Entire Section
Market Risk
IFR 5.4.8
An
Authorised Firm Managing a PSIA , which is anUnrestricted PSIA , must calculate its PSIACOMmarket in relation to all underlyingIslamic Contracts in the manner prescribed in PIB chapter 5, except as may be provided in Rules IFR 5.4.8 to IFR 5.4.17.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]
[Amended] DFSA RM115/2012 (Made 15th October 2012). [VER5/12-12]IFR 5.4.9
An
Authorised Firm must treatSukuk held in itsTrading Book as equity for the purpose of calculating itsEquity Risk Capital Requirement and determine the same in accordance with PIB Rule 5.5.2.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.10
Where investments are made using
Musharaka orMudaraba contracts with commodities as the underlying assets, anAuthorised Firm must calculate itsCommodities Risk Capital Requirement in accordance with PIB Rule 5.7.2.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.11
An
Authorised Firm which is exposed to the risk of foreign currencies and gold under anyIslamic Contract , must calculate itsForeign Exchange Risk Capital Requirement in accordance with PIB Rule 5.6.2.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.12
An
Authorised Firm which is exposed to commodities including precious metals but excluding gold under anyIslamic Contract , must calculate itsCommodities Risk Capital Requirement in accordance with PIB Rule 5.7.2.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.13
(1) Commodities held by anAuthorised Firm for selling or leasing when executing aMurabaha , non-binding MPO,Salam orParallel Salam Contract must be included in the calculation of itsCommodities Risk Capital Requirement .(2) Where anAuthorised Firm executesSalam and parallelSalam contracts, the resultant long and short positions may be set off for calculating the net open position, provided that the positions are in the same commodity, regardless of how itsCommodities Risk Capital Requirement is calculated.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]IFR 5.4.14
Where an
Authorised Firm executesMusharaka orMudaraba contracts for investing in entities or investment vehicles that trade in foreign exchange, equities or commodities, it must include the relevant underlying assets in the calculation of itsMarket Risk Capital Requirement in accordance with PIB chapter 5.Derived from DFSA RM69/2010 (Made 1st March 2010). [VER1/03-10]