Article 360

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Capital Requirements Regulation (CRR) > PART THREE > TITLE IV > CHAPTER 4 > Article 360
Title:
Article 360
Description: 
Simplified approach
Main content: 

1. The institution's own funds requirement for each commodity shall be calculated as the sum of the following:

(a) 15 % of the net position, long or short, multiplied by the spot price for the commodity;

(b) 3 % of the gross position, long plus short, multiplied by the spot price for the commodity.

2. The institution's overall own funds requirement for commodities risk shall be calculated as the sum of the own funds requirements calculated for each commodity in accordance with paragraph 1.