X1PART SIXLIQUIDITY
TITLE IILIQUIDITY REPORTING
Article 419 Currencies with constraints on the availability of liquid assets
1.
2.
Where the justified needs for liquid assets in light of the requirement in Article 412 are exceeding the availability of those liquid assets in a currency, one or more of the following derogations shall apply:
(a)
by way of derogation from point (f) of Article 417, the denomination of the liquid assets may be inconsistent with the distribution by currency of liquidity outflows after the deduction of inflows;
(b)
for currencies of F3the United Kingdom or third countries, required liquid assets may be substituted by credit lines from F4the central banks, which are contractually irrevocably committed for the next 30 days and are fairly priced, independent of the amount currently drawn, provided that the competent authorities of F5the United Kingdom or third country do the same and F5the United Kingdom or third country has comparable reporting requirements in place.
3.
The derogations applied in accordance with paragraph 2 shall be inversely proportional to the availability of the relevant assets. The justified needs of institutions shall be assessed taking into account their ability to reduce, by sound liquidity management, the need for those liquid assets and the holdings of those assets by other market participants.