Derivative Financial Instruments. Any and all material swaps, caps, floors, futures, forward contracts, option agreements (other than stock options issued to the Company’s employees, directors, agents or consultants) and other derivative financial instruments, contracts or arrangements, whether entered into for the account of the Company or one of its subsidiaries or for the account of a customer of the Company or one of its subsidiaries, were entered into in the ordinary course of business and in accordance with applicable laws, rules, regulations and policies of all applicable regulatory agencies and with counterparties believed by the Company to be financially responsible at the time. The Company and each of its subsidiaries have duly performed in all material respects all of their obligations thereunder to the extent that such obligations to perform have accrued, and there are no breaches, violations or defaults or allegations or assertions of such by any party thereunder which would, singly or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
Derivative Financial Instruments. For the UCITS, the management company can use derivatives for hedging, efficient portfolio management, to achieve additional returns and as part of the investment strategy. This can increase the risk of loss for the UCITS at least temporarily. The risk associated with derivatives financial instruments cannot exceed 100% of the net fund assets. The overall risk cannot exceed 200% of the net fund assets. The overall risk for borrowing permitted in accordance with UCITS (paragraph 7.4.2) cannot exceed 210% of the net fund assets. The management company applies the commitment approach as a risk management procedure. The following basic forms of derivatives or combinations of these derivatives or combinations of other assets that can be acquired for the UCITS, can be employed in the UCITS by the management company:
Derivative Financial Instruments. The use of derivative financial instruments for hedging purposes can alter the general risk profile by reducing opportunities and risks. The use of derivative financial instruments for investment and speculative purposes can influence the general risk profile by creating additional, moderate to very strong opportunities and risks. Derivative financial instruments are not stand-alone investment instruments but rights whose value is essentially derived from the price, price fluctuations and price expectations of an un- derlying instrument. Investments in derivatives are subject to general market risk, management risk, credit risk and liquidity risk. Depending on the specific features of particular derivative financial instruments, however, the above risks may take on different characteristics and may sometimes be greater than the risks associated with investments in the underlying instruments. The use of derivatives therefore requires not only an understanding of the underlying, but also in-depth knowledge of the derivatives themselves. Derivative financial instruments also involve the risk that the AIF will suffer a loss because an- other party to the derivative transaction (usually a counterparty) fails to meet its obligations. The credit risk associated with exchange-traded derivatives is generally smaller than for OTC derivatives because the clearing house that acts as the issuer or counterparty to every deriva- tives contract traded on the exchange also guarantees that the transaction will be processed. To reduce the overall default risks, this guarantee is backed up by a daily payment system maintained by the clearing house under which the assets required as cover are calculated every day. For OTC derivatives there is nothing comparable to this clearing house guarantee, and the AIF must factor the creditworthiness of every OTC derivative counterparty into its assessment of the potential credit risk. Derivatives can also present liquidity risks, because certain instruments may be difficult to buy or sell. If a derivatives transaction is especially large or the market in question is not liquid (as may be the case for OTC derivatives), in certain circumstances it may prove impossible to exe- cute in full or liquidation of the position may be possible only at extra cost. Other risks that the use of derivatives may present relate to the inaccurate pricing or valuation of derivatives. There is also the risk that derivatives will not correlate exactly with th...
Derivative Financial Instruments. Derivative financial instruments are initially measured at fair value and subsequently remeasured at fair value. The gain or loss on remeasurement to fair value is recognised in profit and loss account.
Derivative Financial Instruments. The use of derivative financial instruments shall not be permitted.
Derivative Financial Instruments. On behalf of the UCITS, the management company may transact with deriva- tives for hedging purposes, for efficient portfolio control, for generating addi- tional income, and as part of its investment strategy. This may at least tempo- rarily increase the loss risk of the UCITS. The risk associated with derivative financial instruments must not exceed 100% of the fund's net assets. Hereby, the total risk must not exceed 200% of the fund's net assets. In a lending transaction that is permissible pursuant to the UCITSA (section 6.4.2), the total risk shall not exceed 210% of the fund’s net as- sets. The management company utilizes the Modified Commitment approach as its risk management procedure. The management company is entitled to deploy only the following basic forms of derivatives or combinations of such derivatives or combinations of other subjects of investment that the UCITS is allowed to purchase:
Derivative Financial Instruments. 12.1 Where the Client requests from the IF to proceed on his behalf with transactions in derivative Financial Instruments and the IF agrees, the Parties shall sign an additional separate document for this purpose whose provisions shall apply specifically for the Service. The provisions of the Agreement shall apply to the extent that they do not conflict with provisions of such document.
Derivative Financial Instruments. Commodity Derivatives NGL and natural gas prices are volatile and are impacted by changes in fundamental supply and demand, as well as market uncertainty, availability of NGL transportation and fractionation capacity and a variety of additional factors that are beyond the Partnership’s control. The Partnership’s profitability is directly affected by prevailing commodity prices primarily as a result of processing or conditioning at its own or third-party processing plants, purchasing and selling or gathering and transporting volumes of natural gas at index-related prices and the cost of third-party transportation and fractionation services. To the extent that commodity prices influence the level of natural gas drilling by the Partnership’s producer customers, such prices also affect profitability. To protect itself financially against adverse price movements and to maintain more stable and predictable cash flows so that the Partnership can meet its cash distribution objectives, debt service and capital plans, the Partnership executes a strategy governed by its risk management policy. The Partnership has a committee comprised of senior management that oversees risk management activities, continually monitors the risk management program and adjusts its strategy as conditions warrant. The Partnership enters into certain derivative contracts to reduce the risks associated with unfavorable changes in the prices of natural gas, NGLs and crude oil. Derivative contracts utilized are swaps and options traded on the OTC market and fixed price forward contracts. The risk management policy does not allow the Partnership to take speculative positions with its derivative contracts. To mitigate its cash flow exposure to fluctuations in the price of NGLs, the Partnership has entered into derivative financial instruments relating to the future price of NGLs and crude oil. The Partnership currently manages the majority of its NGL price risk using direct product NGL derivative contracts. The Partnership enters into NGL derivative contracts when adequate market liquidity exists and future prices are satisfactory. A portion of the Partnership’s NGL price exposure is managed by using crude oil contracts. In periods where NGL prices and crude oil prices are not consistent with the historical relationship, the crude oil contracts create increased risk and additional gains or losses. The Partnership may settle its crude oil contracts prior to the contractual settlement date in orde...
Derivative Financial Instruments. Derivative products are financial instruments whose price depends on the underlying securities. The underlying security may be a commodity, financial instrument, financial index or credit risk. Derivatives are created to enable management of the asset on which they are based. Usual derivative products are divided into four primary categories: - swaps, - options, - futures, and - forwards The main risks to which derivatives are exposed is increased market risk, leverage risk and legal risk.
Derivative Financial Instruments. At January 28, 2006, the Company had an interest rate cap agreement (see Note 8) in place to reduce exposure to fluctuations in the interest rates on variable rate debt. The agreement was recorded in the consolidated balance sheet at fair value based on market prices. Changes in the fair value of the agreement are recorded in earnings as the agreement did not qualify as a cash flow hedge in accordance with SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. The interest rate cap agreement was settled on May 31, 2006. Revenue Recognition—Revenues from the Company’s retail stores are recognized at the time customers take possession of merchandise purchased or services are rendered, net of estimated returns, which are based on historical experience. Revenues from licensed departments are recorded at the net amounts to be received from licensees at the time customers take possession of the merchandise.
