Version in force , Inserted +991 −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 72j is a newly inserted provision that allows institutions to decide not to deduct a designated portion of their trading book holdings of eligible liabilities instruments, up to 5% of Common Equity Tier 1 items after applying Articles 32 to 36, provided the holdings are in the trading book and held no longer than 30 business days.
It further states that amounts not deducted under this exception are subject to own funds requirements for trading book items, and that if the stated conditions cease to be met, the holdings must be deducted under Article 72g without applying the exceptions in Articles 72h and 72i.
Cited: Art. 72j, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex
Inserted in this version 02013R0575-20190627
Article 72j Trading book exception from deductions from eligible liabilities items 1. Institutions may decide not to deduct a designated part of their direct, indirect and synthetic holdings of eligible liabilities instruments, that in aggregate and measured on a gross long basis is equal to or less than 5 % of the Common Equity Tier 1 items of the institution after applying Articles 32 to 36, provided that all the following conditions are met: (a) the holdings are in the trading book; (b) the eligible liabilities instruments are held for no longer than 30 business days. 2. The amounts of the items that are not deducted pursuant to paragraph 1 shall be subject to own funds requirements for items in the trading book. 3. Where, in the case of holdings not deducted in accordance with paragraph 1, the conditions set out in that paragraph cease to be met, the holdings shall be deducted in accordance with Article 72g without applying the exceptions laid down in Articles 72h and 72i.