sponsor of a sponsored market certifies to the market provider:

   (a) has been or will be provided to the participant in a specified period for the purposes of trading exclusively on that sponsor’s sponsored market; and

   (b) will not be deducted from, or be taken into account in determining, the amount of any salary, bonus, benefit or other entitlement payable to that participant by or on behalf of that sponsor or any related party of that sponsor.

   sponsor’s contribution limit, in respect of a participant, means $1,000 in any period of six months.

   Vic Link means Victoria Link Limited.

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

3. Authorisation—(1) The market provider is authorised to carry on the business of dealing in specified futures contracts to which the market provider or clearing house is, or intends to be, a party.

   (2) For all markets other than branded markets, the authorisation in clause 3(1) is subject to the conditions that:

   (a) the only contracts which may be traded on the market are those declared to be contracts to which Part III of the Act relates pursuant to the declaration and exemption under section 37(7) and section 48(1)(d) of the Act known as the Futures Contracts (iPredict Limited) Declaration and Exemption Notice 2008;

   (b) the market provider must comply with all conditions of the Futures Contracts (iPredict Limited) Declaration and Exemption Notice 2008;

   (c) subject to clause 3(2)(d) the fees charged by the market provider and clearing house from participants may not exceed:

   (i) $20 for account opening; and