PIB A2.1.3

An Authorised Firm must include in its Trading Book, subject to the Rules on trading intent and hedging Non-Trading BookExposures:

(a) each proprietary position in a Financial Instrument, commodity or commodity derivative which is held with trading intent as detailed in PIB Rule A2.1.5(3);
(b) each position arising from Matched Principal broking and market making;
(c) each position taken in order to hedge another element of the Trading Book;
(d) each Exposure due to a repurchase agreement (repo), or Securities and commodities lending, which is based on a Security or commodity included in the Trading Book;
(e) each Exposure due to a reverse repurchase agreement (reverse repo), or Securities and commodities borrowing transaction included in the Trading Book;
(f) each Exposure arising from an Unsettled Transaction, free delivery or OTC derivative; and
(g) each Exposure in the form of a fee, commission, interest, dividend or margin on an exchange-traded derivative directly related to the items included in the Trading Book.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]