Companies Act 1989

9 (1) The charges to which paragraphs 10 to 12 apply are charges, whether fixed or floating, granted—

(a) in favour of a recognised investment exchange, for the purpose of securing debts or liabilities arising in connection with the settlement of market contracts,

(b) in favour of a recognised clearing house, for the purpose of securing debts or liabilities arising in connection with their ensuring the performance of market contracts, or

(c) in favour of a person who agrees to make payments as a result of the transfer of specified securities made through the medium of a computer-based system established by the Bank of England and The Stock Exchange, for the purpose of securing debts or liabilities of the transferee arising in connection with the payments.

Those charges are referred to in this Schedule as “market charges”.

(2) Where a charge is granted partly for purposes specified in sub-paragraph (1)(a), (b) or (c) and partly for other purposes, paragraphs 10 to 12 apply to it so far as it has effect for the specified purposes; and the expression “market charge” shall be construed accordingly.

(3) In this paragraph and paragraphs 10 to 12—

• “charge” means any form of security, including a mortgage and, in Scotland, a heritable security; and

• “specified securities” means securities for the time being specified in the list in Schedule 1 to the [1982 c. 41.] Stock Transfer Act 1982, and includes any right to such securities.