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  1. Point in time
    2005-06-30

MAR 2.5 Pricing

LIMIT ON PRICING: GENERAL

MAR 2.5.1 R RP

The principal purpose of this section is to put an upper limit on the price at which certain securities may be stabilised.

MAR 2.5.2 R RP

The price limits are broadly similar whether the stabilising action is concerned with relevant securities or associated securities (including call options). However, the price limits do not extend to debt securities in the form of bonds, etc, or investments similar to debt securities such as convertibles or exchangeables. Pricing for them is subject instead to the requirement in MAR 2.2.3 R that the stabilising action is taken to support the market price.1

MAR 2.5.3 G

The initial stabilising price (Price X) cannot exceed the offer price (or starting price) (Price Y), and subsequent stabilising action must equally be at or below the level of Price X. If there are no sales and purchases which are independent of the stabilising manager on both sides on the relevant exchange above Price X, the stabilising manager can operate at a price or at prices below Price X, moving up or down in that area as he wishes. But if an independent buyer and seller do a deal on the relevant exchange, at a price (Price Z) between Price X and Price Y, then the stabilising manager has a new maximum price (Price Z) instead of Price X.

MAXIMUM PRICES

MAR 2.5.4 R
  1. (1)

    No bid may be made or transaction effected in the case of action described in MAR 2.2.3 R at a price higher than any relevant price indicated in accordance with MAR 2.5.5 R (including any relevant note in MAR 2.5.6 R).

  2. (2)

    The prohibition in (1) does not apply to the purchase of, the agreement to purchase, or an offer or attempt to purchase or to agree to purchase, investments that fall within:

    1. (a)

      article 77 or 78 of the Regulated Activities Order (bonds, etc); or

    2. (b)

      article 77 or 78 and also fall within articles 79 (instruments giving entitlements to investments), 80 (certificates representing certain securities) or 83 (options); or

    3. (c)

      article 79 or 80 that confer rights in respect of investments falling within article 77 or 78.1

MAR 2.5.5 R

Limits on pricing (see MAR 2.5.4 R (1))

Time of Action

Column A

Column B

Column C

Relevant securities (including associated securities which are in all respects uniform with them)

Associated securities (other than associated call options) excluding those in column A

Associated call options

(1) Initial stabilising action

The offer price

The market bid price of the associated securities at the beginning of the stabilising period

The market price of an option at the beginning of the stabilising period

(2) Later, but where there has been a deal at a price above the stabilising price on the relevant exchange

The offer price, or the price at which that deal was done, whichever is the lower

The market bid price in B(1), or the price at which that deal in the associated securities was done, whichever is the lower

The market price in C(1), or the price at which that deal in an option was done, whichever is the lower

(3) Later, but where there has been no deal in (2)

The offer price, or the initialstabilising price, whichever is the lower

The market bid price in B(1), or the initial stabilising price for the associated securities, whichever is the lower

The market price in C(1), or the initial stabilising price of the option, whichever is the lower
MAR 2.5.6 R

Pricing notes (see MAR 2.5.5 R)

(1) Deals done. For the purposes of MAR 2.5.5 R (2), a deal done by or on the instructions of the stabilising manager does not count.

(2) Relevant Exchange. For the purposes of MAR 2.3.2 R (2) , MAR 2.5.5 R (2) and MAR 2.5.6 R , the relevant exchange means the investment exchange which the stabilising manager reasonably believes to be the principal investment exchange on which those securities, or as the case may be options, are dealt in at the time of the transaction.

(3) (Deleted). 1

(4) References in column B of MAR 2.5.5 R to associated securities do not include call options.

(5) Currency fluctuations. Where the price of any relevant securities or associated securities on the relevant exchange is in a currency other than the currency of the price of the securities to be stabilised, stabilising bids may be made or transactions effected at a price that reflects any change in the relevant rate of exchange; but this does not permit stabilising action, in column A of MAR 2.5.5 R, at a price above the equivalent, in the other currency, of the offer price in the currency on the relevant exchange.

(6) New securities: Where there is no market bid price for any associated securities (including associated call options) at the beginning of the stabilising period because those securities or options are not in existence or capable of being traded at that time, MAR 2.5.5 R shall be read as if references to the market bid price of theassociated securities or options at the beginning of the stabilising period were a reference to the first market bid price of the associated securities or options during thestabilising period of which the stabilising manager is, or reasonably should be, aware.