Guidance Note: Validation and verification of the '5.5 Branch Settlement Risk' Sheet (September 2019)

Summary

This guidance note explains the automated validation and verification checks the JFSC applies to the '5.5 Branch Settlement Risk' sheet within its prudential reporting template for OIBs. It sets out the data entry rules built into the Excel workbook and the checks the JFSC runs on submission, so that filers can understand and resolve any error or warning messages received.

• Data entry limits: Monetary amount cells only accept whole numbers between -1,000,000,000 and +1,000,000,000 (representing up to +/- £1 trillion given the £1,000 unit), unless otherwise noted.
• Self-check expectation: Excel validation only triggers on direct manual input, so it is not a failsafe; OIBs are expected to check their own data before relying on the workbook, in addition to the JFSC's checks on submission.
• Submission process: Submitting the template to the JFSC triggers the validation checks; if all checks pass, the submission is accepted and the OIB is notified, along with any warnings.
• Field-level checks: Specific cells for Number of Trades and At Risk Amount (Loss if trade fails / Mark to Market Receivable) across categories A.1 to B.2 must each contain a whole number within the stated range, each identified by a unique Check number for error-message matching.
• Calculation checks: Totals in row 9 (Number of Trades and At Risk Amount) are validated as the sum of the corresponding entries in rows 3 to 8.

The document is purely technical and explanatory in nature, describing how the reporting template behaves rather than creating new substantive reporting obligations beyond the JFSC's existing prudential reporting requirements for OIBs.

Key obligations

• OIBs should check their own submitted data for the '5.5 Branch Settlement Risk' sheet, as Excel's built-in validation is not a failsafe.
• Data entered in the Number of Trades and At Risk Amount cells must be whole numbers within the range -1,000,000,000 to +1,000,000,000.
• The calculated totals (row 9) must correctly sum the entries in rows 3 to 8 for both Number of Trades and At Risk Amount.

Applies to

OIBs (entities subject to the JFSC's prudential reporting requirements)