The revised rules do away with the separate calculation of onshore and offshore net open positions (NOP), allow banks to include accumulated surpluses from overseas operations in , require to be maintained against actual NOP, and modify the shorthand method for measuring exposure by treating gold positions separately.
The central bank has also allowed certain to be exempted from NOP calculations. Market participants said that the exemptions will create room for additional positions and improve trading capacity for banks.
A key clarification in the final rules allows banks to exclude eligible structural from NOP calculations on both a standalone and consolidated basis.
These include capital investments and accumulated or unremitted earnings in overseas subsidiaries, branches, joint ventures and associates, provided they are non-dealing positions.
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