- Question ID
-
2014_1167
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Market risk
- Article
-
354
- Paragraph
-
1 and 3
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
-
NA
- Type of submitter
-
Investment firm
- Subject matter
-
Own funds requirements against positions in relevant closely correlated currencies in absence of implementing technical standards
- Question
-
Is an institution allowed to apply treatment set out in article 354, paragraph 1 of CRR, in absence of implementing technical standards?
- Background on the question
-
Article 354, paragraph 1 of CRR allows to provide lower own funds requirements against positions in relevant closely correlated currencies. Exact description, when a pair of currencies is deemed to be closely correlated, is provided in the regulation. On the other hand, EBA is ordered, in article 354, paragraph 3, to develop draft implementing technical standards listing the currencies for which the treatment set out in paragraph 1 is available but the relevant ITS has not been published yet. As the way of determination of close correlation is well described, it is reasonable to allow institutions to apply rules set out in paragraph 1.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.
If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.
For further information please refer to the press release and the updated Q&A page.
- Status
-
Rejected question