PART 2 AMENDMENTS OF THE PRINCIPAL ORDER

Amendments of the principal Order
28. In article 85 (contracts for differences etc.) after paragraph (2) insert—

“(3) Subject to paragraph (4), derivative instruments for the transfer of credit risk—
(a) to which neither article 83 nor paragraph (1) applies; and
(b) to which paragraph 8 of Section C of Annex I to the markets in financial instruments directive applies.
(4) Paragraph (3) only applies to derivatives in relation to which—
(a) an investment firm or credit institution is providing or performing investment services and activities on a professional basis,
(b) a management company is providing, in accordance with Article 5(3) of the UCITS directive, the investment service specified in paragraph 4 or 5 of Section A, or the ancillary service specified in paragraph 1 of Section B, of Annex I to the markets in financial instruments directive, or
(c) a market operator is providing the investment service specified in paragraph 8 of Section A of Annex I to the markets in financial instruments directive.
(5) ”Derivative instruments for the transfer of credit risk” has the same meaning as in the markets in financial instruments directive.”.