1. User Guide
  2. Liquidity Coverage Ratio Calculation
  3. Process Flow
  4. Identification of Asset Levels
  5. Identification of Assets as Liquid and Readily Marketable

4.2.1.1 Identification of Assets as Liquid and Readily Marketable

The application identifies liquid and readily marketable assets in the following manner:
  • It is traded in an active secondary market with more than two committed market makers
  • It has a large number of committed non-market maker participants on both the buying and selling sides of transactions
  • It has timely and observable market prices
  • It has high trading volumes

An asset that is not liquid and readily marketable is not considered a high quality liquid asset.