The Short Selling (Amendment) (EU Exit) Regulations 2018
| Jurisdiction | UK Non-devolved |
| Citation | SI 2018/1321 |
| Year | 2018 |
(1) These Regulations may be cited as the Short Selling (Amendment) (EU Exit) Regulations 2018.(2) These Regulations come into force on exit day.(1) The Financial Services and Markets Act 2000 in subsection (2) , at the end insert “ or to respond to a request referred to in subsection (5A) ” ;in the opening words, for “functions under the short selling regulation” substitute “ relevant functions ” ;for paragraph (a) , substitute—“ the authority making the request under subsection (1) (“the requesting regulator”) ” ;in subsection (5) , for “EEA” substitute “ requesting ” ;in the heading, for “EEA” substitute “ overseas ” .for “EEA” substitute “ overseas ” ;for “its functions under the short selling regulation” substitute “ relevant functions ” ;omit subsection (11) ;in subsection (12) , for the definition of “EEA regulator” substitute—
Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14th March 2012 on short selling and certain aspects of credit default swaps (“ in point (a) , for “Union” substitute “ United Kingdom ” ;in point (b) and (c) , for “Section C of Annex 1 to Directive 2004/39/EC” substitute “ Part 1 of Schedule 2 to the Regulated Activities Order 2001 ” ;(2) In Article 1.1(c) , for “a Member State or the Union” both times it occurs, substitute “ the United Kingdom ” .(1) Article 2 is amended as follows.in point (a) , for “Section C of Annex I to Directive 2004/39/EC” substitute “ Part 1 of Schedule 2 to the Regulated Activities Order 2001 ” ;for point (d) , substitute—“ point (ka) ” ;”after “Article 17(2) ” insert “ as it had effect before F8IP completion day, or by the Treasury in accordance with that paragraph as amended, ” ;after point (k) , insert—“Treasury may by regulations specify” ;for “in particular specifying” substitute “and in particular specify” .
- (a) an overseas regulator, or
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“(6) In this section—
- “overseas regulator” means—
- (a) the competent authority of an EEA State for the purposes of the short selling regulation, as that regulation has effect in the European Union (the “EU short selling regulation”) ; or
- (b) the authority of a third country which is not an EEA State which exercises functions corresponding to those of a competent authority under the EU short selling regulation;
- “relevant functions” means—
- (a) in relation to a competent authority of an EEA State, its functions under the EU short selling regulation;
- (b) in relation to ESMA, its functions under the EU short selling regulation;
- (c) in relation to an authority of a third country which is not an EEA state, its functions corresponding to the functions referred to in paragraph (a) ;
- “specified” means specified in the notice.
- “overseas regulator” means—
- “overseas regulator” means—
- (a) the competent authority of an EEA State for the purposes of the short selling regulation, as that regulation has effect in the European Union (the “EU short selling regulation”) ; or
- (b) the authority of a third country which is not an EEA State which exercises functions corresponding to those of a competent authority under the EU short selling regulation;
- “relevant functions” means—
- (a) in relation to a competent authority of an EEA State, its functions under the EU short selling regulation;
- (b) in relation to ESMA, its functions under the EU short selling regulation;
- (c) in relation to an authority of a third country which is not an EEA state, its functions corresponding to the functions referred to in paragraph (a) ;
- “specified” means specified in the notice.
- “(6A) Where the FCA is exercising its powers under section 131E in response to a request from an overseas regulator or ESMA, references to the short selling regulation are to be read as including the EU short selling regulation, within the meaning of section 131E(6) .
- “(1) The FCA may appoint one or more competent persons to investigate any matter if it is requested to do so by—
- (a) the competent authority of an EEA state acting in the exercise of its functions under the short selling regulation, as that regulation has effect in the European Union; or
- (b) an authority of a third country which is not an EEA state which is acting in the exercise of functions corresponding to those referred to in paragraph (a) .
- “overseas regulator” and “relevant functions” have the meanings given in section 131E(6) ;
- “sovereign issuer” means the United Kingdom, including any government department, or an agency or a special purpose vehicle of the United Kingdom;
- (ka) for the purposes of point (k) , the firms referred to in this point are firms which provide investment services and/or perform investment activities consisting exclusively in dealing on own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets or which deal for the accounts of other members of those markets or make prices for them and which are guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such firms is assumed by clearing members of the same markets;
- “trading venue” means—
- (i) a UK regulated market within the meaning of point (13B) of Article 2(1) of Regulation (EU) No 600/2014 ;
- (ii) a UK multilateral trading facility within the meaning of point (14A) of Article 2(1) of Regulation (EU) No 600/2014;
- (p) “trading day” in relation to a trading venue, means a day during which the trading venue concerned is open for trading;
- (q) “turnover”, in relation to a financial instrument, means the sum of the results of multiplying the number of units of that instrument exchanged between buyers and sellers in a defined period of time, pursuant to transactions taking place on a trading venue or otherwise, by the unit price applicable to each transaction;
- (r) “FCA” means the Financial Conduct Authority;
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(s) “competent authority” means—
(i) in relation to the United Kingdom, the FCA; (ii) in relation to a Member State of the European Union, the authority which has been designated by that Member State as its competent authority for the purposes of Article 32 of this Regulation as it was in force immediately before F9IP completion day; and (iii) in relation to a third country which is not a Member State of the European Union, the supervisory authority which exercises functions equivalent to those exercised by competent authorities in Member States under this Regulation as it was in force immediately before F9IP completion day; - (t) “credit institution” has the meaning given in Article 2(1) (17) of Regulation (EU) No 600/2014;
- (u) “investment firm” has the meaning given in Article 2(1A) of Regulation (EU) No 600/2014;
- (v) references to a “third country” (including in expressions including the words “third country”) are to be read as references to a country other than the United Kingdom;
- (w) “Regulated Activities Order 2001” means the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ;
- (x) “PRA” means the Prudential Regulation Authority
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