PART 3Transactions to be treated as entered into otherwise than in the course of a trade
Options and futures: further provisions37
1
For the purposes of regulations 35 and 36 references to an option or a future do not include reference to a contract the terms of which provide—
a
that, after setting off their obligations to each other under the contract, a cash payment is to be made by one party to the other in respect of the excess, if any, and do not provide for the delivery of any property,
b
that each party is liable to make to the other party a cash payment in respect of all that party’s obligations to the other under the contract and do not provide for the delivery of any property, or
c
for the delivery of any property other than property a transaction in which would fall within any of the regulations in this Part where the property is delivered.
2
Nothing in paragraph (1) has effect to exclude, from references to an option or a future, an option or future whose underlying subject matter is currency.
3
In paragraph (2) “underlying subject matter” means—
a
in relation to an option, the property which would fall to be delivered if the option were exercised, and
b
in relation to a future, the property which, if the future were to run to delivery, would fall to be delivered at the date and price agreed when the contract is made.