CA-3.11.10
The following table delineates the applicable stage of the CMLF and CMF on the asset side and associated capital charges.
| Applicable Stage of the Contract | Credit RW | Market Risk Capital Charge | |
| 1 | Commodities on banks' balance sheet for sale | Total acquisition cost to the banks for the purchase of commodities, less the market value of the commodities as collateral, subject to any haircut and specific provisions. | Not applicable* |
| 2 | Commodities sold and delivered to the customer | Based on counterparty's rating or 100% RW for unrated customer. | Not applicable |
* In the presence of a binding promise from the counterparty to purchase, and legally enforceable contract documentation, there will be no capital charge.
January 2015