(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 -