PET - Plain English Taxonomy

Label:	Financial Risk Market Commodities Short Positions Amount
TREF ID:	DE8039
Data Type:	xbrli:monetaryItemType
Period Type:	instant
Balance Type:	credit
Business Description & Guidance:	This is the value, as at the relevant date, in relation to short positions giving rise to commodities risk (excluding gold risk), as determined in accordance with relevant prudential standards. This item includes short positions (both on-balance sheet and off-balance sheet) in: - commodity forwards; - commodity futures; - commodity swaps; and - other applicable commodity instruments (e.g. commodity options, where the entity uses a particular capital treatment approach).Short positions represent borrowed assets, or instruments, that have been sold with the expectation that the asset will fall in value.For the purposes of this item and subject to prior approval from APRA, positions in foreign currency denominated commodities may be segmented into a commodities exposure and a foreign currency exposure. Only report the commodities exposure at this item.

Usage

Form	Labels
ARF_116_0_5	Label: Guidance:	Standard Method - Commodities Risk - Simplified Method - Total Short Positions An ADI that uses the simplified approach to calculate the capital charge for commodities risk should complete this item. All commodity positions, both on-balance sheet and off-balance sheet, which are affected by changes in commodity prices, should be included. This includes commodity forwards, commodity futures and commodity swaps. It also includes the delta-equivalent of commodity options (where the delta-plus method for options is used). Commodity derivatives should be converted into notional commodity positions according to the methods set out in APS 116. Each commodity position should first be expressed in terms of the standard unit of measurement (e.g. barrels, kilos, grams) and then converted into Australian dollars using spot rates applying at the close of business on the reporting date (report the AUD figure). If prior approval has been obtained from APRA, positions in foreign currency denominated commodities may be segmented into a commodity exposure and a foreign currency exposure. Positions in different commodities may not, as a general rule, be offset (refer to APS 116 for details of permissible offsetting).
ARF_116_0_6	Label: Guidance:	Standard Method - Commodities Risk - Maturity Ladder Method - Short Positions An ADI that uses the maturity ladder approach should complete this item. For each of the maturity bands, report the total short position in each commodity. Physical stocks should be allocated to the first time band. Positions in commodity derivatives should be assigned maturities in accordance with the treatment set out in APS 116. All commodity positions, both on-balance sheet and off-balance sheet, which are affected by changes in commodity prices, should be included. This includes commodity forwards, commodity futures and commodity swaps. It also includes the delta-equivalent of commodity options (where the delta-plus method for options is used). Commodity derivatives should be converted into notional commodity positions according to the methods set out in paragraph 64 of Attachment B to APS 116. Each commodity position should first be expressed in terms of the standard unit of measurement (e.g. barrels, kilos, grams) and then converted into Australian dollars using spot rates applying at the close of business on the reporting date (report the AUD figure). If prior approval has been obtained from APRA, positions in foreign currency denominated commodities may be segmented into a commodity exposure and a foreign currency exposure. The capital charge must be calculated separately for each commodity. Positions in different commodities may not, as a general rule, be offset (refer to paragraph 61 of Attachment B to APS 116 for details of permissible offsetting).

Form

Labels

ARF_116_0_5

Label:

Guidance:

Standard Method - Commodities Risk - Simplified Method - Total Short Positions
An ADI that uses the simplified approach to calculate the capital charge for commodities risk should complete this item.

All commodity positions, both on-balance sheet and off-balance sheet, which are affected by changes in commodity prices, should be included. This includes commodity forwards, commodity futures and commodity swaps. It also includes the delta-equivalent of commodity options (where the delta-plus method for options is used). Commodity derivatives should be converted into notional commodity positions according to the methods set out in APS 116.

Each commodity position should first be expressed in terms of the standard unit of measurement (e.g. barrels, kilos, grams) and then converted into Australian dollars using spot rates applying at the close of business on the reporting date (report the AUD figure). If prior approval has been obtained from APRA, positions in foreign currency denominated commodities may be segmented into a commodity exposure and a foreign currency exposure.

Positions in different commodities may not, as a general rule, be offset (refer to APS 116 for details of permissible offsetting).

ARF_116_0_6

Label:

Guidance:

Standard Method - Commodities Risk - Maturity Ladder Method - Short Positions
An ADI that uses the maturity ladder approach should complete this item.

For each of the maturity bands, report the total short position in each commodity. Physical stocks should be allocated to the first time band. Positions in commodity derivatives should be assigned maturities in accordance with the treatment set out in APS 116.

All commodity positions, both on-balance sheet and off-balance sheet, which are affected by changes in commodity prices, should be included. This includes commodity forwards, commodity futures and commodity swaps. It also includes the delta-equivalent of commodity options (where the delta-plus method for options is used). Commodity derivatives should be converted into notional commodity positions according to the methods set out in paragraph 64 of Attachment B to APS 116.

Each commodity position should first be expressed in terms of the standard unit of measurement (e.g. barrels, kilos, grams) and then converted into Australian dollars using spot rates applying at the close of business on the reporting date (report the AUD figure). If prior approval has been obtained from APRA, positions in foreign currency denominated commodities may be segmented into a commodity exposure and a foreign currency exposure.

The capital charge must be calculated separately for each commodity. Positions in different commodities may not, as a general rule, be offset (refer to paragraph 61 of Attachment B to APS 116 for details of permissible offsetting).