[F1131CShort selling rules: definitions etcU.K.
(1)This section supplements section 131B.
(2)The cases in which a person (“S”) engages in short selling in relation to a financial instrument (a “shorted instrument”) include any case where—
(a)S enters into a transaction which creates, or relates to, another financial instrument; and
(b)the effect (or one of the effects) of the transaction is to confer a financial advantage on S in the event of a decrease in the price or value of the shorted instrument.
(3)“Financial instrument” has the meaning given by Article 4.1(17) of the markets in financial instruments directive.
(4)“Relevant financial instrument” means a financial instrument that—
(a)is admitted to trading on a regulated market or on any other prescribed market in an EEA State; or
(b)has such other connection with a market in an EEA State as may be specified.
(5)“Specified” means specified by short selling rules.
(6)“UK financial instrument” means a financial instrument that is admitted to trading on a market in the United Kingdom.
(7)In the case of a financial instrument that is admitted to trading on—
(a)a market in the United Kingdom or another EEA State, and
(b)one or more markets in a country or territory, or countries or territories, anywhere else in the world,
short selling rules may apply in relation to trading on both or all markets.
(8)In any case where—
(a)a financial instrument (“instrument A”) is admitted to trading on a market in the United Kingdom or another EEA State,
(b)another financial instrument (“instrument B”) is admitted to trading on one or more markets in a country or territory, or countries or territories, anywhere else in the world, and
(c)the price or value of instrument A depends on the price or value of instrument B (or vice versa),
short selling rules may apply in relation to trading on both or all markets.
(9)In subsection (4)(a) “regulated market” has the meaning given by Article 4.1(14) of the markets in financial instruments directive.
(10)References in this section to a market in a country or territory are to a market situated or operating in the country or territory.]
Textual Amendments
F1Pt. 8A inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 8, 26(2)(b)