CTA09/S573

Trading and non-trading credits and debits

Trading derivative contracts

A company will have a trading derivative contract if it entered or acquired the derivative contract for the purposes of its trade (CTA09/S573(1)).

A bank or financial trader that sells or deals in derivatives will enter into or acquire such derivative contracts for trade purposes. But equally a company that uses a derivative for purposes that are ancillary to trading operations will satisfy the requirement. Examples are:

a manufacturer using a commodity derivative to hedge raw material prices;

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.