# Companies Act 1985, Paragraph 76A: Financial instruments

Extent: E+W+S

References to “derivatives” include commodity-based contracts that give either contracting party the right to settle in cash or in some other financial instrument, except when such contracts–
(a) were entered into for the purpose of, and continue to meet, the company’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.

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Source: https://www.legislation.gov.uk/ukpga/1985/6/schedule/4/paragraph/76A (the official version)
Page: https://openlegislation.uk/companies-act-1985/schedule-4/paragraph-76A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.