[X1 Article 356 U.K. Ancillary commodities business
1 . Institutions with ancillary agricultural commodities business may determine the own funds requirements for their physical commodity stock at the end of each year for the following year where all of the following conditions are met:
( a ) at any time of the year it holds own funds for this risk which are not lower than the average own funds requirement for that risk estimated on a conservative basis for the coming year;
( b ) it estimates on a conservative basis the expected volatility for the figure calculated under point (a);
( c ) its average own funds requirement for this risk does not exceed 5 % of its own funds or EUR 1 million and, taking into account the volatility estimated in accordance with (b), the expected peak own funds requirements do not exceed 6,5 % of its own funds;
( d ) the institution monitors on an ongoing basis whether the estimates carried out under points (a) and (b) still reflect the reality.
2 . Institutions shall notify to the competent authorities the use they make of the option provided in paragraph 1. ]