THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.2A - THE SECURITIES CLEARING HOUSE

SECTION 779B   APPROVAL OF SECURITIES CLEARING HOUSE  

779B(1)  [Application]  

A body corporate may apply to the Commission in writing for approval by the Minister as the securities clearing house.

779B(2)  [Minister may approve]  

Subject to section 102A, if a body so applies, the Minister may by writing approve the body as the securities clearing house if, and only if, he or she is satisfied that:

(a)  the body's business rules:

(i) include satisfactory provisions about:

(A) the facilities that the body proposes to provide for the settlement of transactions involving quoted securities or quoted rights; and

(B) the facilities that the body proposes to provide for the registration of transfers (within the meaning of Division 3 of Part 7.13) of quoted securities or quoted rights; and

(C) any other facilities that the body proposes to provide (such as facilities in relation to dealings in quoted securities or quoted rights); and

(ii) include satisfactory provisions about the disciplining of persons (being persons who will be SCH participants if the approval is given) who contravene the business rules or this Chapter; and

(iii) are otherwise satisfactory; and

(b)  the interests of the public will be served by granting the application.

779B(3)  [When approval comes into force]  

An approval comes into force on the day specified in the instrument giving the approval, being the day on which the approval is given or a later day.

779B(4)  [Only one approval]  

In exercising his or her powers under subsection (2), the Minister must ensure that no more than one approval is in force at any particular time.

779B(5)  [ Gazette ]  

The Commission must cause a copy of an instrument under this section to be published in the Gazette.