Question ID: 167
Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)
Article: 35
Template: S.08.01
Status: Final
Date of submission: 27 Mar 2015
Question
In cell A22 of S.08.01, should an outflow payment be positive or negative?
Also, take the example of a total return swap where we are paying the return leg. Should the payment always be placed in the outflow column under all circumstances? What if the return leg moves in favour of us - would we record the payment as a negative outflow or move this to an inflow?
EIOPA answer
The amount of the outflow payment shall be reported as a positive value.
On the second point, the amount should be reported as an inflow if the return leg move in favour of the undertaking. This is the rule applicable to all swap flows when payments are netted, it will be inflow if received by the undertaking in one reporting period, and can be outflow in the next period if the undertaking is paying.