Article 24 Insertion of new article 55A (VRTS credits: conversion of unused CRTS allowances by a VRTS participant which is also a CRTS participant)

After article 55 insert—

“VRTS credits: conversion of unused CRTS allowances by a VRTS participant which is also a CRTS participant

55A

(1)

During a trading window, a VRTS participant which is also a CRTS participant may acquire one VRTS credit in exchange for two and a half unused CRTS allowances by making a request to the administrator if—

(a)

the participant’s number of units of activity in the CRTS in a scheme year does not exceed the sum of—

(i)

the number of CRTS allowances which were allocated to the participant in accordance with article 13 for that year;

(ii)

the number of any CRTS allowances which were banked by the participant in accordance with article 14 and were available for it to use at the beginning of the trading window; and

(iii)

the number of any CRTS credits which were acquired by the participant in accordance with article 23 (conversion of unused CCTS allowances into CRTS credits) and are available for it to use;

(b)

the participant has more CRTS allowances than it requires in order to comply with article 27 (accounting for activity in the CRTS) for that scheme year (referred to in this article as “unused CRTS allowances”); and

(c)

the participant did not acquire the unused CRTS allowances in accordance with article 15 (borrowing CRTS allowances).

(2)

A request under paragraph (1)—

(a)

must be made during the trading window following the scheme year for which the participant intends to surrender the VRTS credits to which the request relates;

(b)

may be for the exchange of a part of a CRTS allowance but may not be for the exchange of a part which is smaller than one tenth of a CRTS allowance.

(3)

A VRTS credit acquired in accordance with this article may not be traded under article 57.”.