The contents of this Section lay down recommendations for carrying out back-testing procedures in order to determine the accuracy and robustness of conventional bank licensee's internal models for measuring market risk capital requirements. These back-testing procedures typically consist of a periodic comparison of the conventional bank licensee's daily value-at-risk measures with the subsequent daily profit or loss ("trading outcome"). The procedure involves calculating and identifying the number of times over the prior 250 business days that observed daily trading losses exceed the conventional bank licensee's one-day, 99% confidence level VaR estimate (so-called "exceptions").