The RtF K‐factor requirement is determined by the following formula:

K-TCD + K-DTF + K-CON

where:

K‐TCD is equal to the amount calculated in accordance with Article 26;

K‐DTF is equal to DTF measured in accordance with Article 33, multiplied by the corresponding coefficient established in Article 15(2) and

K‐CON is equal to the amount calculated in accordance with Article 39.

K‐TCD and K‐CON shall be based on the transactions recorded in the trading book of an investment firm dealing on own account, whether for itself or on behalf of a client.

K‐DTF shall be based on the transactions recorded in the trading book of an investment firm dealing on own account, whether for itself or on behalf of a client, and the transactions that an investment firm enters into through the execution of orders on behalf of clients in its own name.