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Article 7 - Capital requirements for winding-down or restructuring

A CSD shall calculate its capital requirements for winding down or restructuring by applying the following steps in sequence:

(a)

estimate the time span required for winding-down or restructuring for all of the stress scenarios referred to in the Annex consistently with the plan referred to in 2014;

(b)

divide the CSD’s annual gross operational expenses determined in accordance with Article 6(3) by twelve (‘monthly gross operational expenses’);

(c)

multiply the monthly gross operational expenses referred to in point (b) by the longer of the following points:

(i)

the time span referred to in point (a);

(ii)

six months.