Until 31 December 2006, Member States may authorise their institutions to use the minimum spread, carry and outright rates set out in the following table instead of those indicated in paragraphs 13, 14, 17 and 18 of Annex VII provided that the institutions, in the opinion of their competent authorities:
(i) undertake significant commodities business,
(ii) have a diversified commodities portfolio, and
(iii) are not yet in a position to use internal models for the purpose of calculating the capital requirement on commodities risk in accordance with Annex VIII.
Table
|
Precious metals (except gold) |
Base metals |
Agricultural products (softs) |
Other, including energy products |
|
|---|---|---|---|---|
|
Spread rate (%) |
1,0 |
1,2 |
1,5 |
1,5 |
|
Carry rate (%) |
0,3 |
0,5 |
0,6 |
0,6 |
|
Outright rate (%) |
8 |
10 |
12 |
15 |
Member States shall inform the Commission of the use they make of this Article.