The EBA publishes final draft technical standards on residual risk hedging instruments

Article summary

The European Banking Authority (EBA) has published its final draft Regulatory Technical Standards (RTS) on the conditions for determining whether an instrument attracting residual risk acts as a hedge. These RTS are part of the Phase 1 deliverables of the EBA's roadmap on the implementation of the EU banking package in the area of market risk. The RTS have been developed under Article 325(u)(6) of Regulation (EU) No 575/2013 (CRR), as amended by the CRR3, which mandates the EBA to specify criteria to identify positions attracting residual risk that act as a hedge.