
1 
These Regulations may be cited as the Financial Markets and Insolvency Regulations 1998 and shall come into force on 11th August 1998.
2 
In these Regulations “the Act” means the Companies Act 1989.
3 
Section 155(2) of the Act shall be amended as follows—
(a) In subsection (2)(a) the words “with a person other than the exchange” shall be inserted after the word “exchange” where it first appears.
(b) Subsection (2)(b) shall be replaced by the following—“
(b) contracts entered into by the exchange with its members for the purpose of enabling the rights and liabilities of that member under transactions in investments to be settled.”
4 
Section 155(3) shall be replaced by the following—“
(3) In relation to a recognised clearing house, this Part applies to contracts entered into by the clearing house with a member of the clearing house for the purpose of enabling the rights and liabilities of that member under transactions in investments to be settled.”
5 

(1) In paragraph 1(4) of Schedule 21 to the Act, the words “entered into by the exchange for the purposes of or in connection with the provision of its own clearing services” shall be replaced by the words “falling within section 155(2)(b) above”.
(2) In paragraph 1(5) of Schedule 21 to the Act, the words “other contracts” shall be replaced by the words “contracts falling within section 155(2)(a) above”.
6 
Paragraph 7 of Schedule 21 to the Act shall be replaced by the following—“
(7) Where the exchange provides clearing services, paragraph 14 below applies in respect of any margined transactions effected by or on behalf of the exchange as it applies in relation to a clearing house.”
Graham Allen
Bob Ainsworth
Two of the Lord’s Commissioners of Her Majesty’s Treasury
14th July 1998Nigel Griffiths
Parliamentary Under Secretary of State for Competition and Consumer Affairs,
Department of Trade and Industry
18th July 1998