—(1) In this Act, unless the context otherwise requires and subject to subsection (2) —
“foreign exchange trading” means the act of entering into or offering to enter into, or inducing or attempting to induce a person to enter into or offer to enter into, a contract or an arrangement whereby a person undertakes to exchange currency at an agreed rate of exchange with another person whether the currency exchange is effected at the same time or at a future date and whether by way of delivery of an amount of currency for another currency, by way of crediting the account of the other person with an amount of another currency, by way of settlement or set-off between 2 or more persons or otherwise;
“leveraged foreign exchange trading” means —
the act of entering into or offering to enter into, or inducing or attempting to induce a person to enter into or offer to enter into, a contract or an arrangement on a margin basis (other than a contract or an arrangement that is made on a Futures Exchange or a futures market) whereby a person undertakes as determined by the terms and conditions of the contract or arrangement —
to make an adjustment between himself and another person according to whether a currency is worth more or less, as the case may be, in relation to another currency;
to pay an amount of money determined or to be determined by reference to the change in value of a currency in relation to another currency; or
to deliver to another person at an agreed future time an agreed amount of currency at an agreed price;
the provision by any person referred to in paragraph (a) of any advance, credit facility or loan, directly or indirectly, to facilitate an act of the description referred to in that paragraph; or
(2) For the purposes of the definitions of “foreign exchange trading” and “leveraged foreign exchange trading” in subsection (1) —
the definitions shall not include any act performed for or in connection with a contract or an arrangement or a proposed contract or proposed arrangement —
by any person belonging to such class of persons, or carrying on such class or description of business as may be prescribed by the Authority; or
which falls within the definition of “futures contract” in section 2; and
“on a margin basis” means the first-mentioned person referred to in the definition of “leveraged foreign exchange trading” entering into the contract or arrangement referred to therein by providing to the offeror or his agent with money, securities, property or other collateral which represents only a part of the value of the contract or arrangement to be entered into by him.
(3) The Authority may by order modify the definition of “foreign exchange trading” or “leveraged foreign exchange trading” by applying it to such other financial instrument or unit of account as may be prescribed and such order may provide for any necessary modification or adaptation to that definition.