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🔗 Back to Summary. 🇫🇷 French Version: 2026R0466_FR.5. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Article 4 – Redemption fees ⬅️ | ➡️ Article 6 – Dual pricing
Article 5 - Swing pricing
1.
The swing factor shall include the estimated explicit transaction costs as referred to in Article 4(3), first subparagraph. Where appropriate to the investment strategy of the UCITS, the swing factor shall also include the implicit transaction costs referred to in Article 4(3), second subparagraph, including any significant market impact of asset purchases or sales to meet those subscriptions or redemptions. Those implicit transaction costs shall be estimated on a best effort basis.
2.
The swing factor shall be expressed as a percentage of the net asset value of the units or shares of the UCITS.
3.
A UCITS may apply swing pricing where there is a difference between the redemption orders and the subscription orders (‘full swing’) or where the difference exceeds a predefined activation threshold (‘partial swing’). In either case:
(a)
where the difference between the redemption orders and the subscription orders for a given dealing date results in net redemptions, the swing factor shall be deducted from the net asset value of the units or shares of the UCITS;
(b)
where the difference between the redemption orders and the subscriptions orders for a given dealing date results in net subscriptions, the swing factor shall be added to the net asset value of the units or shares of the UCITS.
4.
Swing pricing may include different swing factors corresponding to different activation thresholds.