Ordinance of the Swiss Financial Market Supervisory Authority on Collective Investment Schemes

The terms be­low are defined as fol­lows:

a.

«se­cur­it­ies re­pur­chase agree­ment» means a repo (or sale and re­pur­chase agree­ment) and re­verse repo (or re­verse sale and re­pur­chase agree­ment);

b.

«repo» means a leg­ally bind­ing trans­ac­tion in which one party (the bor­row­er or repo seller) tem­por­ar­ily trans­fers own­er­ship of se­cur­it­ies to an­oth­er party (the repo buy­er), and where:

1.

the repo buy­er un­der­takes to re­turn to the repo seller se­cur­it­ies of the same type, quant­ity and qual­ity at the end of the repo term to­geth­er with any in­come earned dur­ing such term;

2.

dur­ing the term of the re­pur­chase agree­ment, the price risk as­so­ci­ated with the se­cur­it­ies shall be borne by the repo seller;

c.

«re­verse repo» means a repo from the per­spect­ive of the lender;

d.

«repo in­terest» means the dif­fer­ence between the selling price and pur­chase price of the se­cur­it­ies.