# Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance), Article 360: Simplified approach

Extent: E+W+S+N.I.

1 . The institution's own funds requirement for each commodity shall be calculated as the sum of the following:
( a ) 15 % of the net position, long or short, multiplied by the spot price for the commodity;
( b ) 3 % of the gross position, long plus short, multiplied by the spot price for the commodity.
2 . The institution's overall own funds requirement for commodities risk shall be calculated as the sum of the own funds requirements calculated for each commodity in accordance with paragraph 1.

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Source: https://www.legislation.gov.uk/eur/2013/575/article/360 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-575/article-360
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.