Bahraini Islamic bank licensees must apply a risk weight of 2 percent to their trade exposure to the CCP in respect of OTC Shari’a compliant hedging instruments, exchange-traded Shari’a compliant hedging instrument transactions, Shari’a compliant securities financing transactions (SFTs) and long-settlement transactions, where the licensee acts as a clearing member of a CCP for its own purposes. Where the clearing member offers clearing services to clients, the 2 percent risk weight also applies to the clearing member’s trade exposure to the CCP that arises when the clearing member is obligated to reimburse the client for any losses suffered due to changes in the value of its transactions in the event that the CCP defaults.