You are viewing MAR 10A.4 Procedures for calculation as it appeared on 01/01/2027. The current version of MAR 10A.4 Procedures for calculation was last updated on 01/01/2027 .

MAR 10A.4 Procedures for calculation

01/01/2027R
  1. (1) The calculation for the purposes of the annual threshold test in MAR 10A.3.1R must:
    1. (a) be determined by reference to the 3 relevant calculation periods preceding the date of calculation;
    2. (b) compare the simple average of the resulting annual values with the threshold in MAR 10A.2.1R; and
    3. (c) be carried out annually in the first quarter of the calendar year that follows an annual calculation period.
  2. (2) The calculation for the purposes of the trading test in MAR 10A.3.2R must:
    1. (a) be based on a simple average of the daily trading activities during the 3 relevant calculation periods preceding the date of calculation;
    2. (b) compare the simple average of the resulting annual values with the threshold in MAR 10A.2.2R(1); and
    3. (c) be carried out annually in the first quarter of the calendar year that follows an annual calculation period.
  3. (3) The calculation for the purposes of the capital employed test in MAR 10A.3.3R must:
    1. (a) be based on a simple average of the estimated capital allocated to daily trading activities during the 3 relevant calculation periods preceding the date of calculation;
    2. (b) compare the simple average of the resulting annual values with the threshold in MAR 10A.2.2R(2); and
    3. (c) be carried out annually in the first quarter of the calendar year that follows an annual calculation period.
01/01/2027G
  1. (1) Where currency conversion is necessary, for example, when converting notional exposure to GBP for the purposes of the annual threshold test, firms should use the Bank of England rate or other similar widely used rates.
  2. (2) Where the average of the aggregated month-end outstanding notional value is required to be calculated, the relevant month-end rate should be used for each of the previous 12 months.
01/01/2027R

A person does not breach MAR 10A.2.1R or MAR 10A.2.2R during the period in which it performs a calculation in accordance with MAR 10A.4.1R.

Point In Time
01/01/2027