Regulatory Alerts2025-07-01
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Commission Delegated Regulation (EU) 2025/1265 on identifying main risk drivers and long or short positions
The European Commission adopted Delegated Regulation (EU) 2025/1265 to supplement Regulation (EU) No 575/2013 by establishing regulatory technical standards for identifying the main risk driver of a position and determining whether a transaction represents a long or short position. The regulation mandates specific calculation methods, such as risk-weighted delta sensitivities, for institutions to classify non-derivative and derivative positions, while providing simplified approaches for small and non-complex institutions. These rules apply to credit institutions and investment firms subject to prudential requirements under the Capital Requirements Regulation.
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