Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

You are viewing the version of the document as on 2021-11-03.

material currency

  1. 65(a) Material currencies, in respect of a firm at any time, are currencies determined in accordance with the following.
  2. (b) First, the amount of its assets and the amount of its liabilities in each currency (ignoring the sign) are separately calculated. The figures are as shown in the most recent data item FSA054 submitted to the171 appropriate regulator 171 .
  3. (c) Then, each such amount is converted into the reporting currency for the data item referred to in (b).
  4. (d) Each currency (which may include the reporting currency) that represents 20% or more of the total asset figure or 20% or more of the total liabilities figure is a material currency.
  5. (e) A currency is also a material currency if it is identified by the firm's current:
    1. (i) Individual Liquidity Adequacy Assessment; or
    2. (ii) Individual Liquidity Systems Assessment; or
    3. (iii) ILG that has been accepted by the firm;
    as being significant in the context of cross-currency liquidity risk (as referred to in BIPRU 12.5 (Individual Liquidity Adequacy Standards)).
  6. (f) The conversion rate for a currency into the reporting currency is the exchange rate on the date as of which the calculation is being made.
  7. (g) The reporting currency means the currency in which the most recent data item FSA054 (as referred to in (b)) is reported.
  8. (h) A currency is a material currency in relation to a firm's branch or a defined liquidity group of which it is a group liquidity reporting firm if it is identified as such in accordance with the procedures in the previous paragraphs of this definition except that the identification is carried out by reference to that branch or defined liquidity group. For these purposes, data item FSA054 for the reporting level concerned is used.
  9. (i) If the firm has not delivered data item FSA054 to the171 appropriate regulator 171 at the reporting level concerned or is currently not required to do so at the reporting level concerned, the calculation is carried out using the methods for drawing up data item FSA054.