Question
Should the gold sensitivities of instruments related to unallocated gold, as calculated under the alternative standardized approach for market risk, be included in commodity risk or foreign exchange risk?
Background on the question
An unallocated gold account is a custody arrangement in which investors hold a claim to gold, but not to specific bars. Article 325as, which establishes the buckets for the “Commodity” asset class, designates bucket 7 as the category for precious metals, including gold. Under the simplified method, gold is included in foreign exchange risk, as specified in Article 352.
Answer
This question has been rejected because EBA guidance or clarification is not needed. This can be the case where harmonisation of practices through the Q&A process is not considered necessary; or that the issue is not material, for example because it is considered to be relevant only to a limited set of institutions or other stakeholders.The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.