Version in force , Modified +553 −12§
Amended by Regulation (EU) 2024/1623 32024R1623 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2024/2987 32024R2987 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2024/2795 32024R2795 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
Paragraph 5 now adds an exception, stating that reclassification is irrevocable except in the exceptional circumstances referred to in paragraph 1.
A new paragraph 6 has been added allowing an institution to reclassify a non-trading book position as a trading book position under Article 104(2), point (d), without seeking permission from its competent authority, while still requiring compliance with paragraphs 3 and 4 and immediate notification to the competent authority of such a reclassification.
The earlier version contained neither this exception in paragraph 5 nor any paragraph 6.
Cited: Art. 104a, v2 (external, EUR-Lex) · Art. 104a, v1 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 9 July 2024 02013R0575-20240709 → this version, in force 1 January 2025 02013R0575-20250101
Article 104a
Reclassification of a position
1. Institutions shall have in place clearly defined policies for identifying the exceptional circumstances which justify the reclassification of a trading book position as a non-trading book position or, conversely, the reclassification of a non-trading book … 379 unchanged words … requirements immediately before the reclassification, each calculated in accordance with Article 92. The calculation shall not take into account the effects of any factors other than the reclassification.
5. The reclassification of a position in accordance with this Article shall be irrevocable. irrevocable, except in the exceptional circumstances referred to in paragraph 1.
6. By way of derogation from paragraph 1 of this Article, an institution may reclassify a non-trading book position as a trading book position pursuant to Article 104(2), point (d), without seeking permission from its competent authority. In such a case, the requirements laid down in paragraphs 3 and 4 of this Article shall continue to apply to the institution. The institution shall immediately notify its competent authority where such a reclassification has occurred.