• Market risk

    • IFR 5.4.8

      An Authorised Person Managing a PSIA, which is an Unrestricted PSIA, must calculate its PSIACOMmarket in relation to all underlying Islamic Contracts in the manner prescribed in PRU Chapter 5, except as may be provided in IFR 5.4.9 to 5.4.17.

    • IFR 5.4.9

      An Authorised Person must treat Sukuk held in its Trading Book as equity for the purpose of calculating its Equity Risk Capital Requirement and determine the same in accordance with PRU Rule 5.5.1.

    • IFR 5.4.10

      Where investments are made using Musharaka or Mudaraba contracts with commodities as the underlying assets, an Authorised Person must calculate its Commodities Risk Capital Requirement in accordance with PRU Rule 5.7.1.

    • IFR 5.4.11

      An Authorised Person which is exposed to the risk of foreign currencies and gold under any Islamic Contract, must calculate its Foreign Exchange Risk Capital Requirement in accordance with PRU Rule 5.6.2.

    • IFR 5.4.12

      An Authorised Person which is exposed to commodities including precious metals but excluding gold under any Islamic Contract, must calculate its Commodities Risk Capital Requirement in accordance with PRU Rule 5.7.

    • IFR 5.4.13

      (a) Commodities held by an Authorised Person for selling or leasing when executing a Murabaha, non-binding MPO, Salam or parallel Salam contract must be included in the calculation of its Commodities Risk Capital Requirement.
      (b) Where an Authorised Person executes Salam and parallel Salam contracts, the resultant long and short positions may be set off for calculating the net open position, provided that the positions are in the same commodity, regardless of how its Commodities Risk Capital Requirement is calculated.

    • IFR 5.4.14

      Where an Authorised Person executes Musharaka or Mudaraba contracts for investing in entities or investment vehicles that trade in foreign exchange, equities or commodities, it must include the relevant underlying assets in the calculation of its Market Risk Capital Requirement in accordance with PRU Chapter 5.