Revenue recognition Precious metals trading In 2013, The Group newly launched precious metal trading business and derives commission income, carrying charges and trading revenues from its precious metals trading services. Commission income is recognized on a trade basis based on their customers' trading volumes. The commission earned is fixed no matter how the client s open positions are ultimately settled. Additionally, the Group charges carrying charges to its customers. The commissions and carrying charges are presented in net revenues in the statement of comprehensive income. Amounts are settled with the Exchange by both the Group and the customers and the exchange then settles with any counterparty. The exchange offsets the Group s gains and losses and amounts receivable and amounts payable from the exchange are presented net on the statement of financial position as the Group and the exchange settle net. Trading gains, net include brokerage fees and margins generated from derivative trades executed with customers and other counterparties and are recognized when trades are executed. Trading gains, net also include activities where the Group acts as principal in the purchase and sale of commodities derivative instruments with customers. Trading gains, net also include activities where the Group acts as principal in the purchase and sale of individual securities, currencies, commodities or derivative instruments with customers. These transactions may be offset simultaneously with another customer or counterparty, offset with similar but not identical positions on an exchange, made from inventory, or may be aggregated with other purchases to provide liquidity intraday, for a number of days, or in some cases, particularly the precious metals business, even longer periods (during which fair value may fluctuate). Therefore, trading gains, net includes activities from the Group's operations of a proprietary commodity trades (see additional discussion in the Financial Instruments and Derivatives policy note for reve