Trading book: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Mend link.) |
imported>Doug Williamson (Add link.) |
||
| Line 16: | Line 16: | ||
* [[Arbitrage]] | * [[Arbitrage]] | ||
* [[Banking book]] | * [[Banking book]] | ||
* [[Book]] | |||
* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Fundamental Review of the Trading Book]] | * [[Fundamental Review of the Trading Book]] | ||
Latest revision as of 15:19, 14 July 2022
Bank supervision - capital adequacy.
For capital adequacy calculation purposes, a bank's trading book includes any instruments which are held for any one or more of:
- Short term resale.
- Profiting from short term price movements.
- Locking in arbitrage profits.
- Hedging risks arising from any of these activities.
The trading book is distinguished from the banking book.
The banking book includes all instruments which are not in the trading book.
