{
    "success": true,
    "data": {
        "leverage": false,
        "derivates": true,
        "swaps": false,
        "inverse": true,
        "replication_method": "synthethic",
        "ucits": false,
        "type": "ETC",
        "complex_factors": "The ETF provides short exposure to Natural Gas using a -1 daily performance of an index plus interest. The use of an inverse strategy, and the daily reset of the leverage factor, leads to compounding effect",
        "classification": "complex",
        "supporting_data": "The WisdomTree Natural Gas 1x Daily Short (JE00B24DKH53) is classified as complex due to its inverse exposure (-1 times the daily performance) to the Bloomberg Natural Gas SL Excess Return Index. This type of product is structured to achieve returns opposite to the index movement which is a derivative instrument covered by MiFID II. The KId Document states 'Price changes in the futures contracts referenced in the Benchmark will not necessarily result in correlated changes in the level of the Benchmark or of the Product.' This type of product is not suitable for the average retail investor as it is difficult to understand the way in which the return on the investment is calculated. Furthermore, the product also does not have a fixed term. The ESMA guidance on complex debt instruments and structured deposits is relevant and should be used in the determination of the assets complexity, the ESMA notes that such a product is complex. Furthermore, the ESMA supervisory briefing notes in Section 2.1 Question relating to execution only the the definition of 'complex' versus 'non complex' and if the asset is 'complex' then the requirements for obtaining information from clients is more strenuous and should be in place. The use of an inverse strategy is difficult for the average retail investor to fully understand without financial training.The fact that this asset is categorised as a '7 out of 7' in the KID Document for the risk assessment also implies it is a high-risk asset and difficult to understand. Based on the document analysis, the asset's structure and the way returns are generated are complex, making it unsuitable for non-advised execution-only services under MiFID II. Section 2.1 of the ESMA Document also supports this. The daily reset of the leverage factor means the return of the product is not the same as the return of the index multiplied by the leverage factor. This compounding effect is also hard for the average retail client to understand."
    }
}