2BCSpecific things that are not financial products—certain tradeable water rights

#### 2BC Specific things that are not financial products—certain tradeable water rights (1) For paragraph 12BAA(8)(p) of the Act, each of the following is not a financial product: (a) tradeable water rights; (b) an arrangement: (i) under which a person (the seller) has, or may have, an obligation to sell tradeable water rights at a future date; and (ii) under which another person (the buyer) has, or may have, an obligation to buy the tradeable water rights, or replacement water rights, at a future date; and (iii) that does not permit the seller’s obligations to be wholly settled by cash, or by set‑off between the seller and the buyer, rather than by transfer of ownership of the tradeable water rights or replacement water rights; and (iv) in relation to which neither usual market practice, nor the rules of a licensed market or of a licensed CS facility, allow the seller’s obligations to be closed out by matching up the arrangement with another arrangement of the same kind under which the seller has offsetting obligations to buy the tradeable water rights or replacement water rights. (2) In subregulation (1): > replacement water rights means tradeable water rights that are granted, issued or authorised as a replacement for the seller’s tradeable water rights, including as a result of transformation arrangements mentioned in subsection 97(1) of the Water Act 2007. > tradeable water rights has the same meaning as in the Water Act 2007.