Q. The Central Bank's guidance - UCITS and AIF Share Class Hedging - provides inter alia that over-hedged positions should be included in calculations of global exposure. Should over-hedged positions be included when leverage is calculated: as the sum of the notionals (where a UCITS uses a VaR approach to calculate global exposure); in calculations of counterparty risk; and, in calculations of concentration exposures?
A. Yes, over-hedged positions should be included in these calculations.