PRU A6.8.10

To calculate the reduced net Underwriting position an Authorised Person must apply the reduction factors in the table below to the net Underwriting position calculated under Rule A6.8.6 as follows:

(a) in respect of debt Securities, an Authorised Person must calculate two reduced net Underwriting positions; one for inclusion in the Authorised Person's interest rate Specific Risk calculation, the other for inclusion in its interest rate General Market Risk calculation; and
(b) in respect of equities, an Authorised Person must calculate only one reduced net Underwriting position, and then include it in the simplified equity method.