Question
Considering current market (EUR/USD = 1.1374 ), should an adjustment to the lower barrier level defined in Section 2.5 to be expected?
Background on the question
Instructions defined in Section 2.5 of Annex V for portfolio 1.16 (FX), set the lower barrier level at 1.20000. Considering current market rates (EUR/USD = 1.1374), the aforementioned barrier will be triggered immediately. In light of this, should an adjustment to the lower barrier level to be expected?
Answer
With regard to the barriers for portfolio 1.16 of Annex V of the Draft ITS on Supervisory Reporting for Institutions for benchmarking the internal approaches (ITS on benchmarking), no amendment is needed. The barriers are confirmed. If this trade is valued 0, institutions are requested to provide 0. If this cannot be priced, institutions should report nothing. DISCLAIMER: The present Q&A on Supervisory reporting is provisional. It will be reviewed after the Implementing Regulation is in force and published in the Official Journal, which may differ from the text of the draft ITS to which this Q&A relates.