This is the number of back-testing exceptions calculated for the duration of the relevant period in relation to positions giving rise to foreign exchange risk, as determined in accordance with relevant prudential standards.Foreign exchange positions include on and off-balance sheet exposures which are affected by changes in foreign exchange rates. This includes holdings of, or positions in:(a) the net spot position, i.e. all asset items less all liability items, including accrued interest and other accrued income and accrued expenses, denominated in the currency in question; (b) the net forward position, i.e. all amounts to be received less all amounts to be paid under forward foreign exchange transactions, including currency futures, the principal on currency swaps not included in the spot position, and interest rate transactions such as futures and swaps denominated in a foreign currency; This amount should represent the value of positions at current spot market exchange rates or using net present values;(c) guarantees (and similar instruments) that are certain to be called and likely to be irrecoverable; and (d) any other item representing a profit or loss in foreign currencies.For the purposes of this item:- include unearned but expected future interest and anticipated expenses if the amounts are certain and the reporting party has hedged them; and- exclude structural positions, where permitted by the relevant prudential standards.Back-testing represents the process of comparing the daily trading outcome (profit or loss) with the corresponding VaR number for that day. For the purposes of this item, exceptions are reported where the trading outcome on a particularly day is a loss that exceeds the corresponding VaR number for that day.VaR, or Value at Risk, is a technique used to estimate the likelihood of losses in a portfolio based on analysis of historical price movements and volatilities over a specified observation period.For the purposes of this item the VaR used is to be the 99% ten-day VaR number calculated daily over the relevant period. A 99% ten-day VaR represents a simulated mark-to-market loss for which there is a 1% probability of occurrence over the next ten days, assuming there is no trading of the portfolio.