1.   When calculating the indirect exposure value to a client arising from other derivative contracts referred to in Article 2, point (c), including swaps, futures or forwards, institutions shall decompose their multiple transaction legs into individual transaction legs.

2.   For the transaction legs referred to in paragraph 1 entailing default risk of the issuer of the underlying instrument, institutions shall calculate their indirect exposure value as if they were positions in those legs.

3.   Where an institution is not able to apply the treatment provided for in paragraphs 1 and 2, it shall determine the indirect exposure value toward the issuer of the underlying instruments as the maximum loss that the institution would incur from a potential default of the issuer of the underlying instruments to which the derivative contract refers.