When an Authorised Firm uses a holding period, TN, which is different from the specified minimum holding period, TM, the Authorised Firm must calculate HM using the following formula:

HM = HN√(TM/TN)

where —

"TN" refers to the holding period used by the Authorised Firm for deriving HN; and

"HN" refers to the haircut based on the holding period TN.