46.For credit derivatives, there is one credit reference entity for each reference debt instrument that underlies a single-name transaction allocated to the credit risk category. Single-name transactions should be assigned to the same credit reference entity only where the underlying reference debt instrument of those transactions is issued by the same issuer.

47.The approach for establishing the reference entity for equity derivatives should correspond to the general approach for credit derivatives.

48.For credit derivatives with indices as the underlying instrument, there should be one reference entity for each group of reference debt instruments or single-name credit derivatives that underlie a multi-name transaction. Multi-name transactions should be assigned to the same credit reference entity only where the group of underlying reference debt instruments or single-name credit derivatives of those transactions has the same constituents. The determination of whether an index is investment grade or speculative grade should be based on the credit quality of the majority of its individual constituents.

49.Again, the approach for equity index derivatives should follow the general approach for credit index derivatives.