SAIM7050 - Artificial transactions in futures and options: when do disposals involve 바카라 사이트˜guaranteed returns바카라 사이트™? (this guidance applies to disposals of futures and options before 6 April 2013)
Conditions for disposals involving guaranteed returns
ITTOIA05/S559 specifies three conditions that must be met for the disposal to involve a guaranteed return.
바카라 사이트˜Related transactions바카라 사이트™
Condition A is that the disposal must be one of two or more 바카라 사이트˜related transactions바카라 사이트™.
ITTOIA05/S566 explains what is meant by related transactions. Transactions are related if all of them are entered into in pursuance of the same 바카라 사이트˜scheme or arrangement바카라 사이트™. This means any case where it would be reasonable to assume that none of them would have been entered into separately, having regard to the likely effect of the transactions and the circumstances in which they were entered into.
Related transactions include transactions between different parties, who may be different to the parties who entered into the scheme.
바카라 사이트˜Scheme or arrangement바카라 사이트™ includes 바카라 사이트˜understandings of any kind, whether or not they are legally enforceable바카라 사이트™.
바카라 사이트˜Designed to produce a guaranteed return바카라 사이트™
Condition B is that those transactions must be designed to produce a guaranteed return.
ITTOIA05/S559 (5) explains what is meant by 바카라 사이트˜designed to produce a guaranteed return바카라 사이트™. Considering the transactions together the likely effect of the transactions and the circumstances in which they were entered into, it must be reasonable to assume that the main purpose or one of the main purposes is to produce a guaranteed return from one or more disposal of futures or options.
바카라 사이트˜Guaranteed return바카라 사이트™ is defined in ITTOIA05/S560 (SAIM7060).
The return from one or more disposals
Condition C is that the guaranteed return comprises the return from the disposal, or the return from a number of disposals, of which the disposal is one, taken together (see SAIM7070).
바카라 사이트˜Entering into a transaction바카라 사이트™ includes making the disposal.