The rule in plain words
Short positions must equal equity instruments plus debt securities.
EBA checks it for two columns: held for trading and trading. That makes two checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
Held for trading: Short positions = Equity instruments + Debt securities
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark F 08.01 as reported.
- 06This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Breakdown of financial liabilities by product and by counterparty (a) (F 08.01.a)
Rows
- 0020Short positions
- 0030Equity instruments
- 0040Debt securities
Columns
- 0010Held for trading
- 0034Trading
A worked example
The first of its checks, with simple numbers.
Short positions must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_08.01.a,r0020,c0010,} = {F_08.01.a,r0030,c0010,} + {F_08.01.a,r0040,c0010,}The next one:
{F_08.01.a,r0020,c0034,} = {F_08.01.a,r0030,c0034,} + {F_08.01.a,r0040,c0034,}Other rules on F 08.01.a
- Total financial liabilities must equal the sum of its five parts (v0829_m)Blocking
- Total financial liabilities must equal the sum of its three parts (v0830_m)Blocking
- Derivatives: held for trading must equal financial liabilities held for trading and trading (v0831_m)Warning
- Total, repurchase agreements cannot be more than the sum of 30 cells (v0912_m)Warning
- Deposits, securitisation special purpose entities plus deposits, asset management plus deposits, other activities cannot be more than the sum of ten cells (v1014_m)Warning
- An upper-limit check across related parties and breakdown of financial liabilities (F 31.01, row 0070, v1032_m)Warning
- An upper-limit check across related parties and breakdown of financial liabilities (F 31.01, row 0080, v1033_m)Warning
- Derivatives, carrying amount (all sheets added up) must equal the sum of three columns (v1740_m)Warning
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.