Consultation on draft RTS on additional liquidity outflows

The European Banking Authority (EBA) launches today a consultation on draft Regulatory Technical Standards (RTS) on additional collateral outflows. The consultation runs until 14 August 2013.

The proposed draft RTS aim at developing methods to determine additional collateral outflows stemming from the impact of an adverse market scenario on an institution’s derivatives positions, financing transactions and other contracts, if material. In particular, these RTS focus on capturing adverse changes in market valuation of derivatives and similar transactions and contracts that require collateral.
 

These RTS propose three methods to determine the additional collateral outflows:

Additionally, the consultation paper seeks feedback on the historical look-back approach.

 

These draft RTS are expected to be submitted to the European Commission by 31 March 2014.

Background

The final comprise on the Capital Requirements Regulation and Capital Requirements Directive (CRR/CRD) provides a mandate for the EBA to develop draft RTS or ITS related to liquidity and liquidity reporting requirements.
 

These standards will be part of the Single Rulebook aiming at enhancing regulatory harmonisation in Europe.
 

Consultation process
 

Comments to the consultation paper on additional outflows can be sent to the EBA by e-mail by e-mail to EBA-CP-2013-19@eba.europa.eu by 14 August 2013, indicating the reference EBA/CP/2013/19.
 

All contributions received will be published unless you request otherwise.
 

A public hearing on the consultation on additional outflows will take place at the EBA premises on 10 July 2013 from 14:00 to 17:00 UK time. To register for this public hearing, click here