- Question ID
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2021_6066
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Leverage ratio
- Article
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429(6) and 429g
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
-
n.a.
- Name of institution / submitter
-
Andrea Turla
- Country of incorporation / residence
-
Italy
- Type of submitter
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Individual
- Subject matter
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Calculation of the exposure value of regular-way purchases and sales awaiting settlement
- Question
-
Should a Regular Way operation (under settlement date accounting and DVP) that doesn't have an underlying security but mere currency be reported in row 188? In other words, is the presence of a security mandatory to qualify what has to be reported in rows 188/189?
- Background on the question
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Definition of Regular Way seems different between BASEL III and CRR.
In reporting rows 188/189, template C 47.00, article 429(6) states that "for the purposes of point (e) of paragraph 4 of this Article and Article 429g, ‘regular-way purchase or sale’ means a purchase or a sale of a security under contracts for which the terms require delivery of the security within the period established generally by law or convention in the marketplace concerned". Point 30 of "Leverage Ratio" in the document "Basel III: Finalising post-crisis reforms" instead points out that "For the purpose of the leverage ratio exposure measure, banks using trade date accounting must reverse out any offsetting between cash receivables for unsettled sales and cash payables for unsettled purchases of financial assets that may be recognised under the applicable accounting framework". Thus it seems that CRR definition considers only securities, while Basel III uses a wider definition of financial assets.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
The question has been rejected because the legal basis it refers to has been amended / revised and the issue it raises [has been clarified in / is no longer relevant] in the light of [legal reference] / [legal act and/or Commission Delegated or Implementing Act, EBA technical standard or EBA guideline]. The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts. For further information on the purpose of this tool and on how to submit questions, please see 'Additional background and guidance for asking questions'.
- Status
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Rejected question