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As an alternative to the use of standard estimates or self-estimates, banks can use a VaR model approach to reflect volatility in risk prices and collateral for repurchase transactions, taking into account the correlation effects between securities positions. This approach would apply to repurchase transactions covered by bilateral counterparty compensation agreements. At the discretion of national oversight, companies also have the right to use the VaR model approach for marginal lending transactions when transactions are covered by a bilateral control compensation agreement in accordance with the requirements of CRE22.69 and CRE22.70. The VaR approach is available to banks that have obtained prudential recognition for an internal market risk model in accordance with MAR30.2. Banks that have not obtained regulatory recognition for the use of MAR30.2 models may request separate prudential recognition to use their internal vaR models to calculate potential price volatility for repo transactions. Internal models are only accepted when a bank can prove to the control authority the quality of its model by testing its production using a year of historical data. Banks must meet the CRE53.29 model validation requirement in order to use VaR for similar SFT and other LFEs. In addition, other transactions similar to repo transactions (such as prime brokerage) that meet the requirements for repurchase transactions are also permitted to use the VaR model approach, provided that the model used complies with the operational requirements defined in THE CRE53.34 to CRE53.61. For the calculation of “fully adjusted risk exposure” for exposures that are intended to enter into an eligible principal clearing agreement, including pension transactions and/or securities or commodity lending or credit transactions and/or other capital market-fuelled transactions; An entity calculates volatility corrections calculated using the method to be applied in the BIPRU 5.6.6 R method to BIPRU 5.6.11 R, either using the prudential volatility adjustment approach or the own estimates of volatility adjustments in accordance with BIPRU 5.4.30 to BIPRU 5.4.65 R for the overall financial security method.