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AI Summary of Article 355 Choice of method for commodities risk

Under the governance of Articles 356 to 358, financial institutions are mandated to determine their own funds requirements for commodity risk management. This calculation must adhere to one of the prescribed methodologies delineated in Articles 359, 360, or 361. It is imperative for compliance teams to ensure that these assessments align with regulatory expectations to mitigate potential risks.

Fostering robust compliance frameworks concerning commodity risk is essential. As such, institutions should prioritise the adoption of appropriate calculation methods to bolster their financial stability and regulatory adherence.

Version status: Applicable | Document consolidation status: Updated to reflect all known changes
Version date: 1 January 2014 - onwards
Version 4 of 4

Article 355 Choice of method for commodities risk

Subject to Articles 356 to 358, institutions shall calculate the own funds requirement for commodities risk with one of the methods set out in Article 359, 360 or 361.