Question ID: 2965
Regulation Reference: (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision
Topic: Validations
Template: S.08.01
Status: Final
Date of submission: 26 Jan 2024
Question
BV1026-2 states {t: S.08.01.01.01, c: C0180, z: Z0001} > 0, but when I look at the actual guidance, it says: "Number of underlying assets in the contract (e.g. for equity futures it is the number of equities to be delivered per derivative contract at maturity, for bond futures it is the reference amount underlying each contract). The way the contract size is defined varies according with the type of instrument. For futures on equities it is common to find the contract size defined as a function of the number of shares underlying the contract. For futures on bonds, it is the bond nominal amount underlying the contract. Only applicable for futures and options" The validation rule does not have any filter that would indicate that this should only be for CIC A, B, or C. The guidance indicates this rule should only be applicable to A, B, and C. Is validation rule BV1026-2 correct?
EIOPA answer
Validation, in order to be executed, must meet certain conditions. As a general rule, each variable defined in the validation must be linked to the corresponding fact in the report or take a fallback value. However, at least one of the variables must be assigned for the validation to run (even if all of them have fallback values set). In the case of BV1026 there is only one variable, making it necessary to report column C0180 for the validation to perform its check. Therefore, the requirement is to provide a positive value if this column is reported. Pleas note that the constrain on when to report C0180 may be defined by other validations and EIOPA suggest undertakings to always taking into consideration all materials available when filling their reports.