2018 No. 314
The Building Societies (Restricted Transactions) (Amendment to the Prohibition on Entering into Derivatives Transactions) Order 2018
Made
Coming into force
In accordance with section 9A(14) of the Building Societies Act 19861, a draft of this Order has been laid before Parliament and approved by a resolution of each House of Parliament.
The Treasury, in exercise of the powers conferred by section 9A(11) of the Building Societies Act 1986, makes the following Order.
Citation, commencement and interpretation1
1
This Order may be cited as the Building Societies (Restricted Transactions) (Amendment to the Prohibition on Entering into Derivatives Transactions) Order 2018.
2
This Order comes into force on 6th April 2018.
3
In this Order, “the Act” means the Building Societies Act 1986.
Amendment of section 9A of the Act
2
Subsection (4) of section 9A of the Act is amended as follows—
a
at the end of paragraph (b)(vi) omit “or”;
b
at the end of paragraph (c) insert “; or”;
c
after paragraph (c) insert—
d
it is entered into in order to comply with an obligation imposed by a recognised clearing house or an EEA central counterparty pursuant to Article 37 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories2.
3
Subsection (9) of section 9A of the Act is amended as follows—
a
after the definition of “derivative instrument” insert—
““EEA central counterparty” has the meaning given in section 285(1)(c) of the Financial Services and Markets Act 20003;” and
b
after the definition of “market maker” insert—
““recognised clearing house” has the meaning given in section 285(1)(b) of the Financial Services and Markets Act 2000;”.
(This note is not part of the Order)