(a) on-balance sheet, non-derivative exposures must be net of specific allowances and valuation adjustments (e.g. credit valuation adjustments);

(b) physical or financial collateral, guarantees or credit risk mitigation purchased must not be used to reduce on-balance sheet exposures;

(c) loans must not be netted with deposits;

(d) collateral must not be netted against a derivative position, whether or not netting is allowed;

(e) collateral posted against a derivative position must be added to the Exposure Measure if posting the collateral has resulted in a reduction in the Firm’s balance sheet;

(f) if an Authorised Firm writes a credit derivative, it must include the notional value of the derivative in its Exposure Measure without allowing any offset;

(g) if an Authorised Firm is a clearing member of a CCP and is contractually liable to reimburse its Clients or the CCP for losses, as a result of a change in the value of the trading transactions in the event of a default, it must:

(h) an item that has been deducted under PIB Section 3.13 from the Tier 1 Capital must also be deducted from the Exposure Measure, except where that item relates to a liability.