The RtF K-factor requirement is determined by the following formula:
K- TCD + K-DTF + K-CON
where:
K-TCD is equal to the amount calculated in accordance with Article 26;
K-DTF is equal to DTF measured in accordance with Article 33, multiplied by the corresponding coefficient established in Article 15(2) and
K-CON is equal to the amount calculated in accordance with Article 39.
K-TCD and K-CON shall be based on the transactions recorded in the trading book of an investment firm dealing on own account, whether for itself or on behalf of a client.
K-DTF shall be based on the transactions recorded in the trading book of an investment firm dealing on own account, whether for itself or on behalf of a client, and the transactions that an investment firm enters into through the execution of orders on behalf of clients in its own name.