Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 73

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 73
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 the Fund,
at a particular point in time, may be unable to find qualified buyers for these securities.

Combined Transactions

Combined transactions involve entering into
multiple derivatives transactions (such as multiple options transactions, including purchasing and writing options in combination with
each other; multiple futures transactions; and combinations of options, futures, forward and swap transactions) instead of a single derivatives
transaction in order to customize the risk and return characteristics of the overall position. Combined transactions typically contain
elements of risk that are present in each of the component transactions. The Fund may enter into a combined transaction instead of a
single derivatives transaction when, in the opinion of the Investment Adviser, it is in the best interest of the Fund to do so. Because
combined transactions involve multiple transactions, they may result in higher transaction costs and may be more difficult to close out.

Regulatory Matters

The Derivatives Rule permits the Fund to enter
into derivatives transactions and certain other transactions notwithstanding the restrictions on the issuance of “senior securities”
under Section 18 of the 1940 Act. The Derivatives Rule requires registered investment companies that enter into derivatives transactions
and certain other transactions that create future payment or delivery obligations to, among other things, (i) comply with a value-at-risk
leverage limit, and (ii) adopt and implement a derivatives risk management program, unless the Fund qualifies as a “limited
derivatives user,” which the Derivatives Rule defines as a fund that limits its derivatives exposure (excluding certain derivative
transactions used to hedge currency and interest rate risks) to 10% of its net assets. The Derivatives Rule requires a limited derivatives
user to adopt policies and procedures to manage its aggregate derivatives risk. The Fund currently qualifies, and intends to continue
to qualify, as a limited derivatives user and has adopted policies and procedures designed to manage its derivatives risk in accordance
with the Derivatives Rule. In the event that the Fund no longer qualifies as a limited derivatives user, the Fund will comply with the
value-at-risk leverage limit and adopt and implement a derivatives risk management program in accordance with the Derivatives Rule.

In addition, each of the exchanges and other
trading facilitates on which options are traded has established limitations on the maximum number of put or call options on a given underlying
security that may be written by a single investor or group of investors acting in concert, regardless of whether the options are written
on different exchanges or through one or more brokers. These position limits may restrict the number of