Equity Derivatives used in AM?

Hi,

I'm new to AM area. I wonder if large AM groups like BlackRock and Vangaurd use options, dividend swaps or other equity derivatives to invest? Is there any regulation rule keeping the funds away from these instruments?

I had a look at BlackRock's website, it seems that they have "fundamental equity" under PMG, and reckon it's about cash equities other than options?

Thanks

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