Past version: effective from 01/09/2005 - 13/07/2013
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(1) In GEN Rule 2.2.2
Operating an Alternative Trading System means making arrangements with a view to another Person whether as principal or agent buying or selling an Investment by way of operating a facility:
(a) which is organised on a temporary or permanent basis, whether or not governed by enforceable rules;
(b) which provides a means by which over the counter (OTC) trading of
Investments can take place; and
(c) which provides a system or mechanism, whether an order driven system, a quote driven system or a hybrid of such systems, which enables electronic trading or trading by other means and through which;
(i) offers to buy or sell
Investments are made or accepted;
(ii) buyers and sellers can negotiate the purchase or sale of
(iii) contracts can be entered into for the transfer of ownership of or the title to
(iv) the prices of
Investments, price movements and price and size of the most recent trades are displayed and updated.
(2) For the purposes of (1), “OTC” means in relation to a transaction in an
Investment, a transaction not effected on an Exchange or its equivalent in any other jurisdiction.
(3) In (1), a facility is not an
Alternative Trading System if it is merely an order routeing system where buying and selling interests or orders are merely transmitted but do not interact.
(4) In (1) a
Person providing the facility still operates an Alternative Trading System even though that Person may from time to time deal as agent for another Person or deal as principal with another Person using the facility.
(5) For the purposes of (1) a
Person operates an Alternative Trading System even though the facility itself is provided by a third party on behalf of that Person and that Person merely provides use of that facility to other Persons.