IBANK 6.5.2 Measuring Equity Position Risk

(1) The measurement of equity position risk in the trading book applies to short and long positions in all instruments that exhibit market behaviour similar to equities.

Examples of instruments with equity-like behaviour
•   common shares (whether voting or non-voting)
•   investments in Islamic collective investment schemes
•   convertible securities and commitments to buy or sell equity securities
•   convertible sukuk that trade like equities.
(2) An Islamic banking business firm may report short and long positions in instruments relating to the same issuer on a net basis.
(3) The firm must calculate the long or short position in the equity market on a market-by-market basis. That is, the firm must make a separate capital calculation for each exchange in which it holds equities (whether or not a recognised exchange).
Derived from QFCRA RM/2015-2 (as from 1st January 2016).