Question ID:
2013_157
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Market risk
Article:
341, 342, 343, 344
Paragraph:
1
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Article/Paragraph:
N/A
Disclose name of institution / entity:
No
Type of submitter:
Investment firm
Subject Matter:
Scope of application of Articles 341 to 344 of Regulation (EU) No. 575/2013 (CRR)
Question:

Article 341 starts with "The institution shall separately sum all its net long positions and all its net short positions in accordance with Article 327.". Does "all positions" also include positions in the banking book, or are Articles 341-344 only valid for positions in the trading book?

Background on the question:

Would like certainty about the scope of application of Articles 341 to 344.

Date of submission:
14/08/2013
Published as Final Q&A:
15/11/2013
EBA Answer:

Articles 341 to 344 of Regulation (EU) No. 575/2013 (CRR), which specify the treatment of equity positions for market risk purposes, only refer to positions in equity instruments booked in the trading book.

According Article 92(3)(b) of the CRR, the notion of "position risk" used to determine the own fund requirements for positions in debt and equity instruments, is indeed applicable only to the trading book.

Status:
Final Q&A
Answer prepared by:
Answer prepared by the EBA.
Note to Q&A:
Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR) and continues to be relevant.
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