Version in force , Inserted +1,127 −0§
Amended by Regulation (EU) 2019/876 32019R0876 on EUR-Lex (external, EUR-Lex)
Not in every listWhat this means
Found in the text, but not every source lists it — the text comparison and the amending act's instructions found this change; the EU's own amendment metadata does not list it. The source that does not name it is the EU's own amendment metadata. All are shown; none is overruled.
Explanation, written by a model and checked against the cited text
This is a newly added article setting out a process institutions may use to calculate own funds requirements for market risk on underwriting positions in debt or equity instruments.
It specifies a table of multiplying factors keyed to business days since an institution becomes unconditionally committed to a known quantity of securities at an agreed price, to be applied to net sensitivities of underwriting positions per issuer, excluding those subscribed or sub-underwritten by third parties under formal agreements, and it requires institutions to notify competent authorities when using this process.
Cited: Art. 325k, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex
Inserted in this version 02013R0575-20190627
Article 325k Underwriting positions 1. Institutions may use the process set out in this Article for calculating the own funds requirements for market risk of underwriting positions of debt or equity instruments. 2. Institutions shall apply one of the appropriate multiplying factors listed in Table 1 to the net sensitivities of all the underwriting positions in each individual issuer, excluding the underwriting positions which are subscribed or sub-underwritten by third parties on the basis of formal agreements, and calculate the own funds requirements for market risk in accordance with the approach set out in this Chapter on the basis of the adjusted net sensitivities. Table 1 Business day 0 0 % Business day 1 10 % Business days 2 and 3 25 % Business day 4 50 % Business day 5 75 % After business day 5 100 % For the purposes of this Article, business day 0 means the business day on which the institution becomes unconditionally committed to accepting a known quantity of securities at an agreed price. 3. Institutions shall notify the competent authorities of the application of the process set out in this Article.