Article 362

Path:
Capital Requirements Regulation (CRR) > PART THREE > TITLE IV > CHAPTER 5 > Section 1 > Article 362
Title:
Article 362
Description: 
Specific and general risks
Main content: 

Position risk on a traded debt instrument or equity instrument or derivative thereof may be divided into two components for purposes of this Chapter. The first shall be its specific risk component and shall encompass the risk of a price change in the instrument concerned due to factors related to its issuer or, in the case of a derivative, the issuer of the underlying instrument. The general risk component shall encompass the risk of a price change in the instrument due in the case of a traded debt instrument or debt derivative to a change in the level of interest rates or in the case of an equity or equity derivative to a broad equity- market movement unrelated to any specific attributes of individual securities.