PIB A4.11.4 PIB A4.11.4
When calculating the
Exposuresof an Authorised Firm, the Authorised Firm must include Trading Book Exposuresand Non-Trading Book Exposuresto:(a) an individual Counterparty;(b) group of Closely Related Counterparties;(c) Connected Counterparties; and,(d) Transactions, schemes or Funds.
PIB A4.11.4 Guidance1. An individual
Counterpartyis a natural or legal person, which include governments, local authorities, public sector enterprises (PSEs), trusts, corporations, unincorporated businesses and non-profit-making bodies.2. Examples of a Counterpartyinclude:a. the customer or borrower;b. where the Authorised Firmis providing a guarantee, the person guaranteed;c. for a Derivativescontract, the person with whom the contract was made;d. for most exchange-traded contracts involving a central clearing mechanism, that central clearing mechanism; ande. where a bill held by an Authorised Firmhas been accepted by another Financial Institution, the acceptor.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]