(3)Cross-currency interest rate swaps are used by institutions to hedge the foreign exchange risk arising from funding or investment in foreign currencies. Although such transactions primarily depend on foreign exchange risk drivers, they can depend also on other risk drivers, such as interest rate risk drivers. Nevertheless, as market experience shows that the effect of these other risk drivers is very often immaterial for these particular transaction types, if a transaction falls under this type, this should suffice for identifying such transactions as derivative transactions with only one material risk driver.