CP0520 – Resolve the inconsistency on the Credit Level naming convention between the ECVAA specifications/software and the Balancing and Settlement Code. The ECVAA system functionality should be amended to report a Level 1 credit default on breach of 80% Indebtedness and a Level 2 Credit Default on breach of 90% Indebtedness for a Participant. The ECVAA Specifications should be amended where appropriate to reflect this functionality and reporting change. The Balancing and Settlement Code Section M 3.2.1 states that a Level 1 Credit Default occurs when a Participant goes above 80% Indebtedness, Section M 3.3.1 states that a Level 2 Credit Default occurs when a Participant goes above 90% Indebtedness. The ECVAA System Specification (Issue 3.4 section 4.3) states that an ‘Indebtedness Level 1’ occurs when the Participant goes above 90%. The specification also refers to a ‘Level 2 system parameter

Formal title: Resolve the inconsistency on the Credit Level naming convention between the ECVAA specifications/software and the Balancing and Settlement Code. The ECVAA system functionality should be amended to report a Level 1 credit default on breach of 80% Indebtedness and a Level 2 Credit Default on breach of 90% Indebtedness for a Participant. The ECVAA Specifications should be amended where appropriate to reflect this functionality and reporting change. The Balancing and Settlement Code Section M 3.2.1 states that a Level 1 Credit Default occurs when a Participant goes above 80% Indebtedness, Section M 3.3.1 states that a Level 2 Credit Default occurs when a Participant goes above 90% Indebtedness. The ECVAA System Specification (Issue 3.4 section 4.3) states that an ‘Indebtedness Level 1’ occurs when the Participant goes above 90%. The specification also refers to a ‘Level 2 system parameter

Summary

Resolve the inconsistency on the Credit Level naming convention between the ECVAA specifications/software and the Balancing and Settlement Code. The ECVAA system functionality should be amended to report a Level 1 credit default on breach of 80% Indebtedness and a Level 2 Credit Default on breach of 90% Indebtedness for a Participant. The ECVAA Specifications should be amended where appropriate to reflect this functionality and reporting change. The Balancing and Settlement Code Section M 3. 2. 1 states that a Level 1 Credit Default occurs when a Participant goes above 80% Indebtedness, Section M 3. 3. 1 states that a Level 2 Credit Default occurs when a Participant goes above 90% Indebtedness. The ECVAA System Specification (Issue 3. 4 section 4. 3) states that an ‘Indebtedness Level 1’ occurs when the Participant goes above 90%. The specification also refers to a ‘Level 2 system parameter