CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

FCA 2013/xx
(2) (in BIPRU 1.1 (Application and purpose) and in accordance
with article 3(1)(p) of the Capital Adequacy Directive
(Definitions)) an undertaking dealing for its own account on
markets in financial-futures or options or other derivatives
and on cash markets for the sole purpose of hedging
positions on derivatives markets or which deals for the
accounts of other members of those markets and which are
guaranteed by clearing members of the same markets,
where responsibility for ensuring the performance of
contracts entered into by such an undertaking is assumed by
clearing members of the same markets; for these purposes a
clearing member means a member of the exchange or the
clearing house which has a direct contractual relationship
with the central counterparty (market guarantor). [deleted]
(3) (in IFPRU 1.1 (Application and purpose) has the meaning
given to the definition of “local firm” in article 4(1)(4) of
the EU CRR.
loss (1) (in BIPRU and in accordance with Article 4(26) of the
Banking Consolidation Directive (Definitions) and for the
purposes of the IRB approach, the standardised approach
to credit risk and BIPRU 5 (Credit risk mitigation))
economic loss, including material discount effects and
material direct and indirect costs associated with collection
on the instrument.
(2) (in IFPRU) has the meaning in article 5(1) of the EU CRR.
non-core large
exposures group
(in relation to a firm) has the meaning in BIPRU 10.9A.3R
(Definition of non-core large exposures group), which is in
summary each non-core concentration risk group counterparty that
is not a member of the core UK group but satisfies all the
conditions for membership of the firm's core UK group except for
BIPRU 10.8A.2R(1) (Core concentration risk group counterparty),
BIPRU 10.8A.2R(5) (Establishment in the United Kingdom) and
BIPRU 10.8A.5R(2) (Capital maintenance arrangements) all
counterparties which satisfy the conditions in IFPRU 8.2.4R (Intragroup
exposures: non-core large exposures group) and for which
exposures are partially exempted, under article 400(2)(c) of the EU
CRR (Exemptions), from the application of article 395(1) of the EU
CRR (Limits to large exposures).
non-EEA sub-group (1) (in BIPRU) a group of undertakings identified as a non-EEA
sub-group in BIPRU 8.3.1R (Main consolidation rule for
non-EEA sub-groups); however where the provision in
question refers to a non-EEA sub-group in another EEA
State it means a group of undertakings identified in Article
73(2) of the Banking Consolidation Directive (Non-EEA
sub-groups) required to be supervised on a consolidated
Page 189 of 197