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  • Offsetting Long and Short Positions in the Trading Book

    • CM-2.3.12

      Bahraini Islamic bank licensee's exposure arising from securities’ trading operations is calculated as its net long position in a particular security. The licensee’s ‘net long position’ in a security refers to its commitment to buy that security together with its current holdings of the same security, less its commitment to sell these securities.

      Added: June 2022

    • CM-2.3.13

      Positions in the same issue (two issues are defined as the same if the issuer, return, currency and maturity are identical) may only be offset for the purpose of calculating large exposure.

      Added: June 2022

    • CM-2.3.14

      Positions in different issues from the same counterparty may be offset only when the short position is junior to the long position, or if the positions are of the same seniority, if applicable.

      Added: June 2022

    • CM-2.3.15

      Bahraini Islamic bank licensee must add any exposure to any single counterparty arising in the trading book to any other exposures to that counterparty that lie in the banking book to calculate its total exposure to that counterparty.

      Added: June 2022

    • CM-2.3.16

      Netting across the banking and the trading books is not permitted.

      Added: June 2022