Document ID: chunk:federal_register_of_legislation:F2023L01436:body:0:p5
Version: federal_register_of_legislation:F2023L01436
Segment Type: other
Provision Reference: 
Character Range: 10837–13789

below for column 5 Credit equivalent amount).
    Credit equivalent amount (CEA) means the on-balance sheet equivalent of an off-balance sheet exposure. These include all market-related transactions held in the banking and trading books that give rise to off-balance sheet credit risk and are eligible for the current exposure method. Refer to Attachment E of APS 180 for details of how to calculate CEAs for various types of transactions under the current exposure method.
    Credit rating grade has the meaning given in APS 001.
    Current exposure means, for each type of market-related off-balance sheet exposure, the sum of the positive mark-to-market value (or replacement cost) of each individual contract within each classification.
    Derivative has the meaning given in Prudential Standard CPS 226 Margining and risk mitigation for non-centrally cleared derivatives (CPS 226).
    Due date means the last day of the 35 calendar days provided for in paragraph 9 or, if applicable, the relevant due date under paragraph 10 or the date on a notice of extension given under paragraph 11.
    Eligible bilateral netting agreement has the meaning given in paragraph 9 of Attachment H of Prudential Standard APS 112 Capital Adequacy: Standardised Approach to Credit Risk (APS 112).
    Exchange traded derivative means a derivative that is transacted directly through an organised, licensed and regulated exchange.
    Fair value means the amount for which an asset could be exchanged, or a liability settled, between knowledgeable and willing parties in an arm's-length transaction. The fair value should be able to be determined through observation of similar transactions, quoted market prices, independent valuations or if there is no readily observable market, through the ability to liquidate the investment or through assessing the net present value of future cash flows.
    Immediate parent NOHC means an authorised NOHC, or a subsidiary of an authorised NOHC, that is an immediate parent NOHC.
    IRB ADI means an ADI with approval from APRA to use an internal ratings-based (IRB) approach to credit risk.
    Level 1 has the meaning given in APS 001.
    Level 2 has the meaning given in APS 001.
    Locally incorporated means incorporated in Australia or in a State or Territory of Australia, by or under a Commonwealth, State or Territory law.
    Long settlement transaction means a transaction where a counterparty undertakes to receive or deliver a security, a commodity, or a foreign exchange amount against cash, other financial instruments, or commodities at a contractually specified settlement or delivery date that is more than the lesser of (i) the market standard for the particular instrument, and (ii) five business days after the date on which the parties enter into the transaction.
    Netting means the process under a netting agreement of combining all relevant outstanding transactions between two counterparties