PRU 3.21.2

An Authorised Person must calculate its Leverage Ratio in accordance with the following methodology:

Leverage Ratio = Capital Measure ÷ Exposure Measure

where:

(a) "Capital Measure" represents the Tier 1 Capital of the Authorised Person calculated in accordance with Rule 3.9.1; and
(b) "Exposure Measure" represents the value of Exposures of the Authorised Person calculated in accordance with Rules 3.21.5 and 3.21.6.