The Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) (Over the Counter) Regulations 2010

Interpretation

2.  In these Regulations—

“clearing participant” means a member of LCH.Clearnet Limited who as such is permitted by the Rules of LCH.Clearnet Limited to clear transactions made over the counter for a traded security;

“client” means a person who gives instructions to a non-clearing firm for traded securities to be sold or transferred over the counter;

“nominee” means a person whose business is or includes holding traded securities as a nominee for LCH.Clearnet Limited acting in its capacity as a person providing clearing services in connection with a transaction made over the counter, or as a nominee for a clearing participant, non-clearing firm or client;

“non-clearing firm” means any person who uses a clearing participant for the purpose of clearing over the counter transactions in traded securities through LCH.Clearnet Limited;

“over the counter” means a transaction in traded securities made other than on a recognised investment exchange(1);

“traded securities” means stocks and shares which are issued or raised by a body corporate but does not include stocks and shares issued or raised by a body corporate not incorporated in the United Kingdom unless—

(a)

the stocks and shares are registered in a register kept in the United Kingdom by or on behalf of the body corporate; or

(b)

in the case of shares, they are paired, within the meaning of section 99(6A) of the Finance Act 1986(2), with shares issued by a body corporate incorporated in the United Kingdom.

(1)

A recognised investment exchange is an investment exchange within the meaning of sections 116(4)(b) and 117(3) of the Finance Act 1991

(2)

1986 c. 41. Section 99(6A) was inserted by section 144 of the Finance Act 1988 (c. 39), and was amended by section 113(2) of the Finance Act 1990 (c. 29).