HL Deb 23 July 1986 vol 479 cc289-90

LISTED MONEY MARKET INSTITUTIONS

PART I

TRANSACTIONS BY LISTED INSTITUTIONS WITH OTHER LISTED INSTITUTIONS OR THE BANK OF ENGLAND

1.—(1) This Part of this Schedule applies to any transaction between a listed institution and another such institution or the Bank of England in respect of any investment specified in sub-paragraph (2) below if—

  1. (a) in the case of an investment within any of paragraphs (a) to (d) of that sub-paragraph, the transaction is not regulated by the rules of a recognised investment exchange; and
  2. (b) in the case of any other investment specified in that sub-paragraph, the transaction is not made on such an exchange or expressed to be as so made.

(2) The investments referred to above are—

  1. (a) a debenture or other instrument falling within paragraph 2 of Schedule 1 to this Act which is issued—
    1. (i) by a recognised bank or licensed institution within the meaning of the Banking Act 1979 or a building society incorporated in, or in any part of, the United Kingdom; and
    2. (ii) on terms requiring repayment not later than five years from the date of issue;
  2. (b) any other debenture or instrument falling within paragraph 2 of Schedule 1 to this Act which is issued on terms requiring repayment not later than one year from the date of issue;
  3. (c)loan stock, or any other instrument, falling within paragraph 3 of Schedule 1 to this Act which is issued on terms requiring repayment not later than one year or, if issued by a local authority in the United Kingdom, five years from the date of issue;
  4. (d) any certificate or other instrument falling within paragraph 5 or 11 of Schedule 1 to this Act and relating to an investment within paragraph (a), (b) or (c) above;
  5. (e) an option falling within paragraph 7 of Schedule 1 to this Act and relating to—
    1. (i) an investment within paragraph (a), (b) or (c) above;
    2. (ii) currency of the United Kingdom or of any other country or territory; or
    3. (iii) gold or silver,
  6. (f) rights under a contract falling within paragraph 8 of Schedule 1 to this Act for the sale of—
    1. (i) an investment within paragraph (a), (b) or (c) above;
    2. (ii) currency of the United Kingdom or of any other country or territory; or
    3. (iii) gold or silver,
  7. (g) rights under a contract falling within paragraph 9 of Schedule 1 to this Act by reference to fluctuations in—
    1. (i) the value or price of any investment falling within any of the foregoing paragraphs; or
    2. (ii) currency of the United Kingdom or of any other country or territory; or
    3. (iii) the rate of interest on loans in any such currency or any index of such rates.

2.—(1) This Part of this Schedule also applies to any transaction between a listed institution and another such institution or the Bank of England by which one of the parties agrees to sell or transfer an investment falling within paragraph 2 or 3 of Schedule 1 to this Act if by the same or a collateral agreement that party agrees, or acquires an option, to buy back or re-acquire that investment or an equivalent amount of a similar investment within twelve months of the sale or transfer.

(2) For the purposes of this paragraph investments shall be regarded as similar if they entitle their holders to the same right; against the same persons as to capital and interest and the same remedies for the enforcement of those rights.

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