The rule in plain words
Client orders handled - cash trades must equal COH - cash trades (average amounts).
All the values are in the factor amount column (0010).
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
I_04.00: Client orders handled - Cash trades, Factor amount = I_06.07: COH - Cash trades (average amounts), Month t
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark I 04.00 and I 06.07 as reported.
- 05This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
K-factor requirement calculations (I 04.00)
Row
- 0070Client orders handled - Cash trades
Column
- 0010Factor amount
Client orders handled - COH additional detail (I 06.07)
Row
- 0010COH - Cash trades (average amounts)
Column
- 0010Month t
A worked example
The first of its checks, with simple numbers.
COH - cash trades (average amounts) must then be 1,200.
A file that reports 1,200 passes. One that reports 1,300 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. Cells are written as {template, row, column, sheet}.
{I_04.00,r0070,c0010,} = {I_06.07,r0010,c0010,}Other rules on I 04.00
- Assets safeguarded and administered must equal total ASA (average amounts) (v11115_m)Warning
- Client orders handled, derivatives trades must equal COH, derivative (average amounts) (v11117_m)Warning
- Client money held, non-segregated must equal CMH, non-segregated (average amounts) (v11114_m)Warning
- Daily trading flow, cash trades must equal total DTF, cash trades (average amounts) (v11118_m)Warning
- Client money held, Segregated must equal CMH, Segregated (average amounts) (v11113_m)Warning
- Daily trading flow, derivative trades must equal total DTF, derivative trades (average amounts) (v11119_m)Warning
- Assets under management must equal total AUM (average amounts) (v11112_m)Warning
- Client money held must equal the sum of its two parts (v11120_m)Warning
Every IFR class 2 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.