Question
Article 425(2)(f) of Regulation (EU) No 575/2013 (CRR) states "Monies due from positions in major index equity instruments provided there is no double counting with liquid assets". Which cash flows are included in this definition? Is it referred to monies due from expected dividends?
Background on the question
n.a.
Answer
In accordance with Article 425 (2) of Regulation (EU) No. 575/2013 (CRR) liquidity inflows shall be measured over the next 30 days. They are to be reported in full with the exception of specific inflows, as outlined in paragraph 2, which are to be reported separately. Point (f) of that paragraph refers to "monies due from positions in major index equity instruments provided there is no double counting with liquid assets". In line with paragraph 2, only contractual inflows from exposures that are not past due and for which the institution has no reason to expect non-performance within the 30 day time horizon are to be reported. Under point (f) of this paragraph, monies contractually due within the next 30 days, such as cash dividends on major index equity instruments and cash due from such instruments sold but not yet settled, may be included if not reported as a liquid asset in accordance with Article 416 of the CRR.