+Article 7 (a)

Article 7 (a)

review the business strategy referred to in Article 104b of that Regulation as documented in the internal policies of the institution under Article 325bi(1), point (e), of that Regulation, and verify whether:

(i)

internal policies clearly describe the economic rationale of the business strategy, including its primary activities, trading, and hedging strategies;

(ii)

internal policies describe the features of the financial instruments and commodities traded by the trading desk, and contains a regularly updated and comprehensive list of those financial instruments and commodities;

(iii)

the institution highlights in its internal policies the instruments that are most frequently traded and that contribute the most to the acceptable level of risk for the trading desk;

(iv)

internal policies describe risk factor’s types inherent in the financial instruments and commodities referred to in point (ii);

(v)

internal policies clearly describe how the instruments and commodities referred to in point (ii) are hedged, what are the expected slippages and mismatches of hedges, and what is the expected holding period for the positions in the trading desk;

(vi)

the business strategies of the trading desks are distinctive, as required by Article 104b(2), point (a), of Regulation (EU) No 575/2013, by:

(1)

identifying the main characteristics of the trading desks in terms of business strategy, including primary activities, trading and hedging strategies;

(2)

verifying that the main characteristics referred to in point (1) meaningfully differ from one trading desk to another;

1. Ħarsa ġenerali

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1.1 Referenzi

1.2 Rekwiżiti identifikati

1.3 Standards relatati

2. Rekwiżiti identifikati

Rekwiżiti

3. Standards relatati

Standards