1. For the purposes of Section C(4) of Annex I to Directive 2014/65/EU, other derivative contracts relating to a currency shall not be a financial instrument where the contract is one of the following:
(a) a spot contract within the meaning of paragraph 2 of this Article,
(b) a means of payment that:
(i) must be settled physically otherwise than by reason of a default or other termination event;
(ii) is entered into by at least a person which is not a financial counterparty within the meaning of Article 2(8) of Regulation (EU) No 648/2012 of the European Parliament and of the Council [Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1).];
(iii) is entered into in order to facilitate payment for identifiable goods, services or direct investment; and
(iv) is not traded on a trading venue.
2. A spot contract for the purposes of paragraph 1 shall be a contract
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