Structured finance products

[ESMA 35-36-1262 Q&A Product intervention, Q&A 5.11] No, structured finance products are not within the scope of the BO Decision or the CFD Decision. “ Structured finance products ” are defined in Article 2(1)(28) of MiFIR as “ those securities created to securitise and transfer credit risk associated with a pool of financial assets entitling the security holder to receive regular payments that depend on the cash flow from the underlying assets” . Article 1(a) of the CFD Decision, on the other hand, defines a CFD as a derivative with a “ long or short exposure to fluctuations in the price, level or value of an underlying ”. These are therefore two distinct types of products, one type that provides a payment originating from the cash flow of the underlying assets (structured finance products) and another type that provides a payment from the CFD provider based on differences in the price, level or value of an underlying and which depends on whether a long or short position has been taken (CFDs).