CM-5.3.4

Past version: Effective from 01 Oct 2007 to 31 Dec 2010
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A bank's exposure arising from securities' trading operations is calculated as its net long position in a particular security (a short position in one security issue may not be offset against a long position in another issue made by the same issuer). A bank'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 such securities.

October 07