4.4.3.9.3 Option 3

This option addresses currencies for which there are insufficient Level 1 assets, but there are sufficient Level 2A assets. In such cases, the excess Level 2A assets can be included in the stock beyond the cap for the Level 2 assets. Such assets, when included are subject to a higher haircut than the standard Level 2A haircuts.

Note:

The applicable ALA options are captured as a parameter in the SETUP_MASTER table. You can modify the default value in all the approaches supported by the application such as CBCF, ALTCCY, ALTL2A. To modify this value, update the value under the component code APPLICABLE_ALA_APPROACH_TYPE_CODE.