Article 59 - Deduction of holdings of Additional Tier 1 instruments of financial sector entities
Table of content
Deduction of holdings of Additional Tier 1 instruments of financial sector entities
Institutions shall make the deductions required by points (c) and (d) of Article 56 in accordance with the following:
they may calculate direct, indirect and synthetic holdings of Additional Tier 1 instruments of the financial sector entities on the basis of the net long position in the same underlying exposure provided that both the following conditions are met:
the maturity date of the short position is either the same as, or later than the maturity date of the long position or the residual maturity of the short position is at least one year;
either both the short position and the long position are held in the trading book or both are held in the non-trading book.