Netting
1. A responsible person shall only net positions -
(i) Between FDI, if the FDI refer to the same underlying asset, including where the maturity date of the FDI is different, and
(ii) Between an FDI which has an underlying asset that is a transferable security, money market instrument or a collective investment undertaking and that same corresponding underlying asset.
Hedging
2. The responsible person may only take hedging arrangements into account when calculating global exposure where the hedging arrangements offset the risks linked to some assets and if the hedging arrangements comply with all of the following:
(i) They do not aim to generate a return;
(ii) They result in a verifiable reduction of risk at the UCITS level;
(iii) They offset risk linked to FDI;
(iv) They relate to the same asset class;
(v) They are efficient in stressed market conditions.