Scope and structure of the alternative standardised approach
Institutions shall calculate the own funds requirements for market risk in accordance with the alternative standardised approach for a portfolio of trading book positions or non-trading book positions that are subject to foreign exchange or commodity risk as the sum of the following three components:
the own funds requirement under the sensitivities-based method set out in Section 2;
the own funds requirement for the default risk set out in Section 5 which is only applicable to the trading book positions referred to in that Section;
the own funds requirement for residual risks set out in Section 4 which is only applicable to the trading book positions referred to in that Section.