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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.

in the money

      1. (1) (in LR) (in relation to 115 securitised derivatives 115 ):52
        1. (a) where the holder has the right to buy the underlying instrument or instruments from the issuer, when the settlement price is greater than the exercise price; or52
        1. (b) where the holder has the right to sell the underlying instrument or instruments to the issuer, when the exercise price is greater than the settlement price;52
      1. (2) (for the purposes of BIPRU 7 (Market risk) and in relation to an option or warrant) the strike price of that option or warrant being less than the current market value of the underlying instrument (in the case of a call option or warrant) or vice versa (for a put option).52