Updated 22/10/2024
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Version from: 10/03/2017
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Article 7 - Capital requirements for winding-down or restructuring

Article 7

Capital requirements for winding-down or restructuring

A CSD shall calculate its capital requirements for winding down or restructuring by applying the following steps in sequence:

(a) 

estimate the time span required for winding-down or restructuring for all of the stress scenarios referred to in the Annex consistently with the plan referred to in Article 47(2) of Regulation (EU) No 909/2014;

(b) 

divide the CSD's annual gross operational expenses determined in accordance with Article 6(3) by twelve (‘monthly gross operational expenses’);

(c) 

multiply the monthly gross operational expenses referred to in point (b) by the longer of the following points:

(i) 

the time span referred to in point (a);

(ii) 

six months.