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)
"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.
Derived from RM111/2012
(Made 15th October 2012). [VER20/12-12]