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8. MARKET RISK
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LEGAL ENTITIES LEGISLATION
FINANCIAL SERVICES LEGISLATION
REGULATIONS
RULES
GENERAL RULES
CONDUCT OF BUSINESS RULES
ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING AND SANCTIONS RULES
COLLECTIVE INVESTMENT SCHEME RULES
AUTHORISED MARKET INSTITUTION RULES
MARKET RULES
RECOGNITION RULES
DEMATERIALISED INVESTMENT RULES
RULES FOR PRE-IPO LISTINGS
SOVEREIGN BONDS RULES
BANKING BUSINESS PRUDENTIAL RULES
PRUDENTIAL RULES FOR INVESTMENT FIRMS
PRUDENTIAL RULES FOR INSURANCE INTERMEDIARIES
INSURANCE AND REINSURANCE PRUDENTIAL RULES
ISLAMIC BANKING BUSINESS PRUDENTIAL RULES
1. GENERAL
2. PRINCIPLES RELATING TO AN ISLAMIC BANK
3. PRUDENTIAL REPORTING REQUIREMENTS
4. CAPITAL ADEQUACY
5. CAPITAL BUFFERS AND OTHER REQUIREMENTS
6. CREDIT RISK
7. CONCENTRATION RISK AND LARGE EXPOSURES
8. MARKET RISK
8.1. General
8.2. Role of governing body—market risk
8.3. Relation to stress-testing
8.4. Requirements—Capital and management of market risk
8.5. Trading Book
8.6. No switching of instruments between books
8.7. Market Risk Management Policy
8.8. Trading Book Policies
8.9. Measurement of market risk - Standard method
8.10. Valuing positions—mark-to-market
8.11. Valuing positions—mark-to-model
8.12. Independent price verification
8.13. Valuation adjustments
8.14. Foreign exchange risk
8.15. What to include in foreign exchange risk
8.16. Foreign exchange risk on consolidated basis
8.17. Capital charge—foreign exchange risk
8.18. Valuing positions—binding unilateral promises
8.19. Options risk
8.20. Measuring options risk
8.21. Using simplified approach
8.22. Capital charges—‘long cash and long put’ or ‘short cash and long call’
8.23. Capital charges—‘long put’ or ‘long call’
8.24. Using delta-plus method
8.25. Relation to mark-to-market method
8.26. Capital charges—options
8.27. Gamma Capital charges
8.28. Vega Capital charges
8.29. Commodities risk and inventory risk
8.30. Measuring commodities risk
8.31. Measuring net positions
8.32. What to include in commodities risk
8.33. Assigning notional positions to maturities
8.34. Capital charges—simplified approach
8.35. Relation to market risk
8.36. Measuring inventory risk
8.37. Equity position risk
8.38. Measuring equity position risk
8.39. What to include in equity position risk
8.40. Charges for specific and general risks
8.41. Offsetting positions
8.42. Charges for index contracts
8.43. Profit rate risk in the trading book
8.44. What to include in profit rate risk
8.45. Capital charge—profit rate risk
8.46. Calculating specific risk Capital charge
8.47. Instruments that have no specific risk Capital charge
8.48. Measuring general risk
8.49. Maturity method
8.50. Steps in calculating general risk Capital charge
8.51. Positions in currencies
8.52. Binding unilateral promises
8.53. Swaps
8.54. Shari’ah-compliant hedging instruments
8.55. Criteria for matching Shari’ah-compliant hedging instrument positions
8.56. Criteria for offsetting Shari’ah-compliant hedging instrument positions
8.57. Market risk Capital charges for Islamic financial contracts
8.58. Treatment of murabahah and related contracts
8.59. Treatment of bai bithaman ajil
8.60. Treatment of salam and related contracts
8.61. Treatment of istisna without parallel istisna
8.62. Treatment of istisna with parallel istisna
8.63. Treatment of ijarah and related contracts
8.64. Treatment of diminishing musharakah
8.65. Treatment of mudarabah
8.66. Treatment of qardh
8.67. Treatment of wakalah
9. OPERATIONAL RISK
10. LIQUIDITY RISK
11. GROUP RISK
12. TREATMENT OF SUKUK
13. TREATMENT OF PSIAS AND ASSOCIATED RISKS
14. SUPERVISORY REVIEW AND EVALUATION PROCESS
15. PUBLIC DISCLOSURE REQUIREMENTS
APPENDIX 1: LIQUIDITY RISK
