1.This section supports the Market risk standards in clarifying the calculation of the market risk capital requirement.

2.The capital charges for interest rate related instruments and equities will apply to the trading book. The capital charges for foreign exchange risk and for commodities risk will apply to banks’ total currency and commodity positions (i.e. entire book).

3.Capital requirements for market risk apply on a consolidated basis. Note that the capital required for general and specific market risk under these Standards is in addition to, not in place of, any capital required under other Central Bank Standards. Banks should follow the requirements of all other applicable Central Bank standards to determine overall capital adequacy requirements.