Article 102 Requirements for the Trading Book

1.

Institutions shall ensure that positions in the trading book shall be either free of restrictions on their tradability or able to be hedged.

2.

Institutions shall ensure that trading intent shall be evidenced on the basis of the strategies, policies and procedures set up by the institution to manage the position or portfolio in accordance with Articles 103, and 104.

3.

Institutions shall establish and maintain systems and controls to manage their trading book in accordance with Article 103.

4.

[Note: Provision left blank]

5.

Institutions shall ensure that positions in the trading book shall be subject to the requirements for prudent valuation specified in Article 105.

6.

Institutions shall treat internal hedges in accordance with Article 106.

[Note: This rule corresponds to Article 102 of the CRR as it applied immediately before revocation by the Treasury.]