Institutions may use the minimum spread, carry and outright rates set out in the following Table 2 instead of those indicated in Article 359 provided that the institutions:
(a)undertake significant commodities business;
(c)are not yet in a position to use internal models for the purpose of calculating the own funds requirement for commodities risk.
(b)have an appropriately diversified commodities portfolio;portfolio.
| Precious metals (except gold) | Base metals | Agricultural products (softs) | Other, including energy products
Spread rate (%) | 1,0 | 1,2 | 1,5 | 1,5
Carry rate (%) | 0,3 | 0,5 | 0,6 | 0,6
Outright rate (%) | 8 | 10 | 12 | 15
Institutions shall notify the use they make of this Article to their competent authorities together with evidence of their efforts to implement an internal model for the purpose of calculating the own funds requirement for commodities risk.authorities.