{
    "type": "ETP",
    "ucits": false,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": true,
    "leverage": false,
    "inverse": true,
    "complex_factors": [
        "Synthetic replication via unfunded swaps",
        "Counterparty risk exposure",
        "Inverse FX exposure",
        "Use of FX forward contracts",
        "Collateralised debt security structure"
    ],
    "classification": "complex",
    "supporting_data": "The WisdomTree Short EUR Long GBP product is a Jersey law governed, fully collateralised Exchange Traded Product (ETP) that provides inverse exposure to EUR relative to GBP by tracking the MSFXSM Short Euro/GBP Total Return Index. The product achieves its investment objective through synthetic replication using unfunded swap agreements referencing FX forward contracts. The KIID and factsheet explicitly mention the use of swaps, counterparty risk, and collateral held to mitigate such risk. The product is structured as a debt security rather than an equity fund and is not UCITS compliant. There is no leverage ratio above 1:1, but the product provides inverse exposure (short EUR/long GBP), which is a complexity trigger. The risk indicator is moderate (3/7), but the product carries significant complexity due to its synthetic structure, swap counterparty exposure, and the nature of the underlying FX forwards. The product also warns that it 'is not simple and may be difficult to understand' and requires specific knowledge or experience, further supporting the complex classification. No capital protection or structured contingent features are present, and costs are straightforward without performance fees. However, the synthetic replication via unfunded swaps and inverse exposure are sufficient to classify this ETP as complex under MiFID II rules."
}