The rule in plain words
(-) haircuts for trading assets valued at fair value cannot be more than zero.
EBA checks it for two columns: domestic activities and non-domestic activities. 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.
Domestic activities: (-) Haircuts for trading assets valued at fair value <= 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 F 20.01 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
Geographical breakdown of assets by location of the activities (F 20.01)
Row
- 0315(-) Haircuts for trading assets valued at fair value
Columns
- 0010Domestic activities
- 0020Non-domestic activities
A worked example
The first of its checks, with simple numbers.
(-) haircuts for trading assets valued at fair value, domestic activities 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}.
{F_20.01,r0315,c0010,} <= 0The next one:
{F_20.01,r0315,c0020,} <= 0Other rules on F 20.01
- Other non-trading non-derivative financial assets must equal the sum of its three parts (row 0234, v1731_m)Warning
- Non-trading non-derivative financial assets measured at fair value to equity must equal the sum of its three parts (row 0175, v1730_m)Warning
- Non-trading non-derivative financial assets measured at fair value through profit or loss must equal the sum of its three parts (v1729_m)Warning
- Trading financial assets must equal the sum of its four parts (v1728_m)Warning
- Assets must equal the sum of its 20 parts (v0953_m)Warning
- Financial assets at fair value through other comprehensive income must equal the sum of its three parts (v0952_m)Warning
- Financial assets designated at fair value through profit or loss must equal the sum of its three parts (row 0100, v0951_m)Warning
- Financial assets held for trading must equal the sum of its four parts (row 0050, v0950_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.