4.6.1.1 Identification of Liquid and Readily Marketable Assets

Regulation YY allows highly liquid assets to be included in the available buffer. Highly liquid assets are assets that:

1. Have low credit and market risk
2. Are traded in an active secondary two-way market that has observable market prices, committed market makers, a large number of market participants, and a high trading volume
3. Are types of assets that investors historically have purchased in periods of financial market distress during which liquidity has been impaired

This definition is very similar to the US LCR definition of liquid and readily marketable assets and so the application re-uses these classification rules. See section Identification of Assets as Liquid and Readily Marketable for further details on this.