Equity risk
Hola!
The wiki mentions "conditions for a hedge to qualify (for being recognized in the calculation of equity margin)". Does that mean that futures, forwards & swaps have to qualify to include them in the sum(market value of equities)? I thought that an hedge is to reduce risk, so should not be included if qualifies...
Thank in advance for clarifying 
Comments
To qualify here refers to qualifying for the lower capital requirement. If you are a qualifying hedge, then you would calculate your capital required as per 5.3.4.1 and 5.3.4.2. If not, then you would need to add additional capital on top of that. You would not include qualifying hedge in sum(MV of equities)
So in other words... Forwards, future and swaps are always included in the calculation of equity margin. The distinction is that if they are recognized as hedge, they are not considered in sum(MV of equities) but instead have their own formula, which is excluded from syllabus, and would result in a lower capital requirement.
Thank you!
Yes that is right!