--- title: "ESMA Q&A 1989 — Q&A — Structured finance products [Answer Published]" shortTitle: "ESMA Q&A 1989 — Q&A — Structured finance products [Answer Published]" answer_id: ESMA_QA_1989 topic: "Product intervention" status: "Answer Published" type: qa instrument_type: qa authority: ESMA binding: false binding_character: non_binding legal_status: in_force regulation: "MiFIR" mifir_level3: true mica_level2: false legal_basis: "ESMA Decision 2018/795; ESMA Decision 2019/796" date: 30 July 2018 source_link: https://www.esma.europa.eu/publications-data/questions-answers/1989 lifecycle: "Answer Published" text_version: "ESMA Q&A register, 30 July 2018" source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1989" check_status: matched verified: true last_checked: 2026-10-26 checked_against: "the ESMA publication" source: prepared_by: "ESMA" published_by: "ESMA" published_in: "ESMA Q&A tool" evidence: prepared_by: "ESMA Answer" locator: "ESMA Q&A entry ESMA_QA_1989: field 'ESMA Answer', no 'Answer provided by' line" 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_1989, column 'Esma responses', date line" question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1989, column 'Date of submission'" lifecycle_label: "Answer Published" --- **Answer by ESMA, published in its Q&A tool · not legislation · published 30 Jul 2018 [Answer Published]** *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/1989)* | | | |---|---| | **Full title** | ESMA Q&A 1989 — Q&A — Structured finance products \[Answer Published\] | | **Prepared by** | ESMA | | **Published by** | ESMA, in the ESMA Q&A tool | | **Reference** | ESMA_QA_1989 | | **Document type** | Q&A | | **Legal nature** | Not legislation | | **Addressees** | Not stated in the document | | **Dates** | Published 30 July 2018; question submitted 30 July 2018 | | **Legal basis** | ESMA Decision 2018/795; ESMA Decision 2019/796 | | **Related instruments** | None recorded | | **Text on this page** | Word for word — the full text of the ESMA publication | **Structured finance products** ### Question Are structured finance products within the scope of the BO Decision or the CFD Decision? *** ### Answer \[ESMA 35-36-1262 Q&A Product intervention, Q&A 5.11\] No, structured finance products are not within the scope of the BO Decision or the CFD Decision. “Structured finance products” are defined in Article 2(1)(28) of MiFIR as “those securities created to securitise and transfer credit risk associated with a pool of financial assets entitling the security holder to receive regular payments that depend on the cash flow from the underlying assets”. Article 1(a) of the CFD Decision, on the other hand, defines a CFD as a derivative with a “long or short exposure to fluctuations in the price, level or value of an underlying”. These are therefore two distinct types of products, one type that provides a payment originating from the cash flow of the underlying assets (structured finance products) and another type that provides a payment from the CFD provider based on differences in the price, level or value of an underlying and which depends on whether a long or short position has been taken (CFDs). *** **Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1989)