Commitment Approach definition

Commitment Approach means a method for calculating leverage which takes into account the exposure of the Fund to derivative instruments with the exclusion of derivative instruments which are used for reducing risk (i.e. derivative instruments used for hedging and netting purposes).

Commitment Approach means the methodology which may be used in the risk management process of certain Funds as disclosed in the relevant Supplement to calculate exposure to derivatives in accordance with the Central Bank’s requirements. The commitment approach calculates exposure as a result of the use of derivatives by converting the derivatives into the equivalent positions of the underlying assets.

Commitment Approach means the commitment approach for calculating global

Examples of Commitment Approach in a sentence

• Global Exposure using the Commitment Approach is expressed as an absolute percentage of total net assets.

• The Commitment Approach is a methodology that aggregates the underlying market or notional values of FDIs to determine the degree of global exposure of the Fund to FDIs.In accordance with the COLL Sourcebook, global exposure for a fund utilising the Commitment Approach must not exceed 100% of the Fund’s NAV.

• The ACD calculates Global Exposure using either the Value at Risk (“VaR”) approach or the Commitment Approach, depending on which methodology is considered appropriate by the ACD.

• The Manager is required by the COLL Sourcebook to employ a risk management process in respect of the Fund which enables it to accurately monitor and manage the global exposure from Financial Derivative Instruments (“FDIs”).The Manager uses a methodology known as the Commitment Approach in order to measure the global exposure of the Fund.

• The Commitment Approach performs the conversion of the financial derivatives into the equivalent positions in the underlying assets of those derivatives.

More Definitions of Commitment Approach

Commitment Approach means a methodology for calculating exposure that considers the effective exposure of deriatives to, and takes an aggregate view of, securities with the same or similar underlying exposure, where the total commitment is considered to be the sum of the absolute value of the commitment of each individual position, including derivatives after taking into account netting and hedging.

Commitment Approach means exposures to FDIs are calculated by converting the

Commitment Approach means a method for calculating leverage which takes into account the exposure of the Fund to derivative instruments with the

Commitment Approach means the commitment approach for calculating global exposure as described under "Overall Risk Exposure and Management" below. “Collateral Monitor” means RBS (Luxembourg) S.A. "Company Law"

Commitment Approach means the methodology which may be used in the risk

Commitment Approach means a method for calculating leverage which takes into account the ex posure of the Fund to deriv ative instruments with the ex clusion of derivative instruments which are used for reducing risk (i.e. deriv ative instruments used for hedging and netting purposes).

Commitment Approach means an approach that considers the market value of the assets underlying the derivative and takes an aggregate view of the absolute value of the underlying exposure; and