5.2.3.3 Unwinding of Transactions Involving Eligible HQLA

The application identifies all transactions maturing within the LCR horizon where HQLA is placed or received. These transactions include repos, reverse repos, secured lending transactions, collateral swaps and so on. Such transactions are unwound that is, the original position is reversed and the cash or stock of HQLA is adjusted accordingly. This is done to avoid inclusion of any asset in the stock that may have to be returned to its owner before the end of the LCR horizon. The unwinding of transactions results in adjustments to the stock of HQLA, i.e. additions to or deductions from the stock of HQLA.