# The Building Societies (Accounts and Related Provisions) Regulations 1998, Paragraph 12A: Financial instruments


References to “derivative financial instruments” are deemed to include commodity-based contracts that give either contracting party the right to settle in cash or some other financial instrument, except where such contracts—
(a) were entered into and continue in order to meet the society’s expected purchase, sale or usage requirements;
(b) were designated for such purpose at their inception; and
(c) are expected to be settled by delivery of the commodity.

---
Source: https://www.legislation.gov.uk/uksi/1998/504/schedule/11/paragraph/12A (the official version)
Page: https://openlegislation.uk/building-societies-accounts-and-related-provisions-regulations-1998/schedule-11/paragraph-12A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.