3. For subsection (2) of section 155 of the Act (market contracts)substitute—
“(2) Except as provided in subsection (2A), in relation to a recognisedinvestment exchange this Part applies to—
(a)contracts entered into by a member or designated non-member of theexchange which are either
(i)contracts made on the exchange or on an exchange to whoseundertaking the exchange has succeeded whether by amalgamation, mergeror otherwise; or
(ii)contracts in the making of which the member or designated non-member was subject to the rules of the exchange or of an exchange towhose undertaking the exchange has succeeded whether by amalgama- tion,merger or otherwise; and
(b)contracts subject to the rules of the exchange entered into by theexchange for the purposes of or in connection with the provision ofclearing services.
A“designated non-member” means a person in respect of whom action may be taken under thedefault rules of the exchange but who is not a member of the exchange.
(2A) This Part does not apply to contracts falling within paragraph (a)of subsection (2) above where the exchange in question is a recognisedoverseas investment exchange.”.