(1) The requirements listed in this paragraph are that -
(a) the transaction is an option exercisable by a customer ("X") of the ring-fenced body requiring the ring-fenced body to buy or sell foreign currency or commodities, and
(b) the contract in which the option is granted specifies -
(i) the currency or commodity concerned;
(ii) the amount of currency or commodity which may be bought or sold under the option;
(iii) a single date on which the option may be exercised (which must be no later than 3 years from the date on which the contract is entered into); and
(iv) the exchange rate or commodity price which will apply to the transaction.
(2) The requirements listed in this paragraph are that -
(a) the transaction consists of a cap or floor (or both) under which -
(i) in respect of a cap, the ring-fenced body must pay X an amount equal to A minus B (provided that amount is a positive number), where "A" is the interest payable in relation to a specified notional amount at the int
…