Version in force , Modified +435 −91§
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
The heading now also references the simplified approach for calculating the own funds requirements for CVA risk, in addition to the exposure value of derivatives.
Paragraphs 2 and 3 now refer to institutions in the plural and add that ceasing and resuming the simplified methods also covers calculating own funds requirements for CVA risk under Article 385, alongside the existing references to Section 4 or 5.
Cited: Art. 273b, v2 (external, EUR-Lex) · Art. 273b, 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 273b
Non-compliance with the conditions for using simplified methods for calculating the exposure value of derivatives
and the simplified approach for calculating the own funds requirements for CVA risk
1. An institution that no longer meets one or more of the conditions set out in Article 273a(1) or (2) shall immediately notify the competent authority thereof.
2. An institution Institutions shall cease to calculate the exposure values of its their derivative positions in accordance with Section 4 or 5, 5 and to calculate the own funds requirements for CVA risk in accordance with Article 385, as applicable, within three months of the occurrence of one of the following occurring: following:
(a) the institution does not meet the conditions set out in point (a) of Article 273a(1) or (2), as applicable, or the conditions set out in point (b) of Article 273a(1) or (2), as applicable, for three consecutive months;
(b) the institution does not meet the conditions set out in point (a) of Article 273a(1) or (2), as applicable, or the conditions set out in point (b) of Article 273a(1) or (2), as applicable, for more than six of the preceding 12 months.
3. Where an institution has Institutions that have ceased to calculate the exposure values of its their derivative positions in accordance with Section 4 or 5, 5 and to calculate the own funds requirements for CVA risk in accordance with Article 385, as applicable, it shall only be permitted to resume calculating the exposure value of its their derivative positions as set out in Section 4 or 5 and the own funds requirements for CVA risk in accordance with Article 385 where it demonstrates they demonstrate to the competent authority that all of the conditions set out in Article 273a(1) or (2) (2), have been met for an uninterrupted period of one year.