1.The alternative standardised approach as set out in this Chapter shall be used only for the purposes of the reporting requirement laid down in Article 430b(1).
2.Institutions shall calculate the own funds requirements for market risk in accordance with the alternative standardised approach for a portfolio of trading book positions or non-trading book positions that are subject to foreign exchange or commodity risk as the sum of the following three components:
the own funds requirement under the sensitivities-based method set out in Section 2;
the own funds requirement for the default risk set out in Section 5 which is only applicable to the trading book positions referred to in that Section;
the own funds requirement for residual risks set out in Section 4 which is only applicable to the trading book positions referred to in that Section.
8.EBA shall develop draft regulatory technical standards to specify the assessment methodology under which competent authorities conduct the verification referred to in paragraph 7;
EBA shall submit those draft regulatory technical standards to the Commission by 10 July 2028.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.