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Market risk

The risk of losses in on- and off-balance sheet positions arising from movements in market prices. The risks that are subject to the market risk capital requirement are:

(a) Equity position risk in the trading book (see Chapter CA-10);1
(b) Interest rate risk in trading positions in financial instruments in the trading book (see Chapter CA-9);
(c) Foreign exchange risk (see Chapter CA-11); and
(d) Commodities risk (see Chapter CA-12).

1 Equity positions in the banking book are dealt with under Paragraph CA-3.2.26.

Added: January 2015