Open derivatives: the format of a code or text (S.08.01, EIOPA rule BV805)

The rule in plain words

The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.

EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs two of them (BV805-1 and BV805-2), and a failure names the one that failed.

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02Compare the code or text in your return with the format the rule sets out, character by character, including any prefix and any spaces.
3. 03It runs only when your filing indicators mark S.08.01 as reported.
4. 04This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.

The cells it reads

Which returns it applies to

Line4 Check runs it on quarterly solo (QRS), quarterly group (QRG) and quarterly branch (QRB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to quarterly group (QRG), annual group (ARG), annual ECB solo (AES), quarterly ECB solo (QES), quarterly ECB branch (QEB), annual ECB branch (AEB), quarterly solo (QRS), quarterly branch (QRB), annual solo (ARS) and annual branch (ARB) returns, as a warning.

EIOPA’s own words and formula

In EIOPA’s list of validations, word for word:

If the item "valuation method" in S.08.01 - Open Derivatives is equal to the "Quoted market price in active markets for the same assets or liabilities" then the CIC should not be equal to 'XT##' or 'XL##'.

Other rules on Open derivatives (S.08.01)

Every Solvency II rule on S.08.01

Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.