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CA-10.1.2

For the guidance of the conventional bank licensees, and without being exhaustive, the following list includes financial instruments in the trading book, including forward positions, to which equity position risk capital requirements apply:

(a) Common stocks, whether voting or non-voting;
(b) Depository receipts (which should be included in the measurement framework in terms of the underlying shares);
(c) Convertible preference securities (non-convertible preference securities are treated as bonds);
(d) Convertible debt securities which convert into equity instruments and are, therefore, treated as equities (see Paragraph CA-10.1.3 below);
(e) Commitments to buy or sell equity securities; and
(f) Derivatives based on the above instruments.
January 2015