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Glossary of Stock Market Terms

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Undertakings for Collective Investments in Transferable Securities (UCITS I)

The aim of the original UCITS Directive 85/611/EEC, adopted in 1985, was to allow for open-ended funds investing in transferable securities to be subject to the same regulation in every Member State. Under UCITS I, derivatives could only be used for hedging and efficient portfolio management, that is with the aim of reducing risk or cost, or to replicate a position that could otherwise be achieved through investing in the underlying asset.

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