# Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (Text with EEA relevance), Article 26: Calculating K‐TCD

Extent: E+W+S+N.I.

For the purpose of calculating K‐TCD, the own funds requirement shall be determined by the following formula:
Own funds requirement = α • EV • RF • CVA
where:
α = 1,2;
EV = the exposure value calculated in accordance with Article 27;
RF = the risk factor defined per counterparty type as set out in Table 2; and
CVA = the credit valuation adjustment calculated in accordance with Article 32.
Table 2
Counterparty type
Risk factor
Central governments, central banks and public sector entities
1,6 %
Credit institutions and investment firms
1,6 %
Other counterparties
8 %

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Source: https://www.legislation.gov.uk/eur/2019/2033/article/26 (the official version)
Page: https://openlegislation.uk/eu-regulation-2019-2033/article-26
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.