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GEN A2.3.1

For the purposes of GEN Rule A2.1.3:

Options

(a) An Option is an instrument that confers on the holder, upon exercise, rights of the kind referred to in any of the following:
(i) a right to acquire or dispose of:
(A) a Security (other than a Warrant) or contractually based investment;
(B) currency of any country or territory;
(C) a commodity of any kind;
(ii) a right to receive a cash settlement, the value of which is determined by reference to:
(A) the value or price of an index, interest rate or exchange rate; or
(B) any other rate or variable; or
(iii) a right to acquire or dispose of another Option under (i) or (ii).

Futures

(b) a Future is an instrument comprising rights under a contract:
(i) for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed on when the contract is made and that contract:
(A) is made or traded on a regulated exchange;
(B) is made or traded on terms that are similar to those made or traded on a regulated exchange; or
(C) would, on reasonable grounds, be regarded as made for investment and not for commercial purposes; or
(ii) where the value of the contract is ultimately determined by reference, wholly or in part, to fluctuations in:
(A) the value or price of property of any description; or
(B) an index, interest rate, exchange rate, any combination of these, or other factor designated for that purpose in the contract; and
which is wholly settled by cash or set-off between the parties but excludes:
(C) rights under a contract where one or more of the parties takes delivery of any property to which the contract relates;
(D) a contract under which money is received by way of deposit or an acknowledgement of a debt on terms that any return to be paid on the sum deposited or received will be calculated by reference to an index, interest rate, exchange rate or any combination of these or other factors; or
(E) a Contract of Insurance.
[Added] DFSA RM62/2008 (Made 4th January 2009). [VER22/01-09]