emendrix

Art. 279b

Capital Requirements Regulation · 32013R0575 · every event for this act · on EUR-Lex

Adjusted notional amount

2 changes recorded across 2 events, newest first.

in force 2021-09-30 MODIFIED+101 −41

Amended by Regulation (EU) 2021/424 32021R0424

applies from: unchanged

Sources disagree — the text comparison found this change; the EU's own amendment metadata does not list it and the amending act's instructions do not mention it. All are shown; none is overruled.

In point (a) of Article 279b(1)(1), the explicit supervisory duration factor formula line that appeared before the definitions of R, S and E has been removed, and a new defined term, OneBusinessYear, expressed as one year in business days using the relevant business day convention, has been added to the definitions following E.

Cited: Art. 279b, v1 · Art. 279b, v2

text before / after

02013R0575-2021062902013R0575-20210930

Article 279b Adjusted notional amount 1. Institutions shall calculate the adjusted notional amount as follows: (a) for transactions mapped to the interest rate risk category or the credit risk category, institutions shall calculate the adjusted notional amount as the product of the notional amount of the derivative contract and the supervisory duration factor, which shall be calculated as follows: supervisory duration factorexpRSexpRER where: R the supervisory discount rate; R = 5 %; S the period between the start date of a transaction and the reporting date, which shall be expressed in years using the relevant business day convention; and E the period between the end date of a transaction and the reporting date, which shall be expressed in years using the relevant business day convention; and OneBusinessYear = one year expressed in business days using the relevant business day convention. The start date of a transaction is the earliest date at which at least a contractual payment under the transaction, to or from the institution, is either fixed or exchanged, other than payments related to … 819 unchanged words … reporting currency at the prevailing spot exchange rate where the adjusted notional amount is calculated under this Article from a contractual notional amount or a market price of the number of units of the underlying instrument denominated in another currency.

in force 2021-06-28 INSERTED

Amended by Regulation (EU) 2019/2033 32019R2033 · Regulation (EU) 2019/876 32019R0876 · Regulation (EU) 2021/558 32021R0558 · Regulation (EU) 2020/873 32020R0873

applies from: unknown (an inserted provision states its own application date only in prose)

Sources disagree — the text comparison found this change; the EU's own amendment metadata does not list it. Both are shown; neither is overruled.

This is a newly inserted article setting out how institutions calculate the adjusted notional amount of a derivative transaction, including separate methods for transactions mapped to the interest rate, credit, foreign exchange, equity, commodity and other risk categories.

It also specifies how the notional amount or number of units of the underlying instrument is determined for transactions with variable or stochastic amounts, contracts with multiple exchanges of notional, and contracts involving multipliers, and it requires conversion of the adjusted notional amount into the institution's reporting currency at the prevailing spot exchange rate where the amount was calculated from a value denominated in another currency.

Cited: Art. 279b, v2

text before / after, on the event page →