Whole Section

  • 2.28B Fictitious Transactions Without Change in Ownership

    Added on 19 September 201619 September 2016.

    • 2.28B.1

      A Clearing Member shall ensure that it does not clear any trade where the beneficial interest in both sides of the trade belongs to the same person. The Clearing Member's record keeping and audit trails must show that it has taken reasonable measures to establish that both sides of the trade belong to different beneficial owners.

      This Rule does not apply in the following circumstances:

      a. the trade originates from a fund manager whose instructions are to switch the contract from one sub-account to another for legitimate commercial reasons;
      b. each side of the trade will be booked out finally to different beneficial owners;
      c. if the Clearing Member establishes to the Clearing House that the creation of a false market was not a purpose of the trade.

      Added on 19 September 201619 September 2016.