Amendments to article 85 of the Order: contracts for differences9
1
Article 85 of the Order16 (contracts for differences etc.) is amended as follows.
2
In paragraph (4)—
a
omit “or” at the end of sub-paragraph (b);
b
in sub-paragraph (c), for “paragraph 8” substitute “paragraph 8 or 9”;
c
after sub-paragraph (c) insert—
, or
d
an AIFM is providing, in accordance with Article 6.4 of the alternative investment fund managers directive the investment service specified in paragraph 1, 4 or 5 of Section A, or the ancillary service specified in paragraph 1 of Section B, of Annex I to the markets in financial instruments directive.
3
After paragraph (4) insert—
4A
Subject to paragraph (4B), a derivative contract of a binary or other fixed outcomes nature—
a
to which paragraph (1) does not apply;
b
which is settled in cash; and
c
which is a financial instrument to which paragraph 4, 5, 6, 7 or 10 of Section C of Annex I to the markets in financial instruments directive read with Articles 5 to 8 and 10 of the Commission Regulation (the texts of which are set out in Parts 1 and 2 of Schedule 2) applies.
4B
Paragraph (4A) only applies to derivatives in relation to which—
a
an investment firm or credit institution is providing or performing investment services and activities on a professional basis,
b
a management company is providing, in accordance with Article 6.3 of the UCITS directive, the investment service specified in paragraph 4 or 5 of Section A, or the ancillary service specified in paragraph 1 of Section B, of Annex I to the markets in financial instruments directive,
c
a market operator is providing the investment service specified in paragraph 8 or 9 of Section A of Annex I to the markets in financial instruments directive,
d
an AIFM is providing, in accordance with Article 6.4 of the alternative investment fund managers directive the investment service specified in paragraph 1, 4 or 5 of Section A, or the ancillary service specified in paragraph 1 of Section B, of Annex I to the markets in financial instruments directive, or
e
a person is carrying on the activity specified by article 25(2).