Written Credit Derivatives Add-On MR/NR Netting

The effective notional amount of a written credit derivative that commits to pay in a restructuring event should not be reduced by the effective notional amount of a purchase credit derivative that does not offer the same protection. In other words, the purchased credit derivative should always offer at least the same protection. Therefore, if a written credit derivative commits to pay in a number of  credit events (e.g. restructuring), and with all other terms being the same, a purchased credit derivative should also cover at least the same credit events in order to be considered subject to the same or more conservative material terms ranking pari passu for the purpose of Article 429a(5)(a) 429d(3)(b) CRR, as further described in. Article 429d(4) CRR . Conversely, if a written credit derivative does not commit to pay in a given credit event (e.g. restructuring) , and with all other terms being the same, a purchased credit derivative may (but does not need to) commit to pay in this given credit event to be considered subject to the same or more conservative material terms ranking pari passu for the purpose of Article 429a(5)(a) 429d(3)(b) CRR.