4- Trading Book Policy Statement (TPS) and Definition of a Trading Desk

The bank must prepare, evaluate, and have available for SAMA the following for all trading desks: (1) Inventory ageing reports; (2) Daily limit reports including exposures, limit breaches, and follow-up action; (3) Reports on intraday limits and respective utilisation and breaches for banks with active intraday trading; and (4) Reports on the assessment of market liquidity. 4.9 Any foreign exchange or commodity positions held in the banking book must be included in the market risk capital requirement as set out in [3.3] . For regulatory capital calculation purposes, these positions will be treated as if they were held on notional trading desks within the trading book.