(4)Irrespective of the nature and cash flows of a derivative transaction, the interest rates used to discount the cash flows of the transaction (‘the discount rate’) should not be considered as a material risk driver. Requiring institutions to take into account the discount rate in the method for identifying derivative transactions with only one material risk driver would be disproportionate and burdensome, as empirical experience shows that that risk driver has usually a more limited effect on the value of derivative transactions than the other risk drivers from which their cash flows are derived.