{
  "url": "https://openlegislation.uk/draft-financial-services-and-markets-act-2000-excluded-activities-and-prohibitions-order-2014/article-10",
  "json_url": "https://openlegislation.uk/draft-financial-services-and-markets-act-2000-excluded-activities-and-prohibitions-order-2014/article-10.json",
  "legislation": "ukdsi/2014/9780111117101",
  "legislation_title": "The Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014",
  "legislation_url": "https://openlegislation.uk/draft-financial-services-and-markets-act-2000-excluded-activities-and-prohibitions-order-2014",
  "path": "article/10",
  "kind": "article",
  "number": "10",
  "heading": "Derivatives: forward contracts and swaps",
  "text": "(1) The requirements listed in this article are that the transaction is—\n(a) a currency swap,\n(b) an interest rate swap, or\n(c) a forward contract relating to currencies or commodities, where the relevant contract specifies—\n(i) the description and amount of the currency or commodity concerned;\n(ii) the date when delivery will be made or when settlement will be made in cash; and\n(iii) the exchange rate or commodity price which will apply.\n(2) For the purposes of this article—\n(a) “currency swap” means a transaction under which—\n(i) one person (“A”) agrees with another person (“B”) that A will at a specified date pay to B a specified amount in one specified currency, and B will pay A that amount in another specified currency, calculated by reference to a specified exchange rate, and\n(ii) the amount concerned may consist of a specified principal amount and interest calculated at a specified fixed or floating rate;\n(b) “forward contract” means a contract for the sale of a commodity, currency or property of any description (including futures, whether or not traded on an exchange or trading venue) under which delivery is to be made at a future date and at a price agreed on when the contract is made;\n(c) “interest rate swap” means a transaction under which—\n(i) one person (“A”) agrees with another person (“B”) that A is liable to pay to B an amount equal to interest calculated by reference to an interest rate on a specified notional sum over a specified period, and that B is liable to pay to A an amount equal to interest calculated by reference to a different interest rate on that notional sum, and\n(ii) the interest rates in question are either specified (in the case of a fixed interest rate), or determined in relation to a specified reference rate (in the case of a floating interest rate);\n(d) “reference rate” means a foreign exchange or interest rate which is offered on an inter-bank market, or which is set out in an index published by any person who is not one of the parties to the contract;\n(e) “specified” means specified in the transaction agreement.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2014/9780111117101/article/10",
    "retrieved_at": "2026-10-30T15:12:39.977757+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}