4. Institutions should reflect the impact within the liquidity horizon of maturity mismatches …

Institutions should reflect the impact within the liquidity horizon of maturity mismatches between long and short positions (for example if a CDS matures before the underlying bond and the default happens after the CDS maturity), if the resulting risks are material. Therefore, an institution should be able to compute the P&L taking into account the impact of potential maturity mismatches between long and short positions. An institution should at least be able to prove that the above-mentioned risk is not a material risk, otherwise it should have to model the risk accordingly.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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