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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER34/12-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

Whole SectionText only Print Print Manager Link

(1 version)
Dec 9 2012 onwards

PIB A2.1.5

Whole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

(1) An Authorised FirmG must, subject to PIB Rule A2.1.3, only include in its Trading BookG :
(a) a position in a Financial InstrumentG , commodity or commodity derivative held with trading intent; or
(b) a position hedging other positions in the Trading BookG .
(2) For the purpose of (1), such positions included in the Trading BookG must be free of any restrictive covenants which limit their tradability or ability to be hedged.
(3) For the purpose of (1), a position in a Financial InstrumentG , commodity or commodity derivative is held with trading intent if:
(a) it is held with the intention of:
(i) benefiting in the short term from actual or expected differences between buying and selling prices or from other price or interest-rate variations;
(ii) selling it over the short term;
(iii) locking in arbitrage profits; or
(iv) market making;
(b) it is marked to market or marked to model regularly on a prudent and consistent basis, as part of the Authorised Firm'sG internal risk management processes;
(c) position-takers at the Authorised FirmG have autonomy in entering into or changing transactions within pre-determined limits, or the position satisfies other criteria which the Authorised FirmG applies to the composition of its Trading BookG ;
(d) there is an appropriate documented trading strategy for the position, approved by senior management which includes the expected holding horizon; and
(e) active monitoring of the position is undertaken using market information sources.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]