Set-off and netting: meaning of “derivative”, “financial contract” and “qualifying master agreement”5
1
In this Order “derivative” means a derivative as defined in Article 2(5) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4th July 2012 on OTC derivatives, central counterparties and trade repositories9.
2
In this Order “financial contract” means any or any combination of the following (other than a derivative)—
a
a contract for the purchase, sale, transfer or loan of a transferable security, a group of transferable securities or index of transferable securities;
b
a repurchase or reverse repurchase transaction on any transferable security, group of transferable securities or index of transferable securities;
c
a commodities contract of a financial nature, including—
i
a contract for the purchase, sale, transfer or loan of a commodity, a group of commodities or an index of commodities for future delivery;
ii
a swap or option on a commodity, a group of commodities or an index of commodities;
iii
a repurchase or reverse repurchase transaction on any such commodity, group or index;
d
a futures contract, including a contract (other than a commodities contract) for the purchase, sale or transfer of property of any description under which delivery is to be made at a future date and at a price agreed when the contract is made.
3
In article 4 “qualifying master agreement” means a master agreement in so far as it relates to—
a
a derivative,
b
a financial contract, or
c
a contract for the sale, purchase or delivery of the currency of the United Kingdom or any other country, territory or monetary union.