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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  • PIB 5.6 Foreign Exchange Risk Capital Requirement

    • PIB 5.6.1

      An Authorised FirmG in CategoryG 1, 2, 3A or 5 must, subject to PIB Rule 5.6.2, calculate its Foreign Exchange Risk Capital RequirementG in respect of Trading BookG and Non-Trading BookG foreign exchange positions by:

      (a) applying its internal Market RiskG model which has been approved by the DFSAG for this purpose; or
      (b) applying the RulesG in PIB section A5.4.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • PIB 5.6.2

      An Authorised FirmG need not calculate a Foreign Exchange Risk Capital RequirementG if:

      (a) its Foreign CurrencyG business, defined as the greater of the sum of its gross long positions and the sum of its gross short positions in all Foreign CurrenciesG , does not exceed 100% of Capital ResourcesG as defined in PIB chapter 3; and
      (b) its overall net open position as defined in PIB Rule A5.4.4 does not exceed 2% of its Capital ResourcesG as defined in PIB chapter 3.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]