MKT 6.2.15 MKT 6.2.15 Restrictions on transactions with Stabilisation Agents
(1) A Stabilisation Manager must not during the Stabilisation Window enter into a transaction as principal with any of his Stabilisation Agents in the Relevant Securities which are the subject of Price Stabilisation(2) The requirement in (1) does not apply:(a) if at the time of the transaction, neither the Stabilisation Manager nor his Stabilisation Agent knew or could reasonably have known the identity of his counterparty; or(b) where the transaction between the Stabilisation Manager and his Stabilisation Agent is undertaken solely for the purpose of reallocating the risk of positions that were taken by the Stabilisation Manager and his Stabilisation Agent in the course of Price Stabilisation and the transaction is priced accordingly.
Some participants in the Price Stabilisation may have accrued positions during stabilisation and Rule 6.2.15 permits transactions to ‘square-off’ the positions between participants. The terms on which these transactions may be carried may often be agreed in the terms of engagement between the Stabilisation Manager and his Stabilisation Agents. The FSRA may when inspecting records kept relating to stabilisation seek the rationale for any of these transactions and the price at which they were conducted.