Financial Sector (Collection of Data) (reporting standard) determination No. 11 of 2008 - ARS 116.0 - Market Risk
Column 1. Positions attracting 8% specifColumn 1. Positions attracting 8% specific risk charge
Start here
Get a plain-English read of Column 1. Positions attracting 8% specif
Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) (reporting standard) determination No. 11 of 2008 - ARS 116.0 - Market Risk.
Column 1. Positions attracting 8% specific risk charge
The capital charge for specific risk is equal to 8 per cent of the gross position (i.e. the sum of the absolute value of all long equity positions and of all short equity positions). The exceptions to this rule are where:
(a) the portfolio is both liquid and well diversified (refer to paragraphs 36 and 37 of Attachment B to APS 116);
(b) the position is in an approved index contract (refer to paragraph 43 of Attachment B to APS 116); and
(c) the ADI is engaged in certain arbitrage transactions (refer to paragraphs 45 to 48 of Attachment B to APS 116).
The gross value of all positions not eligible for any of these exceptions is to be reported in column 1 Positions attracting 8% specific risk charge.