Recital 1

(1)Article 9(5), Article 10(6) and Article 11(3) of Commission Delegated Regulation (EU) 2016/101 ² provide that, with regard to institutions that calculate additional valuation adjustments (AVAs) under the core approach set out in that Regulation, individual AVAs related to market price uncertainty, close-out costs and model risk are to be determined with reference to a 90 % level of certainty based on the applicable market conditions at the time of the calculation. That Regulation also specifies an aggregation approach for the calculation of the total category level AVAs based on those individual AVAs, which takes account of overlaps among individual AVAs that occur in the aggregation of those categories of AVAs.