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.