| SECOND SCHEDULE |
| Regulation 2(1) |
| Prescribed qualifying structured commodity financing activities |
1. The following activities which relate to structured commodity financing:
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| 2. For the purposes of qualifying as a prescribed qualifying structured commodity financing activity under paragraph 1(j), an approved global trading company’s transaction in derivatives must be carried out to hedge against its own risks relating to any of the activities mentioned in paragraph 1(a) to (i). |
| 3. To avoid doubt, to qualify as a prescribed qualifying structured commodity financing activity under paragraph 1(k), an approved global trading company is not required to perform any of the activities mentioned in paragraph 1(a) to (i) relating to the advisory services it provides. |