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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

synthetic future

      1. (a) a synthetic bought future, that is, a bought call option coupled with a written put option; or
      1. (b) a synthetic sold future, that is, a bought put option coupled with a written call option;provided that in either case the two options:
        1. (i) are bought and written, whether simultaneously or not, on a single eligible derivatives market;
        1. (ii) relate to the same underlying security or other asset;
        1. (iii) give the purchasers of the options the same rights of exercise (whether at the same price or not); and
        1. (iv) will expire together, if not exercised.5