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16.—(1) In this regulation“relevant transaction” means—
(a)a market contract effected as principal by a member or designatednon-member of a recognised investment exchange or a member of arecognised clearing house being a market contract—
(i)which is an investment falling within paragraph 7, 8 or 9 ofSchedule 1 to the Financial Services Act 1986(1) or falling within paragraph 11 of that Schedule insofaras that paragraph is relevant to any of those paragraphs; and
(ii)in relation to which money received by the member or designated non-member is client money for the purposes of the Financial Services(Clients' Money) Regulations 1987(2) or would be client money for the purposes of thoseregulations were it not money which, in accordance with thoseregulations, may be regarded as immediately due and payable to themember or designated non-member for his own account; and
(b)a market contract which would be regarded as a relevant transactionby virtue of sub-paragraph (a) above were it not for the fact that nomoney is received by the member or designated non-member in relation tothe contract.
(2) For the purposes of subsection (1) of section 187 of the Act(construction of references to parties to market contracts) a member ordesignated non-member of a recognised investment exchange or a member ofa recognised clearing house shall be treated as effecting relevanttransactions in a different capacity from other market contracts he haseffected as principal.
Regulations made by the Securities and Investments Boardunder section 55 of the Financial Services Act 1986 and issued (withamendments) in the Board’s release No. 54. The regulations have beenfurther modified, in an irrelevant respect, by the Financial Services(Clients' Money) (Amendment) Regulations 1990 issued in the Board'srelease No. 85.