Regulation 8 Meaning of the Maxlong limit and the Maxshort limit

making the following calculation in respect of each relevant expiry month and each designated account—

$$\mathrm{D}-\mathrm{E}$$

where D is the number of equities which he is likely to deliver, and E is the number of equities which he is likely to receive, on the exercise of options expiring within that month, on the assumption that—

1. (i)

   the market price of the equities is at a figure which having regard to paragraphs (ii) and (iii) would produce the maximum figure resulting from that calculation,

2. (ii)

   such options as give the holder the right to buy such equities at a price above that market price, or to sell such equities at a price below that market price, are not exercised, and

3. (iii)

   such options as give the holder the right to buy such equities at a price equal to or below that market price, or to sell such securities at a price equal to or above that market price, are exercised;

where the amount calculated by reference to sub-paragraph (a) is a negative amount, treating that amount as zero; and

aggregating the amounts so calculated in respect of all relevant expiry months and designated accounts.

making the following calculation in respect of each relevant expiry month and each designated account—

$$\mathrm{F}-\mathrm{G}$$

where F is the number of equities which he is likely to receive, and G is the number of equities which he is likely to deliver, on the exercise of options expiring within that month, on the assumption specified in paragraphs (i) to (iii) of sub-paragraph (a) of paragraph (1) above; and

b

proceeding as specified in sub-paragraphs (b) and (c) of paragraph (1).