Explanation:
Under UK regulations, regarding derivatives value or notional treatment, derivatives are typically included in liquidity reporting to the extent of actual cash flows, such as collateral payable or receivable under an ISDA/CSA agreement, rather than their off-balance sheet notional values. Thus, option B is correct.
Ultimate access to all questions.
Q.4060 Which among the following choices is correct about derivatives value or notional treatment concerning UK regulations?
A
For off-balance sheet items, derivative values are not included in the calculation of the liquidity ratio
B
Derivatives are included to the extent of collateral payable or receivable under an ISDA/CSA agreement
C
For off-balance sheet items, coupons receivable or payable are not included on their pay dates
D
None of the above
No comments yet.