CA-3.2.1

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Past version: Effective from 18 Jul 2025 to 30 Sep 2019
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An investment firm licensee's Position Risk Requirement is the sum of its individual Position Risk Requirements, calculated as a percentage of the market or realisable value of each financial instrument held, as specified in Schedule 1 below:

Schedule 1 — Position Risk Requirement
(a)	Debt	<90 days	90 days–1 yr	1–5 yrs	>5 yrs
	OECD	2% x MV	2% x MV	5% x MV	10% x MV
	Issued or accepted by banks	2% x MV	2% x MV	5% x MV	10% x MV
	Other marketable financial instruments	10% x MV	10% x MV	20% x MV	30% x MV
	Floating rate notes	<20 yrs	5% x MV
		>20 yrs	10% x MV
(b)	Equities
	Listed on a regulated financial instrument exchange				25% x MV
	Listed on Bahrain Stock Exchange				25% x MV
	Traded on a regulated financial instrument exchange				35% x MV
	Traded on Bahrain Stock Exchange				35% x MV
	Other				100% x MV
(c)	Commodities
	Stock positions in physical commodities associated with an investment firm licensee's investment firm				30% of realisable value
(d)	Futures, options and contracts for differences
	Exchange traded futures and written options			4 x initial margin requirement
	Off exchange futures and written options			The appropriate percentage shown in a, b and c above should be applied to the value of the underlying position.
	Purchased options			As for off exchange written options but limited to the current value of the option.
	Contracts for differences			20% of the market value of the contract.
(e)	Other investments
	Single premium unit linked bonds and units in a regulated collective investment scheme unless covered below			25% of realisable value
	Units in a regulated scheme which is a geared futures and options fund, or a property fund, or a warrant fund			50% of realisable value
	With profit life policies			20% of surrender value
	Any other investments			100% of amount of asset