95. Futures

(1) Subject to sub-paragraph (2), rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed on when the contract is made.
(2) There are excluded from sub-paragraph (1) rights under any contract which is made for commercial and not investment purposes.
(3) A contract is to be regarded as made for investment purposes if it is made or traded on a Recognised Investment Exchange, or is made otherwise than on a Recognised Investment Exchange but is expressed to be as traded on such an exchange or on the same terms as those on which an equivalent contract would be made on such an exchange.
(4) A contract not falling within sub-paragraph (3) is to be regarded as made for commercial purposes if under the terms of the contract delivery is to be made within seven days, unless it can be shown that there existed an understanding that (notwithstanding the express terms of the contract) delivery would not be made within seven days.
(5) The following are indications that a contract not falling within sub-paragraph (3) or (4) is made for commercial purposes and the absence of them is an indication that it is made for investment purposes —
(a) one or more of the parties is a producer of the commodity or other property, or uses it in his business;
(b) the seller delivers or intends to deliver the property or the purchaser takes or intends to take delivery of it.
(6) It is an indication that a contract is made for commercial purposes that the prices, the lot, the delivery date or other terms are determined by the parties for the purposes of the particular contract and not by reference (or not solely by reference) to regularly published prices, to standard lots or delivery dates or to standard terms.
(7) The following are indications that a contract is made for investment purposes —
(a) it is expressed to be as traded on an investment exchange;
(b) performance of the contract is ensured by an investment exchange or a clearing house;
(c) there are arrangements for the payment or provision of margin.
(8) For the purposes of sub-paragraph (1), a price is to be taken to be agreed on when a contract is made —
(a) notwithstanding that it is left to be determined by reference to the price at which a contract is to be entered into on a market or exchange or could be entered into at a time and place specified in the contract; or
(b) in a case where the contract is expressed to be by reference to a standard lot and quality, notwithstanding that provision is made for a variation in the price to take account of any variation in quantity or quality on delivery.