v10703_h/ v10711_h

Should the validation rules v10703_h/ v10711_h be deactivated?

The validation rules v10703_h and v10711_h compare the exposure values between C 08.01 and C 34.07. v10703_h: [C 08.01.a] {C 34.07, r0180, c0010, s0004} = + {C 08.01.a, r0050, c0110, s0004} + {C 08.01.a, r0060, c0110, s0004} + {C 08.01.a, r0040, c0110, s0004} v10711_h: [C 08.01.a] {C 34.07, r0180, c0010, s0012} = +{C 08.01.a, r0050, c0110, s0012} + {C 08.01.a, r0060, c0110, s0012} + {C 08.01.a, r0040, c0110, s0012} According to Annex II to the ITS, section 3.9.8.2, instructions on rows '0010-0170', the CCR Exposure in C 34.07 shall be allocated to the appropriate bucket of the fixed PD scale based on the PD estimated for each obligor assigned to this exposure class, without considering any substitution due to the existence of a guarantee or a credit derivative. In C 08.01 the exposure amounts were allocated with considering substitution effect (Credit risk mitigation as defined in Article 4(1), point (5), CRR).