Question
What should be the limit for validation rules v7585_m and v7630_m, considering that some of the items reported in row 1090 of C73.00 Outflows get 25% outflow rate?
Background on the question
Currently, the validation rules for LCR reporting, V7585_m and V7630_m issue a warning if the average weight for items listed in row 1090 of Table C73.00 – outflows is less than 50%. As some items (with eligible counterparties) reported in row 1090 receive a 25% outflow rate, this triggers the need to provide explanations to the supervisor after the report submission. Securities lending and capital market-driven transactions with eligible counterparties, which receive a 25% outflow rate, should be included in row 1090 of Table C73.00 – outflows (According to Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions, Annex XXV, Part 2 and Article 28(2) of Delegated Regulation (EU) 2015/61). Therefore, the current validation rule of >=50% average weight triggers warnings unnecessarily. We propose changing the validation rule to >=25% to avoid triggering unnecessary checks by the supervisors.
Answer
This question has been rejected because the matter it refers to has already been identified and will be considered for a forthcoming version of the Reporting framework / release of the respective validation rules.