2 FEBRUARY 2012 NEW ZEALAND GAZETTE, No. 11 267

Trading System has the meaning given to that term in the Rules.

(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 – NZX Limited declared an authorised futures exchange—(1) The Company is declared to be authorised to conduct a futures market in New Zealand.

(2) The authorised futures market which the Company is authorised to conduct is the NZX Derivatives Market.

(3) The authorisation in clause 3(1) of this notice is subject to the conditions set out in clauses 4 to 7 of this notice.

4. Conditions—(1) The Company must ensure that copies of the Rules and the Procedures are available for public inspection, free of charge and during normal office hours, at the registered office of the Company.

(2) The Company must notify and obtain the written consent of Financial Markets Authority (such consent not to be unreasonably withheld or delayed) in relation to any amendments to existing Contract Specifications or for designations of new Contract Specifications by the Company prior to such amendments or designations becoming effective.

(3) The Company must notify Financial Markets Authority of any proposed amendments to the Procedures before they are effected, and must obtain the written consent of Financial Markets Authority before making any amendments which, in the opinion of Financial Markets Authority, materially modify the application of any of the Rules.

(4) The Company must notify and obtain the written consent of Financial Markets Authority if it seeks to transfer or assign any of its rights, entitlements, or obligations under the Rules, the Procedures, the NZ Markets Disciplinary Tribunal Rules and related procedures to any Person.

(5) The Company must maintain real-time surveillance of the Market and undertake such surveillance to a standard satisfactory to Financial Markets Authority.

(6) The Company must notify Financial Markets Authority of any proposed amendments to the Rules and obtain the written consent of Financial Markets Authority before such amendments are effected in accordance with the Rules.

5. Conditions relating to directions by Financial Markets Authority to the Company—(1) The Company must, immediately upon receipt of a direction from the Financial Markets Authority under this clause 5, comply with that direction and must not allow any trading to take place on the Market contrary to the direction.

(2) Financial Markets Authority may make a direction to the Company after taking into account the purpose of subpart 1 of Part 2 of the Act and the criteria stated in section 19A of the Act or any other matters it considers relevant, if it is satisfied that the direction is necessary or desirable in the public interest to protect people trading Contracts and that there is no more appropriate course of action to address the situation.

(3) A direction under this clause 5 may, for up to 21 days:

(a) require the Company to suspend trading of one or more Contracts, or a class of Contracts, traded on the Market; or

(b) give the Company any other direction in relation to trading on the Market.

(4) Before giving a direction under this clause 5, Financial Markets Authority must follow the procedures set out in the Schedule to this notice.

(5) Financial Markets Authority may vary a direction given under this clause 5 in the same way as it made that direction.

(6) Financial Markets Authority may revoke a direction given under this clause 5 by giving written notice to the Company.

6. Conditions relating to reporting obligations—(1) The Company must notify Financial Markets Authority if the Company:

(a) takes any disciplinary action for a contravention of the Rules or Procedures against any person; or

(b) knows or suspects that a person has committed, is committing, or is likely to commit a significant contravention of:

(i) the Rules or Procedures; or

(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 Financial Markets Authority in order to carry out its functions.

(4) The Company must, if requested to do so in writing by Financial Markets Authority:

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

(b) make all reasonable endeavours to assist Financial Markets Authority 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 Financial Markets Authority agreeing to reimburse the Company for its reasonable costs in relation to the performance of those obligations.

(6) The Company must provide Financial Markets Authority with information, to the extent reasonably required by Financial Markets Authority, 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 Financial Markets Authority 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.