EBA · 2024_7076 Rejected question

Trading desk requirements for Standardized approach perimeter

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
104b, para. 2
Topic
Market risk
Submitted by
Consultancy firm
Submitted
2024-04-30
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Question

Could you please confirm whether all desks in the prudential perimeter, independently from the internal model or standardized approach, should respect the requirements for trading desks reported in Article 104b and other provisions for trading desks?

Background

Article 4 par. 144 CRR2/CRR3 provides the definition of the trading desk without referring neither to internal model approach nor to standardized approach. Article 104b CRR2/CRR3, which defines requirements for the trading desk, refers in par. 1 to the perimeter calculated under A-IMA approach (Article 325 par. 1, point (b)), implying that the requirements apply exclusively to internal model desks. This is also confirmed by EBA/RTS/2023/05 on Assessment Methodology in paragraph 2.1. However, Art. 455 par. 1 (d) requires to provide general description of the desk structure not covered by internal models in accordance with Article 104b, implying that also desks calculated with standardized approach should comply with the provision included in the Article 104b for the trading desks.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2024_7076

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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