The EBA consults on draft technical standards on the specification of long and short positions under the derogations for market and counterparty risks
The EBA consults on draft technical standards on the specification of long and short positions under the derogations for market and counterparty risks
- The EBA consults on draft technical standards on the specification of long and short positions under the derogations for market and counterparty risks
The European Banking Authority (EBA) today launched a public consultation on its draft Regulatory Technical Standards (RTS) on the method for identifying the main risk driver and determining whether a transaction represents a long or a short position. - These RTS are part of the Phase 1 deliverables of the EBA roadmap on the implementation of the EU banking package in the area of market risk.
- The Capital Requirements Regulation (CRR) includes some derogations for the calculation of the capital requirements for market and counterparty credit risks, for small trading book business, derivative business or business subject to market risk.
- A position can be considered as long or short depending on how movements in its main risk driver affect the market value.