Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

Status: This chapter was amended on 31 December 2020 as a result of Brexit. However, it is subject to the FCA Prudential Transitional Direction, which means that firms should not comply with these provisions yet. Instead, firms must follow this link and continue to comply with pre-IP completion day requirements (unless specified otherwise in the Direction). To see a full list of Handbook modules affected, please see Section B of the Annex to the Direction.

BIPRU 13.1 Application and Purpose



1BIPRU 13 applies to a BIPRU firm.


  1. (1)

    BIPRU 13 applies to items in the non-trading book.

  2. (2)

    BIPRU 13 applies to trading book items for the purposes of BIPRU 14.


The requirement to calculate the counterparty credit risk capital charge for trading book items is set out in BIPRU 14.



Pursuant to the third paragraph of article 95(2) of the UK CRR3, BIPRU 13 applies requirements that correspond to3:

  1. (1)

    Article 78(2) and (4);

  2. (2)

    point 3 of Part 1, and Parts 2, 3, 5, 6 and 7 of Annex III; and

  3. (3)

    Annex IV;

of the Banking Consolidation Directive.


BIPRU 13.3 sets out the calculations of exposure values for financial derivative instrument, long settlement transactions and certain other transactions under the standardised approach and, subject to BIPRU 4, under the IRB approach. BIPRU 13.4, 13.5 and 13.6 set out the provisions relating to the CCR mark to market method, the CCR standardised method and the CCR internal model method in turn.


BIPRU 13.8 sets out a summary of the treatment of securities financing transactions.