Template:Spot contract definition: Difference between revisions

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+By way of explaining why it is out of scope for {{t|MiFID 2}}, a [[spot contract]] is defined in Art. 10(2) of [https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32017R0565 Commission Delegated Regulation (EU) 2017/565] as
-A [[spot contract]] is defined in Art. 10(2) of [https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32017R0565 Commission Delegated Regulation (EU) 2017/565] as
+:''A [[spot contract]] for the purposes of paragraph 1 shall be a contract for the exchange of one [[currency]] against another [[currency]], under the terms of which delivery is scheduled to be made within the longer of the following periods:''<br>
-{{box|
+::''(a) 2 trading days in respect of any pair of the [[major currencies]] set out in paragraph 3;''<br>
-.   A [[spot contract]] for the purposes of paragraph 1 shall be a contract for the exchange of one currency against another currency, under the terms of which delivery is scheduled to be made within the longer of the following periods:
+::''(b) for any pair of currencies where at least one currency is not a major currency, the longer of 2 trading days or the period generally accepted in the market for that currency pair as the standard delivery period;''<br>
+::''(c) where the contract for the exchange of those currencies is used for the main purpose of the sale or purchase of a transferable security or a unit in a collective investment undertaking, the period generally accepted in the market for the settlement of that transferable security or a unit in a collective investment undertaking as the standard delivery period or 5 trading days, whichever is shorter.''<br>
+:''A contract shall not be considered a spot contract where, irrespective of its explicit terms, there is an understanding between the parties to the contract that delivery of the currency is to be postponed and not to be performed within the period set out in the first subparagraph.''<br>
-(a) 2 trading days in respect of any pair of the major currencies set out in paragraph 3;
+Per Art 10(3), the “[[major currencies]]” are restricted to {{major currencies}}.
-(b) for any pair of currencies where at least one currency is not a major currency, the longer of 2 trading days or the period generally accepted in the market for that currency pair as the standard delivery period;
+Per Art 10(4), a [[trading day]] means any day of normal trading in the jurisdiction of both currencies to be exchanged and that of any third currency through which those currencies are converting for the purposes of liquidity and where the standard delivery period for the exchange of those currencies references that third currency’s jurisdiction.
-(c) where the contract for the exchange of those currencies is used for the main purpose of the sale or purchase of a transferable security or a unit in a collective investment undertaking, the period generally accepted in the market for the settlement of that transferable security or a unit in a collective investment undertaking as the standard delivery period or 5 trading days, whichever is shorter.
-A contract shall not be considered a spot contract where, irrespective of its explicit terms, there is an understanding between the parties to the contract that delivery of the currency is to be postponed and not to be performed within the period set out in the first subparagraph.
-.   The major currencies for the purposes of paragraph 2 shall only include the US dollar, Euro, Japanese yen, Pound sterling, Australian dollar, Swiss franc, Canadian dollar, Hong Kong dollar, Swedish krona, New Zealand dollar, Singapore dollar, Norwegian krone, Mexican peso, Croatian kuna, Bulgarian lev, Czech koruna, Danish krone, Hungarian forint, Polish złoty and Romanian leu.
-. For the purposes of paragraph 2, a trading day shall mean any day of normal trading in the jurisdiction of both the currencies that are exchanged pursuant to the contract for the exchange of those currencies and in the jurisdiction of a third currency where any of the following conditions are met:
-(a) the exchange of those currencies involves converting them through that third currency for the purposes of liquidity;
-(b) the standard delivery period for the exchange of those currencies references the jurisdiction of that third currency.
-}}