{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2018-07-30","gaps":[],"covered":["ESMA Q&A 1988 — Q&A — Securitised derivatives [Answer Published] L3"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-26","checked_against":"the ESMA publication"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/mifir/level-3/q-and-a/esma/esma-qa-1988-securitised-derivatives","url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-1988-securitised-derivatives","title":"ESMA Q&A 1988 — Q&A — Securitised derivatives [Answer Published]","family":"l3","work_id":"spaces/mifir/level-3/q-and-a/esma/esma-qa-1988-securitised-derivatives","status":"answer published","force_status":null,"date_state":"current","requested_date":null,"as_of":"2026-11-02","applies_from":null,"application":null,"version_label":"ESMA Q&A register, 30 July 2018","check":{"against":"the ESMA publication","on":"2026-10-26"},"check_result":"matched","official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1988","valid_from":"0001-01-01","valid_until":null,"revision":1,"content_id":"f181e5abb397d6db","change_date":null,"nearest_versions":["2018-07-30"],"first_text_date":null,"correction_applies":false,"versions":["2018-07-30"],"version_url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-1988-securitised-derivatives/versions/2018-07-30","revision_url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-1988-securitised-derivatives/versions/2018-07-30/rev/f181e5abb397d6db","versions_url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-1988-securitised-derivatives/versions","relations_url":"https://www.headlesslaw.com/mifir/level-3/q-and-a/esma/esma-qa-1988-securitised-derivatives/relations","source_line":"Answer by ESMA, published in its Q&A tool · not legislation · published 30 Jul 2018 [Answer Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2018-07-30","question_submitted_on":"2018-07-30","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1988, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1988, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1988","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifir/level-3/q-and-a/esma/esma-qa-1988-securitised-derivatives.md","body_sha256":"eadd820523a4b4ede3df37de4d987c919b07ed01345c17241030d86e550bb8c3"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1988 — Q&A — Securitised derivatives [Answer Published]\"\nshortTitle: \"ESMA Q&A 1988 — Q&A — Securitised derivatives [Answer Published]\"\nanswer_id: ESMA_QA_1988\ntopic: \"Product intervention\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFIR\"\nmifir_level3: true\nmica_level2: false\nlegal_basis: \"ESMA Decision 2018/795; ESMA Decision 2019/796\"\ndate: 30 July 2018\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1988\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 30 July 2018\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1988\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1988: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2018-07-30\"\n  question_submitted_on: \"2018-07-30\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1988, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1988, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 30 Jul 2018 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 30 July 2018 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1988)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1988 — Q&A — Securitised derivatives \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1988 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 30 July 2018; question submitted 30 July 2018 |\n| **Legal basis** | ESMA Decision 2018/795; ESMA Decision 2019/796 |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Securitised derivatives**\n\n### Question\n\nAre turbo certificates within the scope of the CFD Decision?\n\n***\n\n### Answer\n\n\\[ESMA 35-36-1262 Q&As on Product intervention, Q&A 5.10\\]\n\nThe CFD Decision explains in Recital 10 that inter alia turbo certificates are not within its scope because, although similar to CFDs, they have different product features.\n\nESMA clarifies that turbo certificates, unlike CFDs, have all of the following features:\n\nTurbo certificates are not margined products and the investor cannot change the leverage of the turbo certificate by adding margin to or detracting margin from a specific trading account. Investors buy the turbo-certificate and are charged transactional fees, for entering the contract;\n\nTurbo certificates do not have a contingent liability for the retail client. In other words, after the purchase of the product, the retail client has no possibility of being liable for a further payment when the transaction is completed or the position is closed (other than commission, transaction fees or other related costs);\n\nTurbo certificates qualify as a transferable security as defined in Article 4 (1) (44) (c) of MiFID; and\n\nTurbo certificates are typically listed and traded on a regulated market or MTF, which includes additional transparency requirements.\n\nHowever, ESMA acknowledges that turbo certificates have comparable features to CFDs, such as leverage. Firms should pay particular attention to the leverage made available to retail clients and consider whether the product is offered on terms that act in the best interests of the client. ESMA and NCAs will closely monitor whether new distribution trends in respect of turbo certificates raise similar investor protection concerns for retail clients and whether any firms attempt to circumvent ESMA’s CFD Decision and will act as necessary.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1988)\n"}