Question
How Regular Way Purchases or Sales Awaiting should be properly allocated in Pillar III EU-LR2 template?
Background on the question
The Q'n'A purpose is to statuate on the correct allocation of Regular Way Purchases or Sales Awaiting in Societe Generale Leverage Ratio process into Pillar III Societe Generale has historically choose to make distinction between Regular Way Purchases or Sales Awaiting settlement ( Trading date/ Settlement date ) according to whether the institution has an agency activity or for its own account activity. Societe Generale has opted for its own account activity to record Regular Way Purchases or Sales Awaiting as Off Balanced Sheet Exposures until the transaction settlement (settlement- date accounting) . However, Regular Way Purchases or sales Awaiting settlement for its agency activity are booked in on-balance sheet from trade date . Regular Way Purchases or Sales Awaiting are considered as On Balance Sheet exposures for Societe Generale agency activity into Leverage ratio Exposure process ( C47.00 r190) Regular Way Purchases or Sales Awaiting are considered as Off Balance Sheet exposures for Societe Generale own account activity into Leverage ratio Exposure process ( C47.00 r188) But, for the Pillar III purpose by using the EBA mapping tool , in template EU-LR2 row1, Regular Way Purchases or Sales Awaiting booked in C47.00 r188 are considered as on balance sheet exposures.
Answer
This question has been rejected because the issue it deals with is already explained or addressed inTemplate EULR2 - LRCom: Leverage ratio common disclosureof Commission Implementing Regulation (EU) 2021/637, Annex XVI.For further information on the purpose of this tool and on how to submit questions, please see 'Additional background and guidance for asking questions'.