The rule in plain words
If the item "valuation method" in Open Derivatives (IR.08.01) 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##'
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.
This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it. It runs only when your filing indicators mark IR.08.01 as reported.
The cells it reads
Open derivatives - information on positions held (IR.08.01.01.01)
Column
- C0250Valuation method
Open derivatives - information on derivatives (IR.08.01.01.02)
Column
- C0380CIC
Which returns it applies to
Line4 Check runs it on quarterly solo (QRS) and annual solo (ARS) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to quarterly solo (QRS) and annual solo (ARS) returns, as a warning.
The Bank’s own words and formula
In the Bank of England’s list of validations, word for word:
If the item "valuation method" in IR.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##'.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
not(matches({t: IR.08.01.01.02, c: C0380, z: Z0001}, "^((XT)|(XL))..$"))Other rules on Open derivatives (IR.08.01)
- Open derivatives: a check on its values (IR_bv1629)
- Open derivatives: the format of a code or text (IR_bv1626)Blocking
- Open derivatives: the first two letters are not valid ISO3166 country code (IR_bv1674)Blocking
- Open derivatives: the first two letters are not valid ISO3166 country code (IR_bv1675)Blocking
- The item "CIC" in Open Derivatives is not valid (IR_bv1703)
- Open derivatives and securities lending and repos: the format of a code or text (IR_bv1711)Blocking
- Open derivatives: the format of a code or text (IR_bv1712)Blocking
- The item "CIC" in Open Derivatives is not valid (IR_bv1722)
Every Solvency UK rule on IR.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.