- Question ID
-
2022_6596
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Liquidity risk
- Article
-
32
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
- Article/Paragraph
-
32
- Type of submitter
-
Credit institution
- Subject matter
-
Deals agreed but not yet settled
- Question
-
1) When we issue a securitiy to raise funding, between Trade date and Value date (ie: 2 days period) we expect money to be received from the counterparty for the security purchase. Can it be considered as an inflow in the LCR, as cash will be recived in 2 days?
2) When we make a money market borrowing, between Trade date and Value date (ie: 3 days period) we expect money to be received from the counterparty for the deposit. Can it be considered as an inflow in the LCR, as cash will be recived in 3 days?
If we are allowed to apply this approach, shall we apply the same approach for money market loans before settlement date (outflows as cash will be delivered to counterparty).
- Background on the question
-
To raise funding, the institution issues securities and deals money market borrowing. This question intends to clarify the methodology to apply for deals which are already contractually traded but not yet settled: What to do between trade date and value date.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
This question has been rejected because the question is not sufficiently clear, or has not sufficiently identified a provision of a legal framework covered by this tool that creates uncertainty and for which an explanation is merited in terms or practical implementation or application.
- Status
-
Rejected question
