Article 102 Requirements for the trading book

Positions in the trading book shall be either free of restrictions on their tradability or able to be hedged.

Trading intent shall be evidenced on the basis of the strategies, policies and procedures set up by the institution to manage the position or portfolio in accordance with Articles 103, 104 and 104a.

Institutions shall establish and maintain systems and controls to manage their trading book in accordance with Article 103.

For the purpose of calculating the own funds requirements for market risk in accordance with the approach referred to in Article 325(1), point (b), trading book positions shall be assigned to trading desks.

Positions in the trading book shall be subject to the requirements for prudent valuation specified in Article 105.

Institutions shall treat internal hedges in accordance with Article 106.