Under current regulatory guidance, both the transferor of securities in a repurchase agreement and the lender of securities in a securities lending transaction are required to incorporate these securities into their own funds calculation. This inclusion is contingent upon the condition that the securities in question are categorised as trading book positions.

It is imperative for firms to assess their compliance with this directive to ensure that they meet any capital requirements. Proper documentation and classification of these securities are essential to maintain alignment with regulatory expectations and to mitigate any potential risks associated with non-compliance.