Statutory Instruments
1998 No. 1748
FINANCIAL SERVICES
The Financial Markets and Insolvency Regulations 1998
Made
18th July 1998
Laid before Parliament
20th July 1998
Coming into force
11th August 1998
The Treasury in exercise of the powers vested in them under section 155 of the Companies Act 1989( 1 ) and the Treasury and the Secretary of State, in the exercise of the powers vested in them jointly under sections 185 and 186 of that Act and of all other powers enabling them in that behalf hereby make the following Regulations—
Citation and commencement
1. These Regulations may be cited as the Financial Markets and Insolvency Regulations 1998 and shall come into force on 11th August 1998.
Interpretation of the Regulations
2. In these Regulations “the Act” means the Companies Act 1989.
Definition of market contracts
3. Section 155(2)( 2 ) of the Act shall be amended as follows—
(a) In subsection (2)(a) the words “with a person other than the exchange” shall be inserted after the word “exchange” where it first appears.
(b) Subsection (2)(b) shall be replaced by the following—
“ (b) contracts entered into by the exchange with its members for the purpose of enabling the rights and liabilities of that member under transactions in investments to be settled. ”
4. Section 155(3) shall be replaced by the following—
“ (3) In relation to a recognised clearing house, this Part applies to contracts entered into by the clearing house with a member of the clearing house for the purpose of enabling the rights and liabilities of that member under transactions in investments to be settled. ”
Amendments to Schedule 21 to the Act
5. —(1) In paragraph 1(4) of Schedule 21 to the Act, the words “entered into by the exchange for the purposes of or in connection with the provision of its own clearing services” shall be replaced by the words “falling within section 155(2)(b) above”.
(2) In paragraph 1(5) of Schedule 21 to the Act, the words “other contracts” shall be replaced by the words “contracts falling within section 155(2)(a) above”.
6. Paragraph 7 of Schedule 21 to the Act shall be replaced by the following—
“ (7) Where the exchange provides clearing services, paragraph 14 below applies in respect of any margined transactions effected by or on behalf of the exchange as it applies in relation to a clearing house. ”
Graham Allen
Bob Ainsworth
Two of the Lord’s Commissioners of Her Majesty’s Treasury
14th July 1998
Nigel Griffiths
Parliamentary Under Secretary of State for Competition and Consumer Affairs,
Department of Trade and Industry
18th July 1998
1989 c. 40 . The powers originally vested in the Secretary of State under section 155 are now vested in the Treasury and the powers under section 185 and 186 of the Companies Act 1989 are now exercisable by him jointly with the Treasury—see the Transfer of Functions (Financial Services) Order 1992 ( S.I. 1992/1315 ).
Section 155(2) was substituted by regulation 3 of the Financial Markets and Insolvency Regulations 1991 ( S.I. 1991/880 ).