Article 429(5)(a) of Regulation (EU) No 575/2013 (CRR), as amended by the Delegated Regulation (EU) 2015/62 (DR), specifies that the leverage ratio exposure value of assets, including SFTs, should be calculated in accordance with the first sentence of Article 111(1) CRR. The counterparty credit risk add-on component should be calculated in accordance with Article 429b CRR (see Article 429(4)(c)), which provides different calculation methodologies for transactions with and without an eligible master netting agreement. As the sum of the two, the leverage ratio exposure of a single instrument may therewith exceed its accounting value. In the given example the leverage exposure value is: 100 000 EUR (the first component according to Article 111(1) CRR) + 50 000 EUR (the second component, the add-on according to Article 429b CRR) = 150 000 EUR.
Given that none of the above Articles of the CRR makes reference to Article 223 (Financial collateral comprehensive method) of the CRR, the valuation methodology provided in Article 223 of the CRR is not relevant for the calculation of the leverage ratio exposure measure for SFTs.