Trading book: Difference between revisions

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* [[Arbitrage]]
* [[Arbitrage]]
* [[Banking book]]
* [[Banking book]]
* [[Book]]
* [[Capital adequacy]]
* [[Capital adequacy]]
* [[Fundamental Review of the Trading Book]]
* [[Fundamental Review of the Trading Book]]
* [[Hedging]]
* [[Hedging]]
* [[Interest rate risk]]
* [[Interest rate risk]]
* [[IRRBB]]
* [[Interest Rate Risk in the Banking Book]] (IRRBB)
* [[Market risk]]
* [[Market risk]]
* [[MCRMR]]
* [[MCRMR]]

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.


See also