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Chapter 6 · Counterparty credit risk  ›  Section 5 · Standardised Method › Article 279

Treatment of Collateral

For the determination of risk positions, institutions shall treat collateral as follows:

(a)

collateral received from a counterparty shall be treated as a claim on the counterparty under a derivative contract (long position) that is due on the day the determination is made;

(b)

collateral it has posted with the counterparty shall be treated as an obligation to the counterparty (short position) that is due on the day the determination is made.

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