1.   The indirect exposure value to a client arising from credit derivative contracts referred to in Article 2, point (b), shall be equal to the sum of the current market value of the credit derivative contract and the amount owed to the counterparty of the credit derivative contract as a result of a potential default of the issuer of the underlying instrument reduced by the amount owed to the institution by that counterparty in that event.

2.   Where the market value of the credit derivative is not available on a given date, institutions shall take the fair value of the credit derivative on that date. Where neither the market value, nor the fair value of the credit derivative are available on a given date, institutions shall take the most recent of the market value or the fair value. Where neither the market value, nor the fair value of a credit derivative contract is available at any date, institutions shall take the value at which the credit derivative contract is measured in accordance with the applicable accounting framework.