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 commitments to buy that security together with its current holding of the same security, less its commitments to sell such securities.
Amended: January 2011
October 2007