{
  "url": "https://openlegislation.uk/eu-directive-2007-16/article-10",
  "json_url": "https://openlegislation.uk/eu-directive-2007-16/article-10.json",
  "legislation": "eudr/2007/16",
  "legislation_title": "Commission Directive 2007/16/EC of 19 March 2007 implementing Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards the clarification of certain definitions (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-directive-2007-16",
  "path": "article/10",
  "kind": "article",
  "number": "10",
  "heading": "Article 21(3) of Directive 85/611/EEC, fourth subparagraphTransferable securities and money market instruments embedding derivatives",
  "text": "1. The reference in the fourth subparagraph of Article 21(3) of Directive 85/611/EEC to transferable securities embedding a derivative shall be understood as a reference to financial instruments which fulfil the criteria set out in Article 2(1) of this Directive and which contain a component which fulfils the following criteria:\n(a) by virtue of that component some or all of the cash flows that otherwise would be required by the transferable security which functions as host contract can be modified according to a specified interest rate, financial instrument price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, and therefore vary in a way similar to a stand-alone derivative;\n(b) its economic characteristics and risks are not closely related to the economic characteristics and risks of the host contract;\n(c) it has a significant impact on the risk profile and pricing of the transferable security.\n2. Money market instruments which fulfil one of the criteria set out in Article 3(2) and all the criteria set out in Article 4(1) and (2) thereof and which contain a component which fulfils the criteria set out in paragraph 1 of this Article shall be regarded as money market instruments embedding a derivative.\n3. A transferable security or a money market instrument shall not be regarded as embedding a derivative where it contains a component which is contractually transferable independently of the transferable security or the money market instrument. Such a component shall be deemed to be a separate financial instrument.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudr/2007/16/article/10",
    "retrieved_at": "2026-11-01T15:22:28.228773+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}