financial instrument

(1) (other than in (2) and (3)) those instruments specified in Part 1 of Schedule 2 to the Regulated Activities Order, that is in summary:
1. (a) transferable securities;
2. (b) money-market instruments;
3. (c) units in collective investment undertakings;
4. (d) options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, emission allowances, or other derivative instruments, financial indices or financial measures which may be settled physically or in cash;
5. (da) (in relation to derivative contracts relating to a currency) has the meaning in paragraph 3 of Part 2 of Schedule 2 to the Regulated Activities Order, (in summary) an instrument which is not:
  1. (i) a contract within the meaning of paragraph 3(2); or
  2. (ii) a means of payment as described in paragraph 3(1)(b);
6. (e) options, futures, swaps, forwards and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of a default or other termination event;
7. (f) options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market, a UK MTF or a UK OTF, except for wholesale energy products traded on a UK OTF that must be physically settled (having regard to paragraph 4 of Part 2 of Schedule 2 to the Regulated Activities Order);
8. (g) options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in (f) and:
  1. (i) not being for commercial purposes or wholesale energy products traded on an EU OTF that must be physically settled, having regard to paragraph 6 of Part 2 of Schedule 2 to the Regulated Activities Order;
  2. (ii) which have the characteristics of other derivative financial instruments having regard to paragraph 5 of Part 2 of Schedule 2 to the Regulated Activities Order; and
  3. (iii) not being spot contracts having regard to paragraph 5 of Part 2 of Schedule 2 to the Regulated Activities Order;
9. (h) derivative instruments for the transfer of credit risk;
10. (i) financial contracts for differences; and
11. (j) options, futures, swaps, forward rate agreements and any other derivative contracts relating to:
  1. (i) climatic variables;
  2. (ii) freight rates;
  3. (iii) emission allowances;
  4. (iv) inflation rates or other official economic statistics;
  5. (v) telecommunications bandwidth;
  6. (vi) commodity storage capacity;
  7. (vii) transmission or transportation capacity relating to commodities, whether cable, pipeline or other means;
  8. (viii) an allowance, credit, permit, right or similar asset which is directly linked to the supply, distribution or consumption of energy derived from renewable resources;
  9. (ix) a geological, environmental or other physical variable;
  10. (x) any other asset or right of a fungible nature, other than a right to receive a service, that is capable of being transferred;
  11. (xi) an index or measure related to the price or value of, or volume of transactions in any asset, right, service or obligation;
  12. (xii) a derivative contract to which paragraph 7 of Part 2 of Schedule 2 to the Regulated Activities Order applies;
  where the conditions in paragraph 8 of Part 2 of Schedule 2 to the Regulated Activities Order are met; [Note: article 44(1)(15) and section C of Annex I to MiFID]
12. (k) emission allowances consisting of any units recognised for compliance with the Emission Allowance Trading Directive and emission allowances created under article 18 of the trading scheme order 2020;
(2) in MAR 1 and MAR 2, DTR 1, 2 and 3 and otherwise where used in relation to the Market Abuse Regulation, as defined in article 3(1)(1) of the Market Abuse Regulation.
(3) [deleted]
(4) [deleted]