The rule in plain words
Market share must be between 0.000001 and 1.
EBA checks it for seven rows: derivatives held for trading - OTC, derivatives held for trading - non-OTC, secondary markets / trading (held-for-trading only), primary Markets / underwriting, other services / activities / functions (1), other services / activities / functions (2) and other services / activities / functions (3). That makes seven 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.
Market share: 0.000001 <= Derivatives held for trading - non-OTC and Derivatives held for trading - non-OTC <= 1
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value outside the range in these cells.
- 03If the value is a percentage, EBA expects it as a decimal: 12% is reported as 0.12.
- 04EBA compares the values exactly here: there is no rounding tolerance.
- 05It runs only when your filing indicators mark Z 07.01.4 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
Criticality assessment of economic functions (FUNC 1 CM) (Z 07.01.4)
Rows
- 0250Derivatives held for trading - OTC
- 0260Derivatives held for trading - non-OTC
- 0270Secondary markets / trading (held-for-trading only)
- 0280Primary Markets / underwriting
- 0290Other services / activities / functions (1)
- 0300Other services / activities / functions (2)
- 0310Other services / activities / functions (3)
Column
- 0020Market share
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}.
1e-06 <= {Z_07.01.4,r0260,c0020,} and {Z_07.01.4,r0260,c0020,} <= 1The next five:
1e-06 <= {Z_07.01.4,r0250,c0020,} and {Z_07.01.4,r0250,c0020,} <= 11e-06 <= {Z_07.01.4,r0290,c0020,} and {Z_07.01.4,r0290,c0020,} <= 11e-06 <= {Z_07.01.4,r0270,c0020,} and {Z_07.01.4,r0270,c0020,} <= 11e-06 <= {Z_07.01.4,r0300,c0020,} and {Z_07.01.4,r0300,c0020,} <= 11e-06 <= {Z_07.01.4,r0310,c0020,} and {Z_07.01.4,r0310,c0020,} <= 1And 1 more, the same formula for the other cells it covers.
Other rules on Z 07.01.4
- A check on criticality assessment of economic functions (FUNC 1 CM) (v90346_m)Not run yet
- None of the twelve values it checks in criticality assessment of economic functions (FUNC 1 CM) can be negative (v90227_s)Warning
- None of the eight values it checks in criticality assessment of economic functions (FUNC 1 CM) can be negative (v90226_s)Warning
- Number of counterparties cannot be negative (v90225_s)Warning
- None of the ten values it checks in criticality assessment of economic functions (FUNC 1 CM) can be negative (v90224_s)Warning
- Market share cannot be negative (v90223_s)Warning
- A check on criticality assessment of economic functions (FUNC 1 CM) (e7515_e)Not run yet
Every RESOL2 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.
