Arxo Findings Register · Arxo Law

ARXO-2026-0388 · Reported

Basel Framework: MAR22.23 HBR; MAR22.44 HBR_ctp

The hedge benefit ratio in MAR22.23 is not defined when a bucket has no net long and no net short JTD positions, as its denominator is then zero.

Consequence

Position: Corporate bucket: long bond on obligor X JTD 75, short equity... fully offset per MAR22.19 so net long 0 and net short 0 in all rating bands; DRC_b = max[0 - HBR*0; 0] Reading a: HBR = 0/0 undefined, DRC_b undefined/error Reading b: treat HBR as any value, 0*HBR = 0, DRC_b = 0 Difference: DRC_b either undefined or 0 (no numeric difference if convention is 0*x)

Proposed correction

Clarify or correct the cited passage so that the rule and its references give one result for the stated case.

Issued by
Basel Committee on Banking Supervision
Act
Basel Framework MAR22 (in force 2023-01-01, published 2020-03-27)
Place
MAR22.23 HBR; MAR22.44 HBR_ctp
Record
Discrepancy
Class
Text of the act
Where it arose
The text of the act
Arxo's conclusion
Confirmed
Official text
Unchanged at last check
Last checked
2026-10-31

Evidence

Reproduced by execution. Quotations are verbatim from the official material; translations are ours and marked.

The HBR is the ratio of net long JTD risk positions to the sum of net long JTD and absolute value of net short JTD risk positions:
Normative text · Basel Framework MAR22 (in force 2023-01-01, published 2020-03-27) · MAR22.23 HBR; MAR22.44 HBR_ctp · Published 2020-03-27 · retrieved 2026-10-31 · SHA-256 6867bedae225e6b45fd9cac97912ead6f6e180844063b4f875b58431de229bf3 · copy
The aggregated amount is used in the denominator of the expression of the HBR below.
Normative text · Basel Framework MAR22 (in force 2023-01-01, published 2020-03-27) · MAR22.23 HBR; MAR22.44 HBR_ctp · Published 2020-03-27 · retrieved 2026-10-31 · SHA-256 6867bedae225e6b45fd9cac97912ead6f6e180844063b4f875b58431de229bf3 · copy

How to check it without Arxo's tools

  1. Open Basel Framework MAR22 (in force 2023-01-01, published 2020-03-27) and find MAR22.23 HBR; MAR22.44 HBR_ctp. Compare the text with the quotation above. A copy is kept in this register: 6867bedae225e6b4-MAR22@2023-01-01~2020-03-27.txt (SHA-256 6867bedae225e6b45fd9cac97912ead6f6e180844063b4f875b58431de229bf3, copy of the official file).
  2. The finding holds if the quoted passages read as shown and the comparison gives the result stated at the top of this page. If it does not, write to us with the record ID.

How this finding was made

AI models read the texts, built the examples and reviewed the findings.

Responsible institutions

Reported to

DateInstitutionChannelReference
2026-10-31Basel Committee on Banking Supervisione-mailhttps://mail.google.com/mail/u/0/#sent/KtbxLthRTjRNkqRtWGvxMWmXhVdckfWkGV

Responses

No response recorded.

History

  1. 2026-10-31Confirmed by Arxo
  2. 2026-10-31Entered in the register
  3. 2026-10-31Reported to Basel Committee on Banking Supervision (e-mail)

Cite this record

Arxo Law, Arxo Findings Register, ARXO-2026-0388, https://arxo.io/findings/ARXO-2026-0388/ (status as of 2026-10-31). Data: ARXO-2026-0388.json.