Guidelines
 Published Date: 01 March 2013

Guidelines on Risk Management Practices – Market Risk

Guidelines for financial institutions on managing their market risk.
Applies to: Full Bank (Branch) , Wholesale Bank (Branch) , Wholesale Bank (Locally Incorporated) , Finance Company , Merchant Bank (Locally Incorporated) , Merchant Bank (Branch) , Direct Insurer (Life) , Direct Insurer (General) , Direct Insurer (Composite) , Reinsurer (Life) , Reinsurer (General) , Reinsurer (Composite) , Captive Insurer , Lloyd's Asia Scheme , Financial Holding Company (Insurance) , Dealing in Capital Markets Products , Product Financing , Licensed Fund Management Company , Corporate Finance Advisory , REIT Management , Registered Fund Management Company , Credit Rating Agency , Securities Crowdfunding , Venture Capital Fund Management Company , Exempt Futures Broker , Exempt OTC Derivatives Broker , Providing Custodial Services , Exempt Corporate Finance Adviser Serving Accredited Investors , Approved CIS Trustee , Exempt Trust Company , Licensed Trust Company , Exempt Person Providing Trust Services , Clearing House , Credit/Charge Card Issuer , Major Payment Institution , Standard Payment Institution , Money-changing Licensee
View Document Guidelines on Risk Management Practices – Market Risk (403.1 KB)

Market risk refers to the risk to an institution resulting from movements in market prices, in particular, changes in interest rates, foreign exchange rates, credit spreads, and equity and commodity prices. These guidelines provide financial institutions with guidance on key principles of, and sound practices for market risk management. 

The guidelines cover:

  • Risk management strategy.
  • Policies and procedures for sound market risk management.
  • Measurement, monitoring and control of market risk.