Regulatory Alerts2011-01-11
Circular 6/2010 of the National Securities Market Commission on Derivative Instrument Operations by Collective Investment Institutions
The Spanish National Securities Market Commission (CNMV) issued Circular 6/2010 to establish detailed rules for the use of derivative instruments by Collective Investment Institutions (IICs), aligning national regulations with EU Directives 2007/16/EC and 2010/43/EU. The document defines eligible underlying assets, specifies liquidity requirements for short sales, and mandates the use of either the commitment or Value at Risk (VaR) methodologies to measure market risk exposure limits. Additionally, it introduces new reporting models for internal information and modifies existing circulars regarding debt limits, internal control procedures, and the calculation of required resources for management companies.
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