This is the value, as at the relevant date, that relates to short positions giving rise to interest rate risk, calculated in accordance to the relevant prudential standards. This item includes short positions in:- debt securities, including non-convertible preference shares and other quasi-debt securities/instruments that behave like debt (convertible bonds are to be included as debt securities if they trade like debt securities, but not if they trade like equities);- forward transactions in foreign exchange, equities and commodities; and- options that are subject to a change in value following a change in interest rates.Short positions represent positions where a fall in the value of the asset or derivative would result in a profit. 

All short positions forming part of the trading book in debt or other interest rate related securities, including interest rate derivatives, forward foreign exchange and quasi-debt securities that behave like debt (refer to APS 116), should be reported.

The data to be entered should be calculated according to the methodology detailed in APS 116. These calculations should be performed and the results reported separately for each currency (without offsetting across currencies) in which material interest rate exposures are held, and in aggregate for all currencies in which interest rate exposures are not material.
APS 116 allows the choice between three methods for the calculation of general market risk (the maturity, duration and pre-processing methods). The pre-processing method should only be used with APRA approval. For each currency, specify the method used in calculating the capital charge. If more than one method is being used for a currency, report the calculations for each method on a different currency and method combination table. APS 116 allows the offsetting of positions between the duration and pre-processing methods. ADIs performing such offsetting should report those positions (netted across the two methods) as pre-processing positions.

The net short risk-weighted positions for each time band should be reported according to the definitions of the bands in APS 116. Offsetting of positions is permitted in accordance with the requirements set out in APS 116.