(1) Section 75 of the Principal Act is amended -

(a) in subsection (1) by inserting the following before the definition of "excluded business":

 "' competent authority ' has the meaning assigned to it by the Directive;

' Directive ' means Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments, as amended from time to time;",

and

(b) by inserting the following after subsection (2):

 "(2A) For the purposes of subsection (2), a transfer of securities shall be deemed to be effected on an exchange or market, where the transfer of securities gives effect to a transaction that is required by a competent authority, in accordance with the Directive, to be reported directly or indirectly to the competent authority and is so reported in accordance with that requirement.".

(2) This section applies to instruments executed on or after 1 November 2007.