Derivative Financial Instruments. Any and all material swaps, caps, floors, futures, forward contracts, option agreements (other than stock options issued to the Company’s employees, directors, agents or consultants) and other derivative financial instruments, contracts or arrangements, whether entered into for the account of the Company or one of its subsidiaries or for the account of a customer of the Company or one of its subsidiaries, were entered into in the ordinary course of business and in accordance with applicable laws, rules, regulations and policies of all applicable regulatory agencies and with counterparties believed by the Company to be financially responsible at the time. The Company and each of its subsidiaries have duly performed in all material respects all of their obligations thereunder to the extent that such obligations to perform have accrued, and there are no breaches, violations or defaults or allegations or assertions of such by any party thereunder which would, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
Derivative Financial Instruments. For the UCITS, the management company can use derivatives for hedging, efficient portfolio management, to achieve additional returns and as part of the investment strategy. This can increase the risk of loss for the UCITS at least temporarily. The risk associated with derivatives financial instruments cannot exceed 100% of the net fund assets. The overall risk cannot exceed 200% of the net fund assets. The overall risk for borrowing permitted in accordance with UCITS (paragraph 7.4.2) cannot exceed 210% of the net fund assets. The management company applies the commitment approach as a risk management procedure. The following basic forms of derivatives or combinations of these derivatives or combinations of other assets that can be acquired for the UCITS, can be employed in the UCITS by the management company:
7.5.2.1 Futures contracts on securities, money market instruments, financial indices within the meaning of Article 1 Section 9 of Directive 2007/16/EC, interest rates, foreign exchange rates or currencies;
7.5.2.2 Options or warrants on securities, money market instruments, financial indices within the meaning of Article 9 Section 1 of Directive 2007/16/EC, interest rates, foreign exchange rates or currencies and on futures contracts according to Item 7.5.2.1, if
7.5.2.3 Interest swaps, currency swaps or interest-currency swaps;
7.5.2.4 Options on swaps as per Item 7.5.2.3, provided they feature the properties described under Item 7.5.2.2 (swaptions);
7.5.2.5 Credit default swaps, provided they serve exclusively and verifiably as xxxxxx for the credit risk of exactly attributable assets of the UCITS. Futures contracts
Derivative Financial Instruments. The use of derivative financial instruments for hedging purposes can alter the general risk profile by reducing opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence the general risk profile by creating additional, moderate to very strong opportunities and risks. Derivative financial instruments are not stand-alone investment instruments but rights whose value is essentially derived from the price, price fluctuations and price expectations of an underlying instrument. Investments in derivatives are subject to general market risk, management risk, credit risk and liquidity risk. Depending on the specific features of particular derivative financial instruments, however, the above risks may take on different characteristics and may sometimes be greater than the risks associated with investments in the underlying instruments. The use of derivatives therefore requires not only an understanding of the underlying, but also in-depth knowledge of the derivatives themselves. Derivative financial instruments also involve the risk that the AIF will suffer a loss because another party to the derivative transaction (usually a counterparty) fails to meet its obligations. The credit risk associated with exchange-traded derivatives is generally smaller than for OTC derivatives because the clearing house that acts as the issuer or counterparty to every derivatives contract traded on the exchange also guarantees that the transaction will be processed. To reduce the overall default risks, this guarantee is backed up by a daily payment system maintained by the clearing house under which the assets required as cover are calculated every day. For OTC derivatives there is nothing comparable to this clearing house guarantee, and the AIF must factor the creditworthiness of every OTC derivative counterparty into its assessment of the potential credit risk. Derivatives can also present liquidity risks, because certain instruments may be difficult to buy or sell. If a derivatives transaction is especially large or the market in question is not liquid (as may be the case for OTC derivatives), in certain circumstances it may prove impossible to execute in full or liquidation of the position may be possible only at extra cost. Other risks that the use of derivatives may present relate to the inaccurate pricing or valuation of derivatives. There is also the risk that derivatives will not correlate exactly with the underl...
Derivative Financial Instruments. The use of derivative financial instruments shall not be permitted.
Derivative Financial Instruments. Derivative financial instruments are initially measured at fair value and subsequently remeasured at fair value. The gain or loss on remeasurement to fair value is recognised in profit and loss account.
Derivative Financial Instruments. Commodity Derivatives
Derivative Financial Instruments. 12.1 Where the Client requests from the IF to proceed on his behalf with transactions in derivative Financial Instruments and the IF agrees, the Parties shall sign an additional separate document for this purpose whose provisions shall apply specifically for the Service. The provisions of the Agreement shall apply to the extent that they do not conflict with provisions of such document.
Derivative Financial Instruments. The Management Company may use derivative transactions for the sub-funds for the purpose of hedging, efficient port- folio control and to generate additional returns, and as part of the investment strategy. This may have the effect of raising the loss risk of the sub-fund, at least temporarily. The risk associated with derivative financial instruments may not exceed 100 % of the respective net sub-fund assets. In this conjunction, the total risk may not exceed 200 % of the respective net sub-fund assets. If a loan is taken out pursu- ant to UCITSG (Fig. 7.4.2.), the overall risk may not exceed 210 % of the respective net sub-fund assets. The Management Company may deploy exclusively the following basic forms of derivatives, or combinations thereof aris- ing out of these derivatives or combinations of other assets that may be acquired for the sub-funds, together with these derivatives in the respective sub-funds:
7.7.1. Futures contracts on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies;
7.7.2. Options or option certificates on securities, money market instruments, financial indices within the meaning of Art. 9 Para.1 of the Directive 2007/16/EC, interest rates, exchange rates or currencies and on futures contracts pursuant to Fig 7.7.1., if:
a) exercise is possible either throughout the entire maturity or as at the end of the maturity, and;
b) the option value is a fraction or a multiple of the difference between the strike price and the market price of the underlying security, and is zero if the difference has the respective other minus or plus sign.
7.7.3. Interest rate swaps, currency swaps or interest currency swaps;
7.7.4. Options on swaps pursuant to Fig. 7.7.3., insofar as these exhibit the characteristics described under Fig. 7.7.2. (swaptions);
7.7.5. Credit default swaps, insofar as these serve exclusively and demonstrably to hedge the credit risk of precisely attributable assets of the UCITS or of its sub-funds respectively. The aforementioned financial instruments may either be independent assets or integral parts of assets. The Management Company may conclude futures contracts on the account of the sub-funds within the framework of the investment principles on the securities and money market instruments that may be acquired for the sub-funds as well as on financial indices within the meaning of Art. 9 Para. 1 of the Directive ...
Derivative Financial Instruments. At January 28, 2006, the Company had an interest rate cap agreement (see Note 8) in place to reduce exposure to fluctuations in the interest rates on variable rate debt. The agreement was recorded in the consolidated balance sheet at fair value based on market prices. Changes in the fair value of the agreement are recorded in earnings as the agreement did not qualify as a cash flow hedge in accordance with SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. The interest rate cap agreement was settled on May 31, 2006. Revenue Recognition—Revenues from the Company’s retail stores are recognized at the time customers take possession of merchandise purchased or services are rendered, net of estimated returns, which are based on historical experience. Revenues from licensed departments are recorded at the net amounts to be received from licensees at the time customers take possession of the merchandise.
Derivative Financial Instruments. Derivative products are financial instruments whose price depends on the underlying securities. The underlying security may be a commodity, financial instrument, financial index or credit risk. Derivatives are created to enable management of the asset on which they are based. Usual derivative products are divided into four primary categories: - swaps, - options, - futures, and - forwards The main risks to which derivatives are exposed is increased market risk, leverage risk and legal risk.
