CHAPTER V U.K. COVERED SOVEREIGN CREDIT DEFAULT SWAPS PURSUANT TO ARTICLE 4(2)

Article 16 U.K. Justification of uncovered sovereign credit default swap positions

Any natural or legal person entering into a sovereign credit default swap position shall, on the request of the [F1 FCA]:

(a)

justify to [F2 the FCA] which of the cases set out in Article 15 were fulfilled at the time the position was entered into;

(b)

demonstrate to [F2 the FCA] compliance with the correlation test in Article 18 and the proportionality requirements in Article 19 in respect of that sovereign credit default swap position at any time that they hold that sovereign credit default swap.

Textual Amendments

F1 Words in Art. 16 substituted (31.12.2020) by The Short Selling (Amendment) (EU Exit) Regulations 2018 (revoked) 2018 (S.I. 2018/1321), regs. 1(2), 15(7)(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Art. 16(a)(b) substituted (31.12.2020) by The Short Selling (Amendment) (EU Exit) Regulations 2018 (revoked) 2018 (S.I. 2018/1321), regs. 1(2), 15(7)(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)