{
    "success": true,
    "data": {
        "leverage": false,
        "derivates": true,
        "swaps": true,
        "inverse": false,
        "replication_method": "synthethic",
        "ucits": true,
        "type": "ETP",
        "complex_factors": "Uses FX forward contracts to provide exposure to NOK relative to EUR, involving roll costs, counterparty risk and potential contango/backwardation effects. The product tracks an index that uses derivatives, and therefore it does not satisfy the first condition of Art.38 of the Level 2 Directive.",
        "classification": "complex",
        "supporting_data": "The WisdomTree Long NOK Short EUR ETP is classified as complex. It is an Exchange Traded Product (ETP) designed to provide investors with exposure to NOK relative to EUR. It tracks the MSFXSM Long Norwegian Krone/Euro Total Return Index (MSCEENL), providing a total return comprised of the daily performance of FX forward contracts. This means that it uses derivatives (FX forward contracts) central to its investment objective (Art. 25(3) of MiFID II) . Because derivatives are core to the strategy, this suggests a complex classification (Article 25(3) of MiFID II). The use of forwards introduces complexity and risks that the average retail investor may not fully understand, particularly the effects of rolling forward contracts, the risk of counterparty defaults, and potential contango/backwardation effects related to the rolling of forward contracts (ESMAu2019s interpretation). This ETP also includes a comprehension alert (Article 25(3) of MiFID II). The KID states 'You are about to purchase a product that is not simple and may be difficult to understand.' The product does not meet the criteria for non-complex financial instruments under Article 38 of the MiFID II Delegated Regulation because it uses FX forward contracts as part of its investment strategy and involves derivatives (Article 38(a) of the MiFID II Delegated Regulation). Also, since the value of this ETP is derived from the assets that underlie them. The cash-flows and the ultimate cash settlement will also be determined by reference to these underlying assets."
    }
}