Australian Stock Exchange and National Guarantee Fund Act 1987 (Cth)

Australian Stock Exchange and National Guarantee Fund Act 1987 No. 6 of 1987 TABLE OF PROVISIONS PART I—PRELIMINARY Section 1. Short title 2. Commencement PART II—AMENDMENTS OF SECURITIES INDUSTRY ACT 1980 3. Principal Act 4. Interpretation 5. Insertion of new Part— PART IIa—AUSTRALIAN STOCK EXCHANGE LIMITED 36a. Interpretation 36b. Incorporation 36c. Names of Exchange and Exchange subsidiaries 36d. Additional functions and powers 36e. Memorandum, articles, listing rules and business rules of Exchange 36f. New memorandum and articles of nominated exchange 36g. Membership of Exchange 36h. Membership of nominated exchange 36j. Disciplinary proceedings in respect of past conduct of nominated exchange members 36k. Seat redemption scheme 36l. Exchange to take over main board listing agreements 36m. Transfer of certain assets of nominated exchange 36n. Transfer of Part VIII deposits held by nominated exchange 36p. How Parts VIII and IX apply in relation to a local Exchange subsidiary 36q. Appointment of new trustees of certain trusts 36r. Transfer of assets and liabilities of AASE 36s. Transfer of AASE employees 36t. Part not to prejudice corresponding provisions TABLE OF PROVISIONS—continued Section 6. Insertion of new section— 42b. Qualified privilege in respect of disciplinary proceedings 7. Repeal of sections 94a and 95 and substitution of new sections— 94a. Interpretation 95. Deposits to be lodged by member organisations 8. Deposit to be proportion of trust account balances 9. Deposits to be invested by stock exchange 10. Accounts in respect of deposits 11. Claims etc. not affected by this Part 12. Insertion of new section— 99a. Interpretation 13. Establishment of fidelity fund 14. Claims against the fund 15. Insertion of new Part— PART IXa—THE NATIONAL GUARANTEE FUND Division 1—Interpretation 122aa. Interpretation 122ab. Excluded persons 122ac. Becoming insolvent 122ad. Permitted investments Division 2—The Corporation 122ba. Ministerial Council to nominate 122bb. Functions and powers under Fund provisions 122bc. Commission to be notified of amendments to business rules Division 3—The Fund 122ca. Establishment 122cb. Property constituting Fund 122cc. Fund to be kept in separate bank account 122cd. Payments out of Fund 122da. Accounts of Fund 122db. Investment of Fund 122dc. Interest and profits from investment of Fund 122dd. Minimum amount of Fund Division 4—Levies where Fund less than Minimum Amount 122ea. Interpretation 122eb. Levy on reportable transactions 122ec. Payment by leviable dealer 122fa. Revocation of levy on reportable transactions 122fb. Levy on participating exchanges 122fc. Levy by participating exchange on members or member organisations Division 5—Securities Industry Development Accounts 122ga. Interpretation 122gb. Payments where Fund exceeds minimum amount 122gc. Payments into and out of development account 122gd. Investment 122ge. Accounts TABLE OF PROVISIONS—continued Division 6—Contract Guarantees Section 122h. Interpretation 122j. Claim by selling dealer in respect of default by buying dealer 122k. Claim by buying dealer in respect of default by selling dealer 122l. Claim by selling client in respect of default by selling dealer 122m. Claim by buying client in respect of default by buying dealer 122n. Cash settlement of claim where settlement documents unobtainable 122p. Making of claims Division 7—Claims in respect of Insolvent Members 122q. Interpretation 122r. Claim in respect of property entrusted to, or received by, dealer before dealer became insolvent 122s. Cash settlement of claims where property unobtainable 122t. Ordering of alternative claims and prevention of double recovery 122u. No claim in respect of money lent to dealer 122v. No claim in certain other cases 122w. Limits of compensation 122x. Making of claims Division 8—Claims under Divisions 6 and 7 122ya. Power of Corporation to allow and settle claim 122yb. Successful claimant entitled to costs and disbursements 122yc. Interest 122yd. Application of Fund in respect of certain claims 122ye. Allowing of claim not to constitute admission 122yf. Corporation to notify claimant where claim disallowed 122yg. Proceedings in the Court 122yh. Arbitration of amount of cash settlement of certain claims 122yj. Form of order of Court establishing claim 122yk. Power of Board to require production of securities etc. 122za. Subrogation of Corporation to claimant's rights etc. 122zb. Payment of claims only from Fund 122zc. Corporation may enter into contracts of insurance or indemnity 122zd. Instalment payments Division 9—Transitional 122ze. Interpretation 122zf. Assets and liabilities of transferring exchange's fidelity fund 122zg. Final accounts in respect of transferring exchange's fidelity fund 122zh. Application of liability provisions in relation to transferred claims PART III—AMENDMENTS OF COMPANIES (ACQUISITION OF SHARES) ACT 1980 16. Principal Act 17. Definitions 18. Other interpretative and evidentiary provisions 19. Take-over announcements 20. Declaration where take-over offers are conditional 21. Withdrawal of on-market offers 22. Suspension