Regulation 2 Interpretation

In these Regulations—

• F1“clearing member client contract” has the same meaning as in section 155 of the Companies Act 1989;

• “clearing participant” means a member of Eurex who as such is permitted by the Rules of Eurex to clear facility transactions and/or over the counter transactions;

• “client” means a person who gives instructions to a non-clearing firm for traded securities or options to be sold in a facility transaction or an over the counter transaction;

• “default rules” and “defaulting” have the same meaning as in section 188 of the Companies Act 1989;

• F2... “third country central counterparty” F3has the same meaning as in section 285 of the Financial Services and Markets Act 2000;

• “facility” means a recognised investment exchange within the meaning of sections 116(4)(b) and 117(3) of the Finance Act 1991;

• “facility transaction” means a transaction in traded securities or options that is made on or reported to a recognised investment exchange;

• “Eurex” means Eurex Clearing AG M1;

• “nominee” means, save in relation to a non-clearing firm or its client (regulation 4(3)(b) and (e)), a person whose business is or includes holding traded securities or options as a nominee for Eurex, or another prescribed recognised clearing house F4... F5 or prescribed third country central counterparty acting in its capacity as a person providing clearing services in connection with an over the counter transaction or a facility transaction, or as a nominee for a clearing participant;

• “non-clearing firm” means a person other than a clearing participant who has an agreement with a clearing participant to clear over the counter transactions or facility transactions or both;

• “option” means an option to buy or sell traded securities;

• “over the counter transaction” means a transaction in traded securities or options made other than on a recognised investment exchange”;

• “traded securities” means stocks and shares which are issued or raised by a body corporate but does not include stocks and shares issued or raised by a body corporate not incorporated in the United Kingdom unless—

  1. (a)

     the stocks and shares are registered in a register kept in the United Kingdom by or on behalf of the body corporate; or

  2. (b)

     in the case of shares, they are paired, within the meaning of section 99(6A) of the Finance Act 1986 M2, with shares issued by a body corporate incorporated in the United Kingdom.