Overall limit; derivatives; power to issue statutory instruments

(1) The domestic UCITS may invest, for investment purposes, only in derivatives derived from securities, money market instruments, investment units under section 196, financial indices within the meaning of Article 9(1) of Directive 2007/16/EC, interest rates, exchange rates, or currencies in which the domestic UCITS may invest under its investment conditions. The first sentence applies correspondingly to financial instruments with a derivative component within the meaning of Article 10(1) of Directive 2007/16/EC.
(2) The UCITS management company must ensure that the market risk exposure of a domestic UCITS is at most doubled through the use of derivatives and financial instruments with a derivative component under subsection (1).
(3) The Federal Ministry of Finance is empowered, by statutory instrument not requiring the consent of the Bundesrat, to 1. determine the nature of permissible risk measurement systems for derivatives, including the method for measuring market risk exposure, 2. prescribe how derivatives are to be counted towards the limits under sections 206 and 207, 3. issue further provisions on derivatives that are not admitted to trading on an exchange, or not admitted to or included in trading on another organised market, 4. determine provisions on the calculation and limitation of the amount counted towards counterparty risk under section 206(5), first sentence, point 3, 5. determine record-keeping and notification duties, 6. determine further conditions for concluding transactions having derivatives as their subject matter, in particular for derivatives whose performance moves in the opposite direction to the performance of the underlying asset. The Federal Ministry of Finance may transfer this power by statutory instrument to the Federal Institute.