TAXES Citation, commencement and effect 1 1 These Regulations may be cited as the Stamp Duty and Stamp Duty Reserve Tax (Investment Exchanges and Clearing Houses) (OM London Exchange Limited) Regulations 1999 and shall come into force on 29th December 1999. 2 These Regulations shall have effect– a as respects the charge to stamp duty, in relation to instruments executed on or after 29th December 1999; b as respects the charge to stamp duty reserve tax– i in the case of an agreement to transfer equity securities which is not conditional, where the agreement is made on or after 29th December 1999; ii in the case of an agreement to transfer equity securities which is conditional, where the condition is satisfied on or after that date. Interpretation 2 In these Regulations– “clearing member” means a member who is permitted by the rules of OM London Exchange Limited to clear transactions made on that exchange for an equity security; “equity securities” means stocks and shares which are issued or raised by a company but does not include stocks and shares issued by a company not incorporated in the United Kingdom unless– they are registered in a register kept in the United Kingdom by or on behalf of the company, or in the case of shares, they are paired, within the meaning of section 99(6A) of the Finance Act 1986 , with shares issued by a company incorporated in the United Kingdom; “member” means a member of OM London Exchange Limited who is recognised as such by the rules of that exchange; “non-clearing member” means a member other than a clearing member; “option” means an option to buy or sell securities which is listed by and traded on OM London Exchange Limited; “futures contract” means a futures, or a forward, contract conferring rights and obligations to buy or sell securities which is listed by and traded on OM London Exchange Limited. Prescription of recognised investment exchange 3 For the purposes of sections 116 and 117 of the Finance Act 1991 OM London Exchange Limited is a recognised investment exchange which is prescribed. Transfers and issues of securities to OM London Exchange Limited—prescribed circumstances 4 1 In the circumstances prescribed by paragraph (2), a charge to stamp duty or to stamp duty reserve tax shall be treated as not arising. 2 The circumstances prescribed are where, as a result of the exercise of options, or under futures contracts, equity securities of a particular kind are transferred or issued or agreed to be transferred or issued– a to OM London Exchange Limited; or b to a person whose business is or includes holding such securities as a nominee for OM London Exchange Limited. 3 References in this regulation and in regulation 5 to OM London Exchange Limited are references to that exchange in its capacity as a person providing clearing services in connection with a transaction made on that exchange. Transfer of securities to or from members of OM London Exchange Limited—prescribed circumstances 5 1 In the circumstances prescribed by paragraph (2), a charge to stamp duty or to stamp duty reserve tax shall be treated as not arising. 2 The circumstances prescribed are where, in order to meet an obligation to receive securities resulting from the exercise of options, or under futures contracts, equity securities of a particular kind are transferred or agreed to be transferred– a from a non-clearing member or a nominee of a non-clearing member to a clearing member or the nominee of a clearing member; or b from OM London Exchange Limited or a nominee of OM London Exchange Limited to a clearing member or a nominee of a clearing member. 3 In paragraph (2) references to a clearing member are references to a clearing member in his capacity as such. Bob Ainsworth Greg Pope Two of the Lords Commissioners of Her Majesty’s Treasury 7th December 1999