RTS: Margin periods of risk (Supplement to Reg 575/2013)

This regulation establishes technical standards for determining 'margin periods of risk' used in financial supervision. It defines the timeframes during which a financial institution must be able to cover potential losses if a counterparty defaults, ensuring that banks hold sufficient liquidity to manage these risks.

This primarily affects credit institutions and investment firms. It changes how these entities calculate risk exposure and capital requirements for derivative contracts and other financial instruments.