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CA-5.1.1

"Market risk" is defined as 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;35
(b) Benchmark risk in trading positions in Sukuk (see Chapter CA-8);
(c) Foreign exchange risk; and
(d) Commodities and inventory risk.

35 An equity position treated under "equity exposures in the banking book" is dealt with under the credit risk, as set out in Paragraphs CA-4.8.7 to CA-4.8.15.

January 2015