PET - Plain English Taxonomy

Label:	Financial Risk Market Options Foreign Exchange Purchased Positions Amount
TREF ID:	DE7889
Data Type:	xbrli:monetaryItemType
Period Type:	instant
Balance Type:	debit
Business Description & Guidance:	This is the value, as at the relevant date, of foreign exchange (including gold) options the entity has purchased, as determined in accordance with relevant prudential standards.A bought option includes both put and call options that have been purchased by an entity. It provides the purchasing entity with the right but not the obligation to buy or sell a specific amount of the underlying asset at a pre-agreed price, on or before a specific future date.A foreign exchange contract is any contract that transfers the exchange rate risk of an underlying asset from one party to another.A gold contract is any contract that transfers the gold price risk associated with an underlying asset from one party to another.

Usage

Form	Labels
ARF_116_0_7	Label: Guidance:	Standard Method - Options - Simplified Method - Capital Charge - Foreign Exchange Call Options This item represents the capital charge. Refer to APS 116. The simplified method may only be used by those ADIs that handle a limited range of purchased options. The method for calculating the capital charge on an options position depends on whether the position is covered or naked. Option positions, which are partially covered, should be separated into a fully covered position and a naked position. For both covered and naked positions, if positions do not fall within the trading book (for example, options on certain foreign exchange or commodities positions), ADIs may use the book value rather than the market value.

Form

Labels

ARF_116_0_7

Label:

Guidance:

Standard Method - Options - Simplified Method - Capital Charge - Foreign Exchange Call Options
This item represents the capital charge. Refer to APS 116.

The simplified method may only be used by those ADIs that handle a limited range of purchased options.

The method for calculating the capital charge on an options position depends on whether the position is covered or naked. Option positions, which are partially covered, should be separated into a fully covered position and a naked position. For both covered and naked positions, if positions do not fall within the trading book (for example, options on certain foreign exchange or commodities positions), ADIs may use the book value rather than the market value.