F1Part 8AShort selling
Short selling rules
131CShort selling rules: definitions etc
1
This section supplements section 131B.
2
The cases in which a person (“S”) engages in short selling in relation to a financial instrument (a “shorted instrument”) include any case where—
a
S enters into a transaction which creates, or relates to, another financial instrument; and
b
the effect (or one of the effects) of the transaction is to confer a financial advantage on S in the event of a decrease in the price or value of the shorted instrument.
3
“Financial instrument” has the meaning given by Article 4.1(17) of the markets in financial instruments directive.
4
“Relevant financial instrument” means a financial instrument that—
a
is admitted to trading on a regulated market or on any other prescribed market in an EEA State; or
b
has such other connection with a market in an EEA State as may be specified.
5
“Specified” means specified by short selling rules.
6
“UK financial instrument” means a financial instrument that is admitted to trading on a market in the United Kingdom.
7
In the case of a financial instrument that is admitted to trading on—
a
a market in the United Kingdom or another EEA State, and
b
one or more markets in a country or territory, or countries or territories, anywhere else in the world,
short selling rules may apply in relation to trading on both or all markets.
8
In any case where—
a
a financial instrument (“instrument A”) is admitted to trading on a market in the United Kingdom or another EEA State,
b
another financial instrument (“instrument B”) is admitted to trading on one or more markets in a country or territory, or countries or territories, anywhere else in the world, and
c
the price or value of instrument A depends on the price or value of instrument B (or vice versa),
short selling rules may apply in relation to trading on both or all markets.
9
In subsection (4)(a) “regulated market” has the meaning given by Article 4.1(14) of the markets in financial instruments directive.
10
References in this section to a market in a country or territory are to a market situated or operating in the country or territory.
Pt. 8A inserted (8.6.2010) by Financial Services Act 2010 (c. 28), ss. 8, 26(2)(b)