Where should the free delivery exposures meeting the eligibility as per Article 379 CRR, table 2, column 4 (i.e. getting a 1250% risk weight) be reported in template C 07.00?
In taxonomy 18.104.22.168, the validation rule e4894_n says that the row 270 for the RW bucket 1250% should be empty. The Article 379 CRR says that the free deliveries exposures from institution eligible as per table 2, column 4 should get 1250%. This seems inconsistent.
Free delivery exposures that attract a risk weight of 1 250% according to Article 379 (1), table 2, column 4 of Regulation (EU) No 575/2013 (CRR).
Where the counterparty is an institution, the free delivery exposures shall, for the purposes of the breakdown by risk weights, be allocated to row 270 of sheet 007 of template C 07.00 of Annex I to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting), unless they are deducted from own funds in accordance with Articles 379 (3) and 36 (1) (k) of Regulation (EU) No 575/2013 (CRR).
In accordance with this, row 270 will be dropped from the scope of validation rule e4894_n in a future revision of the ITS on Supervisory Reporting.