Regulation 4 Prescribed persons and circumstances for the purposes of sub-paragraph (ii)

(1)

For the purposes of sub-paragraph (ii) and in the circumstances prescribed by paragraph (2) below—

(a)

Tradepoint is a recognised investment exchange which is prescribed, and

(b)

in relation to that exchange, a member in relation to Tradepoint who is a clearing participant is prescribed as a class or description of member of that exchange.

(2)

The circumstances prescribed are where—

(a)

a manufactured dividend is paid in respect of United Kingdom equities by the member in his capacity as a clearing participant, and

(b)

the United Kingdom equities in question were purchased by the member in that capacity—

(i)

from a person in circumstances where the member is required to sell United Kingdom equities under a matching transaction to The London Clearing House Limited, or

(ii)

from The London Clearing House Limited in circumstances where he is required to sell United Kingdom equities under a matching transaction to another person.

(3)

In paragraph (2) above “matching transaction” means a transaction under which—

(a)

the United Kingdom equities to be sold by the member are of the same kind as the United Kingdom equities purchased by him, and

(b)

the number and price of the United Kingdom equities to be sold by the member are identical to the number and price of the United Kingdom equities purchased by him.