ERSM20190 - Employment-related securities and options: contracts for differences
The definition of security includes rights under contracts for differences or contracts similar to contracts for differences (other than contracts of insurance) (see ITEPA03/S420 (1)(g)).
Per ITEPA03/S420 (4), a contract similar to a contract for differences is a contract
- which is not a contract for differences, but
- the purpose or pretended purpose of which is to secure a profit or avoid a loss by reference to fluctuations in the value or price of property or an index or other factor designated in the contract.