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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 31 December 2020 - onwards
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Article 12 Derivatives: general conditions

(1) The conditions in this article are that -

(a) the relevant risk requirement attributable -

(i) to all transactions entered into which meet the conditions in articles 9 to 11, and

(ii) to any investments traded by the ring-fenced body under article 6(1) for the purpose of hedging risks arising in relation to the transactions referred to in paragraph (i) (provided that those investments are hedged separately from any other investments entered into by the ring-fenced body under article 6(1)),

is at all times less than 0.5% of the ring-fenced body's own funds;

(b) the sum of the relevant risk requirements attributable to each individual transaction with an account holder under articles 9 to 11 is at all times less than 25% of the credit risk capital requirement of the ring-fenced body; and in calculating the sum of the relevant risk requirements, no relevant risk requirement may be set off against any other relevant risk requirement;

(c) the sum of the relevant risk requirements attrib