Art. 72

(Art. 54 and 56 CISA)

1. Derivative financial instruments are permitted if:
   1. their underlyings are instruments as defined in Article 70 paragraph 1 letters a-d, financial indices, interest rates, exchange rates, loans or currencies;
   2. the underlyings are instruments permitted by the fund regulations; and
   3. they are traded on a stock exchange or other regulated market open to the public.
2. In the case of transactions involving OTC derivatives, the following conditions shall be complied with in addition:
   1. The counterparty is a regulated financial intermediary specializing in such transactions.
   2. The OTC derivatives are traded daily or may be returned to the issuer at any time. In addition, it is possible for them to be valued in a reliable and trans- parent manner.
3. A securities fund's overall exposure associated with derivative financial instruments may not exceed 100 per cent of the net assets. The overall exposure may not exceed 200 per cent of the fund's total net assets. When taking account of the possibility of temporary borrowing amounting to no more than 10 per cent of the net assets (Art. 77 para 2), the overall exposure may not exceed 210 per cent of the fund's total net assets.
4. Warrants must be treated in the same manner as financial instruments.