Repealed Subsidiary 2007/002
Financial Services (Investment and Fiduciary Services)
FINANCIAL SERVICES (CAPITAL ADEQUACY OF INVESTMENT
FIRMS) REGULATIONS 2007 the extent to which the investment firm may transfer risk or positions between the non-trading and trading books and the criteria for such transfers.
3. The Authority may allow investment firms to treat positions that are holdings in the trading book as set out in regulation 7(1)(k), (l)(m) and (n) of the FSCACI Regulations as equity or debt instruments, as appropriate, where an investment firm demonstrates that it is an active market maker in these positions. In this case, the investment firm shall have adequate systems and controls surrounding the trading of eligible own funds instruments.
accounts for in its non-trading book may be included in the trading book for
purposes so long as all such repo-style transactions are
included. as those Schedule
For this purpose, trading-related repo-style transactions are defined that meet the requirements of regulation 7(2) and of Part A of 7 and both legs are in the form of either cash or securities
includable in the trading book. Regardless of where they are repo-style transactions are subject to a non-trading book counter risk charge.
booked, all party credit