The rule in plain words
Amount cannot be more than zero.
EBA checks it for 18 rows, from (-) Permitted offsetting short positions in relation to the direct gross holdings included above (0260) to (-) Permitted offsetting short positions in relation to the synthetic gross holdings included above (0643). That makes 18 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.
(-) Permitted offsetting short positions in relation to the indirect gross holdings included above <= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark C 04.00 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
Capital adequacy - Memorandum items (C 04.00)
Rows
- 0260(-) Permitted offsetting short positions in relation to the direct gross holdings included above
- 0290(-) Permitted offsetting short positions in relation to the indirect gross holdings included above
- 0293(-) Permitted offsetting short positions in relation to the synthetic gross holdings included above
- 0330(-) Permitted offsetting short positions in relation to the direct gross holdings included above
- 0360(-) Permitted offsetting short positions in relation to the indirect gross holdings included above
- 0363(-) Permitted offsetting short positions in relation to the synthetic gross holdings included above
- 0400(-) Permitted offsetting short positions in relation to the direct gross holdings included above
- 0430(-) Permitted offsetting short positions in relation to the indirect gross holdings included above
- 0433(-) Permitted offsetting short positions in relation to the synthetic gross holdings included above
- 0470(-) Permitted offsetting short positions in relation to the direct gross holdings included above
- 0500(-) Permitted offsetting short positions in relation to the indirect gross holdings included above
- 0503(-) Permitted offsetting short positions in relation to the synthetic gross holdings included above
- 0540(-) Permitted offsetting short positions in relation to the direct gross holdings included above
- 0570(-) Permitted offsetting short positions in relation to the indirect gross holdings included above
- 0573(-) Permitted offsetting short positions in relation to the synthetic gross holdings included above
- 0610(-) Permitted offsetting short positions in relation to the direct gross holdings included above
- 0640(-) Permitted offsetting short positions in relation to the indirect gross holdings included above
- 0643(-) Permitted offsetting short positions in relation to the synthetic gross holdings included above
Column
- 0010Amount
A worked example
The first of its checks, with simple numbers.
(-) Permitted offsetting short positions in relation to the indirect gross holdings included above can then be at most 0.
A file that reports 0 passes. One that reports 100 fails, by 100.
The numbers are illustrative.
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}.
{C_04.00,r0290,c0010,} <= 0The next five:
{C_04.00,r0360,c0010,} <= 0{C_04.00,r0430,c0010,} <= 0{C_04.00,r0330,c0010,} <= 0{C_04.00,r0570,c0010,} <= 0{C_04.00,r0540,c0010,} <= 0And 12 more, the same formula for the other cells it covers.
Other rules on C 04.00
- A balancing check on capital adequacy: Memorandum items (row 0145, v0251_m)Warning
- Synthetic holdings of T2 capital of financial sector entities where the institution has a significant investment must equal the sum of its two parts (v0250_m)Warning
- Indirect holdings of T2 capital of financial sector entities where the institution has a significant investment must equal the sum of its two parts (v0249_m)Warning
- Direct holdings of T2 capital of financial sector entities where the institution has a significant investment must equal the sum of its two parts (v0248_m)Warning
- Holdings of T2 capital of financial sector entities where the institution has a significant investment, net of short positions must equal the sum of its three parts (v0247_m)Warning
- Synthetic holdings of AT1 capital of financial sector entities where the institution has a significant investment must equal the sum of its two parts (v0246_m)Warning
- Indirect holdings of AT1 capital of financial sector entities where the institution has a significant investment must equal the sum of its two parts (v0245_m)Warning
- Direct holdings of AT1 capital of financial sector entities where the institution has a significant investment must equal the sum of its two parts (v0244_m)Warning
Every COREP own funds rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.