Version in force , Inserted +1,021 −0§
Amended by Regulation (EU) 2019/876 32019R0876 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
Article 72h is an entirely new provision setting out how institutions that do not use the exception in Article 72j must carry out the deductions referred to in points (c) and (d) of Article 72e(1), covering holdings of eligible liabilities instruments of other G-SII entities.
It sets conditions under which net long positions in the same underlying exposure may be used for calculating direct, indirect and synthetic holdings, and a rule for determining the deductible amount for holdings of index securities by looking through to the underlying eligible liabilities instruments.
Cited: Art. 72h, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex
Inserted in this version 02013R0575-20190627
Article 72h Deduction of holdings of eligible liabilities of other G-SII entities Institutions not making use of the exception set out in Article 72j shall make the deductions referred to in points (c) and (d) of Article 72e(1) in accordance with the following: (a) they may calculate direct, indirect and synthetic holdings of eligible liabilities instruments on the basis of the net long position in the same underlying exposure, provided that both the following conditions are met: (i) the maturity date of the short position is either the same as, or later than the maturity date of the long position or the residual maturity of the short position is at least one year; (ii) either both the long position and the short position are held in the trading book or both are held in the non-trading book; (b) they shall determine the amount to be deducted for direct, indirect and synthetic holdings of index securities by looking through to the underlying exposure to the eligible liabilities instruments in those indices.