You can use derivations to extend or restrict the values of elements and of simple and complex types.
An XML model allows you to derive:
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Elements by extension, restriction, list or union
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Simple types by restriction, list or union
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Complex types by extension or restriction
Note:
When you define a derivation in an element property sheet, a simple or a complex type is automatically created within the element declaration (See Preview tab). The Embedded type property is automatically set to Simple or Complex, and the Content property to Simple or Complex in the case of an embedded complex type.