Article 9 Amendments to article 85 of the Order: contracts for differences

Article 85 of the Order^f1 (contracts for differences etc.) is amended as follows.

In paragraph (4)—

After paragraph (4) insert—

“(4A)

Subject to paragraph (4B), a derivative contract of a binary or other fixed outcomes nature—

(a)

to which paragraph (1) does not apply;

(b)

which is settled in cash; and

(c)

which is a financial instrument to which paragraph 4, 5, 6, 7 or 10 of Section C of Annex I to the markets in financial instruments directive read with Articles 5 to 8 and 10 of the Commission Regulation (the texts of which are set out in Parts 1 and 2 of Schedule 2) applies.

(4B)

Paragraph (4A) only applies to derivatives in relation to which—

(a)

an investment firm or credit institution is providing or performing investment services and activities on a professional basis,

(b)

a management company is providing, in accordance with Article 6.3 of the UCITS directive, the investment service specified in paragraph 4 or 5 of Section A, or the ancillary service specified in paragraph 1 of Section B, of Annex I to the markets in financial instruments directive,

(c)

a market operator is providing the investment service specified in paragraph 8 or 9 of Section A of Annex I to the markets in financial instruments directive,

(d)

an AIFM is providing, in accordance with Article 6.4 of the alternative investment fund managers directive the investment service specified in paragraph 1, 4 or 5 of Section A, or the ancillary service specified in paragraph 1 of Section B, of Annex I to the markets in financial instruments directive, or

(e)

a person is carrying on the activity specified by article 25(2).”.