Definitions.

CFR · 2024-01-01 · US · Title 12

(a) Terms set forth in § 217.2 and used in this subpart have the definitions assigned thereto in § 217.2. (b) For the purposes of this subpart, the following terms are defined as follows: (1) A securitization position for which all or substantially all of the value of the underlying exposures is based on the credit quality of a single company for which a two-way market exists, or on commonly traded indices based on such exposures for which a two-way market exists on the indices; or (2) A position that is not a securitization position and that hedges a position described in paragraph (1) of this definition; and (3) A correlation trading position does not include: (i) A resecuritization position; (ii) A derivative of a securitization position that does not provide a pro rata share in the proceeds of a securitization tranche; or (iii) A securitization position for which the underlying assets or reference exposures are retail exposures, residential mortgage exposures, or commercial mortgage exposures. (1) A trading asset or trading liability (whether on- or off-balance sheet), (i) The position is a trading position or hedges another covered position; (ii) The position is free of any restrictive covenants on its tradability or the Board-regulated institution is able to hedge the material risk elements of the position in a two-way market; (2) A foreign exchange or commodity position, regardless of whether the position is a trading asset or trading liability (excluding any structura

official document · source cfr-2024 · id 12:§ 217.202