Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p57
Version: federal_register_of_legislation:F2024C01107
Segment Type: other
Provision Reference: 
Character Range: 154862–157560

a Debt Net Position to an issuer is greater than 25% of the Market Participant's Liquid Capital, the risk amount is:
(a)        the relevant standard method Position Risk Factor specified in Table A5.1.2 in Annexure 5 to Schedule 1A multiplied by the amount in excess of 25%; and
(b)       if more than one series is held, the Position Risk Factor for the longest dated instrument should be applied to the excess over 25%.
(4) If the absolute value of a Debt Net Position to an individual issue/s is greater than 10% of that issue, the risk amount/s is:
(a)        the relevant standard method Position Risk Factor specified in Table A5.1.2 in Annexure 5 to Schedule 1A multiplied by the excess over 10%; and
(b)       if more than one series is held, the risk amount is the aggregate of the risk amounts calculated under paragraph (a) for each individual series.

A2.3.3 Equity and Debt method
(1) A Market Participant's issuer large exposure risk amount in relation to an issuer is based on the absolute sum of the Equity Net Positions and Debt Net Positions.
(2) If the absolute sum of the Equity Net Positions and Debt Net Positions is greater than 25% of a Market Participant's Liquid Capital, then the risk amount is the relevant standard method Position Risk Factor specified in Table A5.1.1 or Table A5.1.2 in Annexure 5 to Schedule 1A multiplied by the excess over 25% according to the following:
(a)        if the Equity Net Positions represent the greatest proportion of the aggregate Net Position, the standard method Position Risk Factor specified in Table A5.1.1 in Annexure 5 to Schedule 1A;
(b)       if the Debt Net Positions represent the greatest proportion of the aggregate Net Position:
(i)         the relevant standard method Position Risk Factor specified in Table A5.1.2 in Annexure 5 to Schedule 1A; and
(ii)       if more than one series is held, the Position Risk Factor for the longest dated instrument; or
(c)        if the Equity Net Position and Debt Net Positions are held in equal proportions, the greatest of the standard method Position Risk Factors specified in Tables A5.1.1 or A5.1.2 in Annexure 5 to Schedule 1A.

Annexure 3 to Schedule 1A: Position Risk Requirement
Note: There is no Part A3.3, A3.4, A3.7. A3.12 or A3.13 in this Annexure.

Part A3.1 Equity position risk amount

A3.1.1 Nature of equity position risk amount
The equity position risk amount in relation to a Market Participant's equity positions is the absolute sum of the individual position risk amounts for equity positions calculated for each country using the methods of calculation set out in this Annexure 3.

A3.1.2 Overview of methods
(1) The standard method is the main method for