of acceptance of offers made by virtue of take-over announcement PART IV—AMENDMENTS OF COMPANIES ACT 1981 23. Principal Act 24. Interpretation 25. Copy of notice to be served on securities exchanges TABLE OF PROVISIONS—continued Section PART V—AMENDMENTS OF COMPANIES AND SECURITIES (INTERPRETATION AND MISCELLANEOUS PROVISIONS) ACT 1980 26. Principal Act 27. Definitions PART VI—AMENDMENTS OF NATIONAL COMPANIES AND SECURITIES COMMISSION ACT 1979 28. Principal Act 29. Interpretation Australian Stock Exchange and National Guarantee Fund Act 1987 No. 6 of 1987 An Act to amend laws relating to companies and securities, and for related purposes [Assented to 13 March 1987] BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows: PART I—PRELIMINARY Short title 1. This Act may be cited as the Australian Stock Exchange and National Guarantee Fund Act 1987. Commencement 2. (1) Subject to this section, the provisions of this Act shall come into operation on a day to be fixed by Proclamation. (2) Part I shall come into operation on the day on which this Act receives the Royal Assent. PART II—AMENDMENTS OF SECURITIES INDUSTRY ACT 1980 Principal Act 3. The Securities Industry Act 19801 is in this Part referred to as the Principal Act. Interpretation 4. Section 4 of the Principal Act is amended: (a) by inserting after the definition of "arbitrage transaction" in subsection (1) the following definition: " 'articles' means articles of association;"; (b) by omitting from subsection (1) the definition of "business rules" and substituting the following definition: " 'business rules', in relation to a body corporate, means: (a) in the case of a body corporate that maintains or provides, or proposes to maintain or provide, a stock market—the provisions of the constituent documents of the body corporate and any other rules, regulations or by-laws made by the body corporate, other than rules, regulations or by-laws that are listing rules of the body corporate; and (b) in any other case—the provisions of the constituent documents of the body corporate and any other rules, regulations or by-laws made by the body corporate;"; (c) by omitting from subsection (1) the definition of "committee" and substituting the following definitions: " 'committee', in relation to a body corporate, means the committee of management, board of directors, council or other governing authority of the body corporate; 'Corporation' means a body corporate in relation to which a nomination as the National Securities Exchanges Guarantee Corporation is in force under subsection 122ba (1);"; (d) by inserting after the definition of "director" in subsection (1) the following definitions: " 'Exchange' means Australian Stock Exchange Limited; 'Exchange subsidiary' means a securities exchange, or a recognised securities exchange, that is a subsidiary of the Exchange;"; (e) by omitting from subsection (1) the definition of "function" and substituting the following definitions: " 'fidelity fund', in relation to a securities exchange, means the fidelity fund (if any) that section 100 requires or required the securities exchange to establish and keep; 'function' includes a duty; 'Fund' means the National Guarantee Fund established under subsection 122ca (1);"; (f) by inserting after the definition of "listing rules" in subsection (1) the following definition: " 'local Exchange subsidiary' means a securities exchange that is an Exchange subsidiary;"; (g) by omitting from subsection (1) the definitions of "member" and "member firm" and substituting the following definitions: "member', in relation to a securities exchange or a recognised securities exchange, means, except in the definition of 'member organisation' and in Part IIa, a person who is, or who is a partner in, a member organisation of the securities exchange or recognised securities exchange; 'member firm', in relation to a securities exchange or a recognised securities exchange, means a partnership that is a member organisation of the securities exchange or recognised securities exchange; 'member organisation', in relation to a securities exchange or a recognised securities exchange, means: (a) a member of the securities exchange or recognised securities exchange who or that carries on a business of dealing in securities on his, her or its own account and not in partnership; or (b) a partnership that carries on a business of dealing in securities and is recognised by the securities exchange or recognised securities exchange as a member organisation or member firm; 'memorandum' means memorandum of association;"; (h) by inserting after the definition of "recognized licensee" in subsection (1) the following definitions: " 'recognised securities exchange' means a body corporate that is a securities exchange for the purposes of a corresponding law of a participating State or participating Territory; 'recognised stock exchange' means a body corporate that is a stock exchange for the purposes of a corresponding law of a participating State or participating Territory;"; (j) by omitting from subsection (1) the definition of "sole trader" and substituting the following definition: " 'sole trader' means a person who is a member organisation of a securities exchange or of a recognised securities exchange;"; and (k) by omitting from subsection (1) the definition of "stock exchange" and substituting the following definition: " 'stock exchange' means: (a) the Exchange; or (b) a body corporate that is approved by the Ministerial Council under section 38;". 