HC Deb 17 July 1986 vol 101 cc1216-7

`(1) Section 86 above shall not apply as regards an agreement to transfer securities if the agreement is made by B in the ordinary course of his business as a market maker in securities of the kind concerned. (2) Section 86 above shall not apply as regards an agreement to transfer securities to B or his nominee if—

  1. (a) the agreement is made by B as principal in the ordinary course of his business as a broker and dealer in relation to securities of the kind concerned and
  2. (b) before the end of the period of 7 days beginning with the day on which the agreement is made or (in a case where the agreement is conditional) the day on which the condition is satisfied, B enters into an unconditional agreement to sell the securities to another person.
(3) For the purposes of this section, a person is a market maker in securities of a particular kind if he—
  1. (a) holds himself out at all normal times in compliance with the rules of the Stock Exchange as willing to buy and sell securities of that kind at a price specified by him, and
  2. (b) is recognised as doing, so by the Council of the Stock Exchange.
 (4) For the purposes of this section, a person is a broker and dealer in relation to securities of a particular kind if he is a member of the Stock Exchange who carries on his business in the United Kingdom and is not a market maker in securities of that kind. (5) The Treasury may by regulations provide that for subsection (3) above (as it has effect for the time being) there shall be substituted a subsection containing a different definition of a market maker for the purposes of this section. (6) The Treasury may by regulations provide that for subsection (4) above (as it has effect for the time being) there shall be substituted a subsection containing a different definition of a broker and dealer for the purposes of this section. (7) For the purposes of subsection (2) above, if the securities which B sells cannot be identified (apart from this subsection) securities shall be taken as follows—
  1. (a) securities of the same kind acquired in the period of 7 days ending with the day of the sale (and not taken for the purposes of a previous sale by B) shall be takenbefore securities of that kind acquired outside that period;
  2. (b) securities of that kind acquired earlier in that period (and not taken for the purposes of a previous sale by B) shall be taken before securities of that kind acquired later in that period.
 (8) For the purposes of subsection (7) above—
  1. (a) securities are acquired when B enters into an agreement for them to be transferred to 13 or his nominee or (in a case where the agreement is conditional) when the condition is satisfied;
  2. (b) B sells securities when he enters into an unconditional agreement to sell them to another person.
 (9) The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.'.— [Mr. Ian Stewart.]

Brought up, read the First and Second time, and added to the Bill.

Forward to