The Financial Markets and Insolvency Regulations 1991

Further provision as to market contracts

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.”.