Guidance Note - Validation and verification of the '3.5 OTC - Equities' Sheet (JIBs prudential reporting) (February 2019)

Summary

This is a technical guidance note from the JFSC explaining the automated validation and verification checks applied to the '3.5 OTC - Equities' sheet of the JIBs prudential reporting template. It sets out, cell by cell, what values are permitted, what must be left blank, and how calculated fields (add-on amounts, credit equivalent amounts, risk weighted amounts) are derived, so that reporting entities can understand and pre-check their submissions before sending them to the JFSC.

• Input range checks: Monetary input cells (Amount, Positive Mark-to-Market, Amount After CRM) across rows N.3.1 to N.3.15 must contain a whole number between -1,000,000,000 and +1,000,000,000 (unit is £1,000).
• Blank cell checks: Certain Risk Weighted Amount cells (e.g. H4, H9, H14) must be left blank because no risk weight applies to those rows.
• Calculation checks: Section 3 sets out the formulas Excel uses for totals and derived fields, including SUM formulas for totals row N.3.0 and ROUND-based formulas applying add-on percentages (6%, 8% or 10%) and risk weight percentages (20%, 50%, 100% or 150%) to produce Add-on Amount, Credit Equivalent Amount and Risk Weighted Amount.
• Submission process: Excel-level validation only checks direct manual input and is not a failsafe; the JFSC re-runs all checks on submission, and JIBs are notified of acceptance together with any warnings.

The note is purely explanatory and procedural: it does not create new reporting obligations beyond the existing JIBs prudential reporting requirement, but tells filers how to interpret validation error messages (each identified by a unique Check number) so they can correct their data before or after submission.

Key obligations

• JIBs must ensure that input cells in the '3.5 OTC - Equities' sheet contain only whole numbers within the range -1,000,000,000 to +1,000,000,000 before submitting the JIBs prudential return.
• JIBs must leave designated Risk Weighted Amount cells (e.g. H4, H9, H14) blank where no risk weight applies.
• JIBs should independently check their data for accuracy before submission, since Excel's built-in validation is not a failsafe and the JFSC will run its own checks on receipt.

Applies to

JIBs (entities subject to JFSC prudential reporting requirements)