Global Exposure Global exposure is a measure designed to limit either the incremental exposure and leverage generated by a UCITS through the use of financial derivative instruments (including embedded derivatives) or the market risk of the UCITS portfolio. Other UCITS...
Event Risk Event risk is the risk that the value of a financial instrument changes in an abrupt or sudden way when compared with the behavior of the general market and in a way that goes well beyond the normal range of fluctuations in value. Other UCITS...
CSSF The Commission de Surveillance du Secteur Financier (CSSF) is responsible for the prudential supervision of credit institutions, professionals of the financial sector (investment firms, specialized PFS, support PFS), undertakings for collective investment,...
ESMA ESMA’s (European Securities and Markets Authority) mission is to enhance the protection of investors and reinforce stable and well functioning financial markets in the European Union. As an independent institution ESMA achieves this mission by building the single...
Commitment Approach The UCITS IV regulation provides two approaches to regulatory risk management of a fund’s portfolio: the commitment approach and the Value at Risk (VaR) approach. In the commitment approach, the net exposure of derivatives cannot exceed 100% of the...