5. After section 36 of the Principal Act the following Part is inserted: "PART IIA—AUSTRALIAN STOCK EXCHANGE LIMITED Interpretation "36a. (1) In this Part: 'AASE' means Australian Associated Stock Exchanges; 'nominated exchange' means the stock exchange (if any) nominated by AASE, for the purposes of this Part, by notice in writing lodged with the Commission before the relevant commencement; 'relevant commencement' means the commencement of section 5 of the Australian Stock Exchange and National Guarantee Fund Act 1987. "(2) A person who contravenes a provision of this Part is guilty of an offence neither by virtue of that provision nor by virtue of section 141. Incorporation "36b. (1) A body corporate by the name of Australian Stock Exchange Limited is incorporated in the Australian Capital Territory. "(2) Subject to this Part, the Exchange shall be deemed for the purposes of a relevant Act to be incorporated under the Companies Act 1981 and to be a company limited by guarantee. "(3) Notwithstanding anything in this Act, the Exchange shall not be taken for the purposes of a law of the Commonwealth, of a State or of a Territory to have been incorporated or established for a public purpose or for a purpose of the Commonwealth. Names of Exchange and Exchange subsidiaries "36c. (1) The name 'Australian Stock Exchange Limited' shall be deemed to have been registered at the relevant commencement, in respect of the Exchange, under subsection 40 (4) of the Companies Act 1981. "(2) The names: (a) 'Australian Stock Exchange (Adelaide) Limited'; (b) 'Australian Stock Exchange (Brisbane) Limited'; (c) 'Australian Stock Exchange (Hobart) Limited'; (d) 'Australian Stock Exchange (Melbourne) Limited'; (e) 'Australian Stock Exchange (Perth) Limited'; and (f) 'Australian Stock Exchange (Sydney) Limited'; shall be deemed to have been registered at the relevant commencement under section 45 of the Companies Act 1981 in respect of: (g) The Stock Exchange of Adelaide Limited; (h) The Brisbane Stock Exchange Limited; (j) The Hobart Stock Exchange Limited; (k) The Stock Exchange of Melbourne Limited; (m) The Stock Exchange of Perth Limited; and (n) The Sydney Stock Exchange Limited; respectively. "(3) The registration, under Division 2 of Part III of the Companies Act 1981, of each of the names referred to in paragraphs (2) (g) to (n), inclusive, shall be deemed to have been cancelled at the relevant commencement under that Division. "(4) This section has effect notwithstanding anything in Division 2 of Part III of the Companies Act 1981, but nothing in this section prevents the cancellation, in accordance with that Division, of the registration of a name. Additional functions and powers "36d. (1) In addition to the legal capacity and powers that it has by virtue of section 67 of the Companies Act 1981, the Exchange: (a) has such functions and powers as are conferred on it by a relevant Act; and (b) shall perform any functions, and may exercise any powers, that are conferred, or expressed to be conferred, on it by a State Act or by a regulation or other instrument made under, or by virtue of, a State Act. "(2) Section 68 of the Companies Act 1981 does not apply in relation to a function or power conferred, or expressed to be conferred, as mentioned in paragraph (1) (a) or (b) of this section. "(3) Except so far as the contrary intention appears, a reference in this Act to functions or powers of the Exchange includes a reference to functions or powers conferred, or expressed to be conferred, as mentioned in paragraph (1) (a) or (b). Memorandum, articles, listing rules and business rules of Exchange "36e. (1) The memorandum of the Exchange is the proposed memorandum of the Exchange that AASE lodged with the Commission before the relevant commencement. "(2) The articles of the Exchange are the proposed articles of the Exchange that AASE lodged with the Commission before the relevant commencement. "(3) The memorandum and articles of the Exchange shall be deemed to have been registered at the relevant commencement under the Companies Act 1981 and that Act has effect accordingly. "(4) As from the relevant commencement, the proposed listing rules, and the proposed business rules, of the Exchange that AASE lodged with the Commission before that commencement shall be deemed for the purposes of a relevant Act to be rules made by the Exchange at that commencement under its articles. New memorandum and articles of nominated exchange "36f. (1) As from the relevant commencement, the memorandum of the nominated exchange is the proposed new memorandum of the nominated exchange that AASE lodged with the Commission before that commencement. "(2) As from the relevant commencement, the articles of the nominated exchange are the proposed new articles of the nominated exchange that AASE lodged with