Prescribed circumstances for the purposes of sections 116 and 117
4.—(1) In the circumstances prescribed in this regulation, a charge to stamp duty or stamp duty reserve tax shall be treated as not arising.
(2) The circumstances prescribed are where, in connection with a transaction made on the facility, conditions A and B are met.
(3) Condition A is that traded securities of a particular kind are issued or transferred, or agreed to be issued or transferred, from—
(a)a clearing participant or a nominee of a clearing participant to another clearing participant or nominee,
(b)a non-clearing firm or its client to a clearing participant or a nominee of a clearing participant,
(c)a clearing participant or a nominee of a clearing participant to EMCF, X-CLEAR or LCH, or to a nominee of any of those clearing houses,
(d)a person other than a clearing participant to EMCF, X-CLEAR or LCH, or to a nominee of any of those clearing houses, as a result of a failure by a clearing participant to fulfil his obligations in respect of transferring those securities to EMCF, X-CLEAR or LCH, or to a nominee of any of those clearing houses,
(e)X-CLEAR, EMCF or LCH, or a nominee of any of those clearing houses, to a clearing participant or a nominee of a clearing participant,
(f)X-CLEAR or a nominee of that clearing house to EMCF or LCH or a nominee of either clearing house,
(g)EMCF or a nominee of that clearing house to X-CLEAR or LCH or a nominee of either clearing house, or
(h)LCH or a nominee of that clearing house to X-CLEAR or EMCF or a nominee of either clearing house.
(4) Condition B is that the person to whom those securities are agreed to be transferred under any of the agreements specified in paragraph (3) (“the relevant agreement”) is required on receipt of those securities to transfer traded securities under a matching agreement to another person or, in the case of an agreement falling within paragraph (3)(d), would have been so required if the failure referred to in that paragraph had not occurred.
(5) In this regulation—
(a)a “matching agreement” means an agreement under which—
(i)the traded securities agreed to be transferred are of the same kind as the traded securities agreed to be transferred under the relevant agreement, and
(ii)the number and transfer price of the traded securities agreed to be transferred are identical to the number and transfer price of the traded securities agreed to be transferred under the relevant agreement;
(b)references to X-CLEAR, EMCF or LCH are references to that clearing house in its capacity as a person providing clearing services in connection with a transaction made on the facility;
(c)references to a clearing participant are references to a clearing participant in its capacity as such.