Question ID
2025_7469
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Liquidity risk
Article
423
Paragraph
3
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Article/Paragraph
30 (3)
Type of submitter
Credit institution
Subject matter
Additional liquidity outflows corresponding to collateral needs resulting from the impact of an adverse market scenario.
Question

Pursuant to Article 423(3) of Regulation (EU) No 575/2013, institutions are to add an additional outflow corresponding to collateral needs that would result from the impact of an adverse market scenario on the institution's derivatives transactions if material. 

Should this be extended to include financing transactions if an outflow corresponding to collateral needs from the impact of an adverse market scenario is deemed material by an institution?

Background on the question

Article 23, Paragraph 3 of the Delegated Regulation (EU) 2015/61 states that “The credit institution shall add an additional outflow corresponding to collateral needs that would result from the impact of an adverse market scenario on the credit institution's derivatives transactions if material. This calculation shall be made in accordance with Commission Delegated Regulation (EU) 2017/208”.

Commission Delegated Regulation (EU) 2017/208 states that “Given considerations of materiality, there is an urgency to specify an additional outflow corresponding to collateral needs that would result from the impact of an adverse market scenario on the institution's derivatives transactions while the materiality of collateral needs that would result from the impact of an adverse market scenario on the institution's financing transactions and other contracts will be considered in a next step”. 

Should institutions reflect an additional outflow corresponding to collateral needs that would result from the impact of an adverse market scenario on the institution's financing transactions if deemed material (in accordance with the materiality threshold outlined in Article 1 of Commission Delegated Regulation (EU) 2017/208)? 

Submission date
Rejected publishing date
Rationale for rejection

This question has been rejected because the issue it deals with is already explained or addressed in Article 423 of the Regulation (EU) No 575/2013 as amended.

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
Rejected question