the Commission before that commencement. "(3) This section has effect notwithstanding anything in the Companies Act 1981 but, as from the relevant commencement, that Act applies in relation to the memorandum and articles of the nominated exchange as if they had been registered as such under that Act. Membership of Exchange "36g. (1) A person who immediately before the relevant commencement was a member of the nominated exchange otherwise than by reason only of being, for the purposes of the nominated exchange's articles, a Registered Options Member becomes at that commencement a member of the Exchange. "(2) A person of a kind declared, by a provision of a law of a participating State or participating Territory that corresponds with subsection (1), to become at the relevant commencement a member of the Exchange becomes at that commencement a member of the Exchange. "(3) Subject to this Act, a person of a kind referred to in subsection (1) or (2) is, in respect of membership of the Exchange, entitled to the same rights, privileges and benefits, and subject to the same duties, liabilities and obligations, as if the person had become a member of the Exchange in accordance with the Exchange's business rules. Membership of nominated exchange "36h. (1) A person who immediately before the relevant commencement was a member of the nominated exchange ceases at that commencement to be such a member. "(2) Notwithstanding section 360 of the Companies Act 1981, a person who ceases by virtue of subsection (1) of this section to be a member of the nominated exchange is not by virtue of having been such a member liable to contribute to the property of the nominated exchange if the nominated exchange is wound up. "(3) The Exchange becomes at the relevant commencement a member of the nominated exchange. "(4) The Exchange becomes at the relevant commencement a member of each body corporate of which the Exchange is declared, by a provision of a law of a participating State or participating Territory that corresponds with subsection (3), to become a member at that commencement. "(5) In respect of membership of the nominated exchange, the Exchange is entitled to the same rights, privileges and benefits, and subject to the same duties, liabilities and obligations, as if the Exchange had become a member of the nominated exchange in accordance with the nominated exchange's business rules. "(6) After the relevant commencement, a person other than the Exchange is not capable of being a member of the nominated exchange. "(7) Subsection 82 (1) of the Companies Act 1981 does not apply in relation to a company within the meaning of that Act if, and for so long only as, the company is an Exchange subsidiary. "(8) A body corporate that is at a particular time: (a) a company within the meaning of the Companies Act 1981; and (b) an Exchange subsidiary; shall be deemed, for the purposes only of section 250 of that Act, to be at that time an exempt proprietary company. "(9) A person who immediately before the relevant commencement was a director of the nominated exchange ceases at that commencement to be such a director. "(10) Subsection 219 (1) of the Companies Act 1981 does not, at any time during the period of 14 days beginning at the relevant commencement, apply in relation to a company within the meaning of that Act that is an Exchange subsidiary. Disciplinary proceedings in respect of past conduct of nominated exchange members "36j. (1) In this section, unless the contrary intention appears: 'AASE exchange' means: (a) the nominated exchange; or (b) a body corporate that is the nominated exchange for the purposes of the provisions of a law of a participating State or participating Territory that correspond with this Part; 'applied rules' means the former rules as they have effect by virtue of this section; 'corresponding provision' means a provision of a law of a participating State or participating Territory that corresponds with this section; 'disciplinary proceeding' means: (a) a proceeding that was begun under the former rules and might, if this Part had not been enacted, have resulted in the disciplining of a member for past conduct; (b) a proceeding that is begun under the applied rules and may result in the disciplining of a member for past conduct; (c) an appeal begun under the former rules, or the applied rules, from a proceeding of the kind referred to in paragraph (a); (d) an appeal begun under the applied rules from a proceeding of a kind referred to in paragraph (b); or (e) a proceeding in a court, whenever begun, arising out of, or otherwise connected with, a proceeding or appeal of a kind referred to in paragraph (a), (b), (c) or (d); 'disciplining', in relation to a member, includes expulsion from, or suspension of, membership of the nominated exchange or the Exchange; 'former rules' means the nominated exchange's business rules as in force at any time before the relevant commencement; 'member' means a person who is or has been: (a) a member of the nominated exchange; or (b) under an obligation to comply with, observe, enforce, or give effect to, the former rules; 'past conduct' means an act done, or omitted to