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ARTICLE · 21 NOVEMBER 2011

UCITS Investment In Financial Derivative Instruments

Dillon Eustace
Dillon Eustace
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UCITS may invest in financial derivative instruments for investment purposes subject to a variety of conditions as outlined below relating to the nature of the exposures taken, the leverage generated through such positions, the process employed by the UCITS to manage the risks arising from derivatives investment as well as rules relating to OTC counterparty exposure and to the valuation of derivatives positions.

IrelandFinance and Banking
Dillon Eustace
Dillon Eustace
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UCITS may invest in financial derivative instruments for investment purposes subject to a variety of conditions as outlined below relating to the nature of the exposures taken, the leverage generated through such positions, the process employed by the UCITS to manage the risks arising from derivatives investment as well as rules relating to OTC counterparty exposure and to the valuation of derivatives positions.

The Central Bank has prescribed in detail through its UCITS Notices and Guidance Notes the risk management conditions that must be met by Irish UCITS investing in derivatives.

UCITS are permitted to invest in exchange traded or over-the-counter derivative instruments for investment purposes, subject to certain conditions, in particular, those set down in:

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