Options and futures: further provisions
37.—(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.