be done, before the relevant commencement; 'relevant time' means the time immediately before the relevant commencement. "(2) This section has effect notwithstanding section 36f. "(3) The former rules continue after the relevant commencement to have in relation to past conduct the effect that, at the relevant time, they had in relation to that past conduct. "(4) For the purposes of a disciplinary proceeding begun before the relevant commencement, the former rules continue after that commencement to have the effect that, at the relevant time, they had for the purposes of that disciplinary proceeding. "(5) For the purposes of a disciplinary proceeding begun after the relevant commencement, the former rules have the effect that, if that disciplinary proceeding had begun at the relevant time, they would have had at that time for the purposes of that disciplinary proceeding. "(6) The former rules have effect by virtue of subsections (3), (4) and (5): (a) subject to paragraph (b) of this subsection, as if a reference in the former rules to the nominated exchange or to an AASE exchange were, except in relation to a time before the relevant commencement, a reference to the Exchange; (b) as if a reference in the former rules to the former rules, or to a provision of the former rules, were, except in relation to a time before that commencement, a reference to the former rules as they have effect, or to that provision as it has effect, as the case may be, by virtue of this section; and (c) with such other modifications as the circumstances require. "(7) The applied rules within the meaning of this section or of a corresponding provision bind an eligible person to the same extent, and in the same manner, as if they were contained in the Exchange's business rules. "(8) In subsection (7), 'eligible person' means the Exchange or a person who is or has been: (a) a member of the Exchange; or (b) under an obligation to comply with, observe, enforce, or give effect to, the Exchange's business rules. "(9) Without limiting the generality of subsection (7), section 42 applies in relation to the applied rules within the meaning of this section or of a corresponding provision as if they were contained in the Exchange's business rules. "(10) At the relevant commencement, the Exchange is substituted for the nominated exchange as a party to each disciplinary proceeding. "(11) As from the relevant commencement, the Exchange has, subject to this section, the same rights in a disciplinary proceeding as the party for which it was substituted by virtue of subsection (10). "(12) Where: (a) under an AASE exchange's business rules as in force at any time before the relevant commencement, a person was: (i) suspended for a specified period from some or all of the rights of membership of that AASE exchange; or (ii) prohibited for a specified period from transacting business with or through a member or member organisation of an AASE exchange; and (b) as at that commencement, the specified period has not ended; then, as from that commencement: (c) the person is, throughout the remainder of the specified period, suspended from the corresponding rights of membership of the Exchange, or prohibited from transacting business with or through a member or member organisation of the Exchange, as the case may be; and (d) the suspension or prohibition referred to in paragraph (c) is subject to the terms and conditions (if any), with such modifications as the circumstances require, to which the suspension or prohibition referred to in paragraph (a) was subject immediately before the relevant commencement. Seat redemption scheme "36k. (1) In this section: 'available money' means: (a) if the Commission determines an amount in writing for the purposes of this paragraph—so much of the amount that the nominated exchange pays to the Exchange under subsection 36m (3) as does not exceed the amount that the Commission so determines; (b) amounts of levies imposed: (i) under the Exchange's business rules; (ii) on local members; and (iii) for the purposes of enabling the Exchange to comply with the Scheme; (c) fees payable, in respect of their admission to membership of the Exchange, by persons who immediately after their admission are local members; and (d) the interest and profits accruing from the investment of money that is available money by virtue of a previous application or previous applications of this definition; 'eligible person' means a person who was throughout the relevant period a member of the nominated exchange; 'local member' means a member of the Exchange whose Home Jurisdiction for the purposes of the Exchange's articles is the Territory; 'relevant period' means the period commencing immediately before 1 July 1983 and ending immediately before the relevant commencement; 'Scheme' means the seat redemption scheme (if any) of the nominated exchange, being the scheme particulars of which are set out in the notice referred to in the definition of 'nominated exchange' in subsection 36a (1). "(2) After the relevant commencement, the Scheme has effect, with such modifications as the circumstances require, as if the Exchange were substituted for the