1. Rule 5.3.1 provides that the Market Risk Capital Requirement of an Authorised Person is calculated as the sum of a number of Subsidiary Capital Requirements. Sections 5.4 to 5.10 set out the manner in which each of those Subsidiary Capital Requirements must be calculated, monitored and controlled by an Authorised Person.
2. In addition to complying with the applicable Rules in Chapter 5, an Authorised Person investing in or holding Islamic Contracts whether or not for the purpose of a PSIA will need to take account of the provisions under the IFR rules to calculate the Market Risk for those Islamic Contracts.