The rule in plain words

Derivatives must equal these six added up:

Credit
Equity
Foreign exchange and gold
Interest rate
Commodity
Other

EBA checks it for eight columns: financial assets held for trading and trading, financial assets measured at a cost-based method / LOCOM, financial liabilities measured at a cost-based method / LOCOM, financial liabilities held for trading and trading, positive value, negative value, total trading, and sold. That makes eight checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

Negative value: Derivatives = Credit + Equity + Foreign exchange and gold + Interest rate + Commodity + Other

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03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 10.00 as reported.
06This 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

Derivatives: trading and economic hedges (F 10.00)

Rows

0010Interest rate
0070Equity
0130Foreign exchange and gold
0190Credit
0250Commodity
0270Other
0290Derivatives

Columns

0010Financial assets Held for trading and trading
0011of which: Financial assets measured at a cost-based method / LOCOM
0016of which: Financial liabilities measured at a cost-based method / LOCOM
0020Financial liabilities Held for trading and trading
0022Positive value
0025Negative value
0030Total Trading
0040Of which: sold

A worked example

The first of its checks, with simple numbers.

Illustrative values

Credit1,200

Equity800

Foreign exchange and gold450

Interest rate300

Commodity150

Other100

Together3,000

What the rule then expects

Derivatives must then be 3,000.

3,000Passes

3,100Fails

A file that reports 3,000 passes. One that reports 3,100 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{F_10.00,r0290,c0025,} = {F_10.00,r0190,c0025,} + {F_10.00,r0070,c0025,} + {F_10.00,r0130,c0025,} + {F_10.00,r0010,c0025,} + {F_10.00,r0250,c0025,} + {F_10.00,r0270,c0025,}

The next five:

{F_10.00,r0290,c0016,} = {F_10.00,r0190,c0016,} + {F_10.00,r0070,c0016,} + {F_10.00,r0130,c0016,} + {F_10.00,r0010,c0016,} + {F_10.00,r0250,c0016,} + {F_10.00,r0270,c0016,}

{F_10.00,r0290,c0020,} = {F_10.00,r0190,c0020,} + {F_10.00,r0070,c0020,} + {F_10.00,r0130,c0020,} + {F_10.00,r0010,c0020,} + {F_10.00,r0250,c0020,} + {F_10.00,r0270,c0020,}

{F_10.00,r0290,c0011,} = {F_10.00,r0190,c0011,} + {F_10.00,r0070,c0011,} + {F_10.00,r0130,c0011,} + {F_10.00,r0010,c0011,} + {F_10.00,r0250,c0011,} + {F_10.00,r0270,c0011,}

{F_10.00,r0290,c0040,} = {F_10.00,r0190,c0040,} + {F_10.00,r0070,c0040,} + {F_10.00,r0130,c0040,} + {F_10.00,r0010,c0040,} + {F_10.00,r0250,c0040,} + {F_10.00,r0270,c0040,}

{F_10.00,r0290,c0030,} = {F_10.00,r0190,c0030,} + {F_10.00,r0070,c0030,} + {F_10.00,r0130,c0030,} + {F_10.00,r0010,c0030,} + {F_10.00,r0250,c0030,} + {F_10.00,r0270,c0030,}

And 2 more, the same formula for the other cells it covers.

Every FINREP 9 rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.

Derivatives must equal the sum of its six parts (EBA rule v6140_h)

The rule in plain words

What to do if your filing fails it

The cells it reads

A worked example

Other rules on F 10.00