For the purpose of the leverage ratio exposure measure, Bahraini conventional bank licensees using trade date accounting must reverse out any offsetting between cash receivables for unsettled sales and cash payables for unsettled purchases of financial assets that may be recognised under the applicable accounting framework, but may offset between those cash receivables and cash payables (regardless of whether such offsetting is recognised under the applicable accounting framework) if the following conditions are met:
a) The financial assets bought and sold that are associated with cash payables and receivables are fair valued through income and included in the bank's regulatory trading book (See CA-8.1.5); and
b) The transactions of the financial assets are settled on a delivery-versus-payment (DVP) basis.
Bahraini conventional bank licensees using settlement date accounting will be subject to the treatment set out in Paragraphs CA-15.3.43 to CA-15.3.45 and Paragraphs CA-15.5.7 to CA-15.5.16.
Added: October 2018
