Question
Are spot instrument on unallocated Gold subject to counterparty risk?
Background on the question
Unallocated gold instrument gives a claim on gold recorded as a balance with an intermediary rather than specific bars.
Answer
The question has been rejected because EBA guidance or clarification is not considered necessary and because the question appears to seek bespoke advice on the prudential treatment of a specific type of transaction. The Q&A process is not intended to provide advice that depends on the particular contractual characteristics or circumstances of individual transactions.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”.