Financial Sector (Collection of Data) (reporting standard) determination No. 75 of 2006 - Reporting Standard GRS 160.0 (2007) Derivative Activity and Risk Charge
Written Option Positions Written Option Positions
Start here
Get a plain-English read of Written Option Positions
Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) (reporting standard) determination No. 75 of 2006 - Reporting Standard GRS 160.0 (2007) Derivative Activity and Risk Charge.
Written Option Positions
(Note: do not include options in the form of credit derivatives, these are separately disclosed).
Report option positions where the insurer has written/sold option positions (i.e. call or put options), and as a result has the obligation to deliver or purchase the underlying product of the option or settle in cash, if exercised by the holder of the option position sold by the insurer. Disclose sold option exposures into the following:
(i) Call option.
Obligation but not the right of the writer of the option to sell the underlying security/asset to the holder of the option.
(ii) Put option.
Obligation but not the right of the writer of the option to buy the underlying security/asset from the holder.
- Credit Derivatives
(Note: do not include options based on financial market products/indexes, these are separately disclosed)
Report credit derivative option positions where the insurer is:
(i) providing credit protection; or
(ii) purchasing credit protection.