Schedule 3, Part 1 Directive functions transferred to the Treasury (paras. 1-18)
1. To clarify, for the purposes of section 327(4) of FSMA and of the Regulated Activities Order, when an activity is provided in an incidental manner [The powers in this paragraph are transferred from Article 2(3) of the Markets in Financial Instruments Directive ("Directive 2014/65/EU").].
2. To specify -
(a) the derivative contracts referred to in paragraph 6 of Part 1 of Schedule 2 to the Regulated Activities Order that have the characteristics of wholesale energy products that must be physically settled and energy derivative contracts referred to in that paragraph;
(b) the derivative contracts referred to in paragraph 7 of Part 1 of Schedule 2 to the Regulated Activities Order that have the characteristics of other derivative financial instruments;