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  • PIB 2.2 PIB 2.2 Trading Book

    • PIB 2.2.1

      An Authorised Firm must have a Trading Book if:

      (a) it has positions that must be included in a Trading Book in accordance with PIB section A2.1 of PIB App2;
      (b) those positions are held with trading intent in accordance with PIB Rule A2.1.5; and
      (c) the total value of the positions eligible for inclusion in the Trading Book pursuant to (a) and (b):
      (i) normally exceeds $15 million or 5% of its combined on and off-balance sheet positions; or
      (ii) has exceeded $20 million or 6% of its combined on and off-balance sheet positions at any time in the preceding twelve month period.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 2.2.2

      An Authorised Firm that must have a Trading Book in accordance with PIB Rule 2.2.1 must:

      (a) comply with the requirements of PIB section A2.1 of PIB App2; and
      (b) differentiate its business between Trading Book activity and Non-Trading Book activity on a consistent basis.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 2.2.3

      An Authorised Firm which has a Trading Book must have adequate systems and controls to:

      (a) monitor the size of its Trading Book; and
      (b) ensure that positions are included consistently in its Trading Book and Non-Trading Book so that:
      (i) the inclusion of hedging positions in the Trading Book or the Non-Trading Book at all times reflects the intent of the Authorised Firm in holding the position; and
      (ii) adequate records are made if positions are transferred between Trading and Non-Trading Books so that the transfers may be identified.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]