The bank must capture as market risk the default, interest rate, credit spread, equity, FX and commodity risk of trading book instruments, plus FX and commodity risk in the banking book, which is booked to notional trading desks (MAR11.1, MAR12.6). Capital requirements must be met continuously, including at each business day close, with no window-dressing on reporting dates and immediate remediation of any shortfall (MAR11.2). Capital instruments deducted from capital or weighted at 1250% stay outside the framework (MAR11.5), and requirements apply on a worldwide consolidated basis (MAR11.6). Every bank computes the standardised approach, and an IMA bank must also compute it for all desks and for each IMA desk as a standalone portfolio (MAR11.8); securitisations and non-look-through funds always use it (MAR11.9). Desks are bank-defined but supervisor-approved, each backed by a policy document (MAR12.2). Each desk needs one head trader (at most two with separated or hierarchical roles), accounts assigned to a single desk, a defined risk scope, a senior management reporting line, a documented strategy with annual budget and MI on revenue, costs and RWA, limits reviewed at least annually, and at least weekly risk reports (MAR12.4). Inventory ageing, daily limit, intraday limit and market liquidity reports must be available for supervisors (MAR12.5).
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.