• IBANK 6.3.3 IBANK 6.3.3 Using simplified Approach

    An Islamic banking business firm that does not write options must calculate capital charges in accordance with:

    (a) rule 6.3.4 for a position that is a 'long cash and long put' or 'short cash and long call' position; or
    (b) rule 6.3.5 for a position that is a 'long put' or 'long call' position.
    Derived from QFCRA RM/2015-2 (as from 1st January 2016).

    • IBANK 6.3.3 Guidance

      In the simplified approach, the position in the option and the associated underlying asset (cash or forward) is not subject to the mark-to-market method. Instead, each position is carved-out and is subject to a separately calculated capital charge for specific risk and general risk.

      Derived from QFCRA RM/2015-2 (as from 1st January 2016).