Basic Conditions of Employment Act, 1997
R 385
Banks Act, 1990 (Act No. 94 of 1990)RegulationsRegulations relating to Banks' Financial Instrument TradingChapter 2 : General6. Specific and general risk |
| (1) | Specific and general risk includes the position risk on traded loan stock or securities (or derivatives thereof), which shall be divided into two components for purposes of calculation of the capital requirement. |
| (2) | The first component shall be the specific risk component, that is, the risk of a price change in the underlying instrument owing to factors related to the issuer of the instrument, or, in the case of a derivative, the issuer of the underlying instrument. |
| (3) | The second component shall be the general risk component, that is, the risk of a price change in the underlying instrument owing (in the case of a traded loan-stock instrument or loan-stock derivative) to a change in the level of interest rates or (in the case of a security or security derivative) to a broad market movement unrelated to any specific attributes of the individual securities. |
