Germany

German derivatives regulation

Sven Zeller, Clifford Chance.

The “Regulation on Risk Management and Risk Measurement in the Use of Derivatives in Investment Funds under the Investment Act” ( Derivateverordnung , the DerivateV) was published in the Federal Law Gazette on 12 February 2004 and came into force on 13 February 2004.The Regulation is based on sections 44(7) sentence 1 and 51(3) sentence 1 of the German Investment Act ( Investmentgesetz , the InvG) and applies equally to investment companies ( Kapitalanlagegesellschaften , KAGs) and investment stock corporations with fixed and variable capital ( Investmentakti-engesellschaften mit fixem und mit veränderlichem Kapital ).