(1) In Article 3, in paragraph 2 -

(a) for "trading venue" substitute "UK trading venue";

(b) after "CSD" insert "or third-country CSD" each time it occurs;

(c) omit "as defined in point (a) of Article 2(1) of Directive 2002/47/EC".

(2) In Article 4 -

(a) omit paragraph 1;

(b) for paragraphs 2 and 3 substitute -

"2. The competent authority shall ensure that the first sub-paragraph of Article 3(2) of this Regulation is applied where transferable securities are admitted to trading or traded on UK trading venues.

3. The competent authority shall ensure that the second sub-paragraph of Article 3(2) of this Regulation is applied where transferable securities admitted to trading or traded on UK trading venues are transferred following a financial collateral arrangement.".