4.5.2 FR2052A Reporting Validations

The Federal Reserve Board issued certain data validations on the 5G Reporting lines. These validations are pre-built in the out of the box solution. These are packaged along with the US LCR run and will be executed alongside the calculations.

The below table lists the validations:

Table 3-12 Validations

Name of the Validation	Description
Validation 1: Weekend maturities	This check verifies that the cash flows are not reported using weekend values. The day buckets reflect the date on which the cash flows are actually observed.
Validation 2: Internal transactions reported on consolidated reporting entity	This check verifies that the transactions reported on the consolidated legal entity do not have the [Internal] flag set to True.
Validation 3: Internal transactions reported without internal counterparty	This check verifies that transactions reported with an 'Internal' counterparty set to 'True', also report the Internal counterparty value.
Validation 4: Lendable value in excess of market value	This check verifies that the lendable value measure does not exceed the market value measure.
Validation 5: 3rd party reporting entity exposures versus consolidated.	This check verifies that the sum of third party exposures of the 1st tier entities match the consolidated group's third party exposures.
Validation 6: Symmetry of intercompany transactions	This check verifies that symmetry exists for internal transactions between affiliates. This means that identical product groupings should be matching for inflows and outflows when transactions are internal. [Reporting entity] and [Internal counterparty] pairs are to be matched for a given set of product groupings.
Validation 7: Large haircuts on secured transactions	This check highlights potential errors in the reporting of [Maturity amount] and [Collateral Class] for secured transactions. This check computes an absolute haircut % for each record.
Validation 8: Mismatched currency reporting	This check verifies that the currency attributes linked to [Market value], [Lendable value], [Forward start amount] and [Maturity amount] correspond to the appropriate currency fields
Validation 9: Missing required products by entity type	This validation checks that for a given entity type (BHC, lead bank, branch and so on) includes all products which are expected for the type of the reporting entity. This check highlights potential errors where products that are generally expected for a particular reporting entity, given its type (BHC, lead bank, branch and so on), are not reported.
Validation 10: Improper Intra entity consolidation	This check verifies that for transactions where the [Internal] field is set to True, the values for [Reporting entity] and [Internal counterparty] are not same.
Validation 11: Duplicate records	Numeric values are expected to be aggregated across all unique combinations of all the other fields (text) in each table. An error occurs when two or more records exist with same combination of text fields. This check identifies errors where FR 2052a records submitted do not reflect distinct groupings of non-numeric fields.
Validation 12: Invalid or Missing Counterparty Field	This check identifies rows where values in the [Counterparty] field: Are missing when it is required to be reported Or, Are invalid values when it is required to be reported
Validation 13: Missing or Not applicable collateral class field	This check identifies rows where values in the [Collateral class] field: Are missing when it is required to be reported Or, Are reported when it is not applicable to the product.
Validation 14: Large other product or counterparty balance	This check identifies instances where the balance amount is in excess of $1bn where, either the product or counterparty belongs to 'Other' category. Any product with a counterparty field as 'Other', having $1bn or more against a legal entity. Any counterparty where the products belong to 'Other' categories (listed) having $1bn or more against a legal entity.