PART III SPECIFIED INVESTMENTS

Options83

F21

Options to acquire or dispose of—

a

a security or contractually based investment (other than one of a kind specified by this article);

b

currency of the United Kingdom or any other country or territory;

c

palladium, platinum, gold or silver; F3...

d

an option to acquire or dispose of an investment of the kind specified by this article by virtue of paragraph (a), (b) or (c)F4;

e

subject to paragraph (4), an option to acquire or dispose of an option to which F8paragraph 5, 6, 7 or 10 of Part 1 of Schedule 2 (read with Articles 5, 6, 7, and 8 of the Commission Regulation) applies.

F12

Subject to paragraph (4), options—

a

to which paragraph (1) does not apply;

b

which relate to commodities;

c

which may be settled physically; and

d

either—

i

to which paragraph 5 or 6 of F10... Part 1 of Schedule 2 F5(read with Articles 5 and 6 of the Commission Regulation), applies, or

ii

which in accordance with Article F67 of the Commission Regulation (the text of which is set out in Part 2 of Schedule 2) are to be considered as having the characteristics of other derivative financial instruments and not being for commercial purposes, and to which paragraph 7 of F11Part 1 of that Schedule applies.

3

Subject to paragraph (4), options—

a

to which paragraph (1) does not apply;

b

which may be settled physically; and

c

to which paragraph 10 of F12Part 1 of Schedule 2 (read with F7Articles 7 and 8 of the Commission Regulation) applies.

4

Paragraphs (1)(e), (2) and (3) only apply to options in relation to which—

F13a

an investment firm or qualifying credit institution is providing or performing investment services and activities on a professional basis,

b

a management company which has a Part 4A permission to do so is providing the investment service specified in paragraph 4 or 5 of Part 3 of Schedule 2 or the ancillary service specified in paragraph 1 of Part 3A of that Schedule,

c

a market operator is providing the investment service specified in paragraph 8 or 9 of Part 3 of that Schedule, or

d

a full-scope UK AIFM which has a Part 4A permission to do so is providing the investment service specified in paragraph 1, 4 or 5 of Part 3 of that Schedule or the ancillary service specified in paragraph 1 of Part 3A of that Schedule.

F95

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