Question ID: 89
Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)
Article: 35
Status: Final
Date of submission: 04 Jul 2014
Question
S08.01 Premium paid/received to date
The payment received (if sold) or paid (if bought), for options and also up-front and periodical amounts paid / received for swaps, since inception.
Options: original cost value
SWAPS: can only be calculated on transactional data.. Since inception is including history, are all transactions available?
how we should interpretate “since inception”
EIOPA answer
The instructions intend to explain that it includes all the cash-flows paid and received as premiums under the contract, at the transaction date (since the day it was entered into by the undertaking) and during its life (cell A17 in S.08.01 different variants) . Examples: For OTC swaps probably the full amount of premiums is paid/received at inception only. For traded swaps it will probably be the cash-flows paid / received related to premiums since the day it was entered into by the undertaking until the reporting date; this might also encompass amounts that count as premiums that are exchanged after the inception of the swap.