This is the scaling factor (Value at Risk (VaR)) applicable, for positions giving rise to commodities risk, as determined in accordance with relevant prudential standards.The scaling factor consists of a multiplication factor and a plus factor, as determined in accordance with relevant prudential standards. The multiplication factor is set for each reporting party by APRA, and is subject to a minimum of three. A plus factor may also be required by APRA. This factor relates directly to back-testing results from the most recent 250 trading days prior to the relevant date.Commodity positions include both on and off-balance sheet exposures which are affected by changes in commodity prices. This includes holdings of, or positions in:- commodity forwards;- commodity futures;- commodity swaps; and- other applicable commodity instruments (e.g. commodity options).Back-testing represents the process of comparing the daily trading outcome (profit or loss) with the corresponding VaR number for that day.