Article 309 Own Funds Requirements for Pre-Funded Contributions to the Default Fund of a Non-Qualifying CCP and for Unfunded Contributions to a Non-Qualifying CCP

1.

An institution shall apply the following formula to calculate the own funds requirement for the exposures arising from its pre-funded contributions to the default fund of a non-qualifying CCP and from unfunded contributions to such CCP:

K = DF + UC

where:

K = the own funds requirement;

DF = the pre-funded contributions to the default fund of a non-qualifying CCP; and

UC = the unfunded contributions to the default fund of a non-qualifying CCP.

2.

An institution shall calculate the risk-weighted exposure amounts for exposures arising from that institution's contribution to the default fund of a non-qualifying CCP for the purposes of Article 92(3) as the own funds requirement, calculated in accordance with paragraph 1 of this Article, multiplied by 12.5.

[Note: This rule corresponds to Article 309 of the CRR as it applied immediately before revocation by the Treasury.]