Recital 1

(1)Article 105 of Regulation (EU) No 575/2013 refers to the prudent valuation standards applicable to all trading book positions. However, Article 34 of that Regulation requires institutions to apply the standards of Article 105 to all assets measured at fair value. The combination of the above articles implies that the prudent valuation requirements apply to all fair-valued positions regardless of whether they are held in the trading book or not, where the term ‘positions’ refers solely to financial instruments and commodities.