CA-5.3.48
In addition to the transactions considered in the preceding paragraph above, other short-term exposures with an original maturity of less than one year that are not part of a bank's ongoing financing of an obligor are eligible for exemption from the one-year floor. Such transactions include:
(a) Some capital market-driven transactions and repo-style transactions that might not fall within the scope of the preceding paragraph;
(b) Some short-term self-liquidating trade transactions. Import and export letters of credit and similar transactions could be accounted for at their actual remaining maturity;
(c) Some exposures arising from settling securities purchases and sales. This could also include overdrafts arising from failed securities settlements provided that such overdrafts do not continue more than a short, fixed number of business days;
(d) Some exposures arising from cash settlements by wire transfer, including overdrafts arising from failed transfers provided that such overdrafts do not continue more than a short, fixed number of business days;
(e) Some exposures to banks arising from foreign exchange settlements; and
(f) Some short-term loans and deposits.
Apr 08