nominated exchange as a party to the Scheme and, except in relation to a time before that commencement: (a) a reference in the provisions of the Scheme to the nominated exchange or to the committee of the nominated exchange were a reference to the Exchange, or to the committee of the Exchange, as the case may be; and (b) a reference in the provisions of the Scheme to a person ceasing to be a member of the nominated exchange were a reference to an eligible person ceasing to be a member of the Exchange. "(3) An eligible person shall not, by reason only of ceasing by virtue of subsection 36h (1) to be a member of the nominated exchange, be taken for the purposes of the Scheme to have ceased to be a member of the nominated exchange. "(4) Notwithstanding anything in the Scheme, amounts that the Exchange becomes liable to pay under the Scheme shall be paid only out of available money. Exchange to take over main board listing agreements "36l. (1) In this section: 'listed body' means a body corporate, government, unincorporated body or other person; 'main board listing agreement' means an agreement: (a) that is or has been in force between the nominated exchange and a listed body; (b) that relates or related to the admission of the listed body to the official list of the nominated exchange; and (c) under or by virtue of which the listed body is or was under an obligation to comply with, observe, or give effect to, the Listing Requirements of AASE, as adopted as listing rules of the nominated exchange. "(2) After the relevant commencement, a main board listing agreement in force immediately before that commencement has effect, with such modifications as the circumstances require, as if the Exchange were substituted for the nominated exchange as a party to the agreement and, except in relation to a time before that commencement: (a) a reference in the provisions of the agreement to the nominated exchange were a reference to the Exchange; (b) a reference in the provisions of the agreement to the Listing Requirements of AASE, or to listing rules of the nominated exchange, were a reference to the listing rules of the Exchange; and (c) a reference in the provisions of the agreement to the official list of the nominated exchange were a reference to the official list of the Exchange. "(3) Where, immediately before the relevant commencement, proceedings: (a) to which the nominated exchange was a party; and (b) that arose out of, or were otherwise connected with, a main board listing agreement; were pending in a court or tribunal, the Exchange shall indemnify the nominated exchange in respect of all liabilities, expenses, costs or charges incurred by the nominated exchange: (c) as a party to the proceedings; (d) in complying with a judgment or other order given in the proceedings; or (e) otherwise in connection with the proceedings. Transfer of certain assets of nominated exchange "36m. (1) Within 3 months after the relevant commencement, the Commission shall, after consulting with the Exchange, determine in writing an amount for the purposes of this section. "(2) The Commission shall: (a) give to the Exchange and to the nominated exchange a copy of its determination under this section; and (b) cause a copy of the determination to be published in the Gazette; but failure by the Commission to comply with this subsection does not affect the validity of the determination. "(3) The nominated exchange shall, within 14 days after receiving the Commission's determination under this section, pay to the Exchange the amount specified in the determination. Transfer of Part VIII deposits held by nominated exchange "36n. (1) In this section: 'outstanding deposit', in relation to a relevant member, means a deposit that: (a) the relevant member lodged under Part VIII with the nominated exchange before the relevant commencement; and (b) the nominated exchange held, immediately before that commencement, on trust for the relevant member; 'relevant member' means a member organisation of the Exchange that was, immediately before the relevant commencement, a member organisation of the nominated exchange. "(2) An outstanding deposit in relation to a relevant member: (a) vests in the Exchange at the relevant commencement; and (b) as from that commencement, is held on trust by the Exchange for the relevant member as if the relevant member had lodged the deposit with the Exchange under Part VIII. "(3) Property in which an outstanding deposit in relation to a relevant member has, before the relevant commencement, been invested by the nominated exchange and that was held by the nominated exchange immediately before that commencement vests at that commencement in the Exchange. "(4) For the purposes of the application of Part VIII after the relevant commencement in relation to an outstanding deposit in relation to a relevant member, the relevant member shall be deemed to have lodged and maintained the deposit with the Exchange under that Part. How Parts VIII and IX apply in relation to a local Exchange subsidiary "36p. (1) Subsections (2) and (3) have effect throughout the period beginning at the relevant commencement and ending on the day on