APPENDIX 2: GROUP RISK
APPENDIX 3: SUPERVISORY REVIEW AND EVALUATION PROCESS
APPENDIX 4: PUBLIC DISCLOSURES REQUIREMENTS
14. GLOSSARY
ISLAMIC FINANCE RULES
TAKAFUL AND RETAKAFUL PRUDENTIAL RULES
REPRESENTATIVE OFFICE RULES
AIFC AUDITOR RULES
AIFC Financial Technology Rules
COOPERATION AND EXCHANGE OF INFORMATION RULES
TERMS AND PROCEDURE FOR CURRENCY TRANSACTIONS
FINANCIAL SERVICES EXEMPT FROM CORPORATE TAX
GLOSSARY
FEES RULES
RULES ON CURRENCY REGULATION AND PROVISION OF INFORMATION ON CURRENCY TRANSACTIONS IN THE AIFC
RULES ON THE SUBSTANTIAL PRESENCE OF THE AIFC PARTICIPANTS APPLYING TAX EXEMPTIONS FOR THE PAYMENT OF CIT, VAT
MULTILATERAL AND ORGANISED TRADING FACILITIES RULES
AIFC RECOVERY AND RESOLUTION RULES
AIFC RULES ON DIGITAL ASSET ACTIVITIES
RULES AND MECHANISMS OF COOPERATION OF UNBACKED DIGITAL ASSET EXCHANGES AND/OR CENTRE PARTICIPANTS AUTHORIZED TO CARRY OUT DIGITAL ASSETS-RELATED ACTIVITIES WITH SECOND-TIER BANK OF THE REPUBLIC OF KAZAKHSTAN
POLICIES AND POLICY STATEMENTS
NOTICES
GUIDANCE
TEMPLATE
CONSULTATION PAPERS
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7.13. Powers of AFSA
8.1. General
8.1. General
8.2. Role of governing body—market risk
8.3. Relation to stress-testing
8.4. Requirements—Capital and management of market risk
8.5. Trading Book
8.6. No switching of instruments between books
8.7. Market Risk Management Policy
8.8. Trading Book Policies
8.9. Measurement of market risk - Standard method
8.10. Valuing positions—mark-to-market
8.11. Valuing positions—mark-to-model
8.12. Independent price verification
8.13. Valuation adjustments
8.14. Foreign exchange risk
8.15. What to include in foreign exchange risk
8.16. Foreign exchange risk on consolidated basis
8.17. Capital charge—foreign exchange risk
8.18. Valuing positions—binding unilateral promises
8.19. Options risk
8.20. Measuring options risk
8.21. Using simplified approach
8.22. Capital charges—‘long cash and long put’ or ‘short cash and long call’
8.23. Capital charges—‘long put’ or ‘long call’
8.24. Using delta-plus method
8.25. Relation to mark-to-market method
8.26. Capital charges—options
8.27. Gamma Capital charges
8.28. Vega Capital charges
8.29. Commodities risk and inventory risk
8.30. Measuring commodities risk
8.31. Measuring net positions
8.32. What to include in commodities risk
8.33. Assigning notional positions to maturities
8.34. Capital charges—simplified approach
8.35. Relation to market risk
8.36. Measuring inventory risk
8.37. Equity position risk
8.38. Measuring equity position risk
8.39. What to include in equity position risk
8.40. Charges for specific and general risks
8.41. Offsetting positions
8.42. Charges for index contracts
8.43. Profit rate risk in the trading book
8.44. What to include in profit rate risk
8.45. Capital charge—profit rate risk
8.46. Calculating specific risk Capital charge
8.47. Instruments that have no specific risk Capital charge
8.48. Measuring general risk
8.49. Maturity method
8.50. Steps in calculating general risk Capital charge
8.51. Positions in currencies
8.52. Binding unilateral promises
8.53. Swaps
8.54. Shari’ah-compliant hedging instruments
8.55. Criteria for matching Shari’ah-compliant hedging instrument positions
8.56. Criteria for offsetting Shari’ah-compliant hedging instrument positions
8.57. Market risk Capital charges for Islamic financial contracts
8.58. Treatment of murabahah and related contracts
8.59. Treatment of bai bithaman ajil
8.60. Treatment of salam and related contracts
8.61. Treatment of istisna without parallel istisna
8.62. Treatment of istisna with parallel istisna
8.63. Treatment of ijarah and related contracts
8.64. Treatment of diminishing musharakah
8.65. Treatment of mudarabah
8.66. Treatment of qardh
8.67. Treatment of wakalah
