chapter
Warrants
Pages 5

The fifth category of ‘securities’ is entitled ‘options’. It relates to any options to acquire or dispose of any security falling within any other paragraph of Schedule 2 to the Criminal Justice Act 1993.71 For ‘options’ to be ‘securities’ for the purposes of the Criminal Justice Act 1993, they will need to satisfy the listing requirement referred to above.72 Alternatively, the option will need to relate to any share or debt security which satisfies the listing requirement73 or to any depository receipt which satisfies the listing requirement or relates to shares or debt securities which satisfy that requirement.74 The legislative intention behind these provisions was to ensure that ‘... all derivatives of shares and debt securities that are themselves covered by the legislation are also within the ambit of the legislation. This means that it will apply to, for example, exchange-traded and over-the-counter options in a listed company’s shares. It is important that the legislation does that to close off an avenue which could otherwise be exploited by the unscrupulous.’75