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EBA publishes final standards on long and short positions

Published on: 06 December 2024
Published by LNB News

LNB News 06/12/2024

Document Information

Issue Date: 06 December 2024

Published Date: 06 December 2024

Jurisdiction(s): Eire and European Union

Article summary

The European Banking Authority (EBA) has published a Final Report on draft Regulatory Technical Standards (RTS) detailing methods for identifying main risk drivers and determining long or short positions in transactions. The draft RTS, propose a general method based on sensitivities from the market risk standardised approach (FRTB-SA) or add-ons from the standardised approach for counterparty credit risk (SA-CCR). A simplified method for relatively simple instruments such as fixed- and floating-rate bonds, stocks, forwards, futures, simple swaps and plain vanilla options is also included.

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