Arxo Findings Register · Arxo Law

ARXO-2026-0373 · Reported

Basel Framework: CRE52.59 Step 5

In the SA-CCR foreign exchange steps, Step 5 sums add-ons 'calculated in step 5', a self-reference; step 4 is meant.

Consequence

Position: FX netting set with two currency pairs, |EN| 1000 and 500. Reading a: Step 5 sums add-ons from step 4: 0.04*(1000+500) = 60 Reading b: Literal self-reference: no input is defined for step 5, result undefined Difference: defined vs undefined

Proposed correction

Clarify or correct the cited passage so that the rule and its references give one result for the stated case.

Issued by
Basel Committee on Banking Supervision
Act
Basel Framework CRE52 (in force 2023-01-01, published 2020-06-05)
Place
CRE52.59 Step 5
Record
Discrepancy
Class
Text of the act
Where it arose
The text of the act
Arxo's conclusion
Confirmed
Official text
Unchanged at last check
Last checked
2026-10-31

Evidence

Contradiction within the text. Quotations are verbatim from the official material; translations are ours and marked.

Step 5: Calculate the asset class level add-on (AddOnFX) by adding together all of the hedging set level add-ons calculated in step 5:
Normative text · Basel Framework CRE52 (in force 2023-01-01, published 2020-06-05) · CRE52.59 Step 5 · Published 2020-06-05 · retrieved 2026-10-31 · SHA-256 5b52b72681dbea4d0ded7a317ea06ca15241c115478efa5dba0fc38f6df9d99d · copy
Step 4: Calculate the hedging set level add-on (AddOn_{HS}) by multiplying the absolute value of the effective notional of the hedging set (EN_{HS}) by the prescribed supervisory factor (SF_{HS}).
Normative text · Basel Framework CRE52 (in force 2023-01-01, published 2020-06-05) · CRE52.59 Step 5 · Published 2020-06-05 · retrieved 2026-10-31 · SHA-256 5b52b72681dbea4d0ded7a317ea06ca15241c115478efa5dba0fc38f6df9d99d · copy

How to check it without Arxo's tools

  1. Open Basel Framework CRE52 (in force 2023-01-01, published 2020-06-05) and find CRE52.59 Step 5. Compare the text with the quotation above. A copy is kept in this register: 5b52b72681dbea4d-CRE52@2023-01-01~2020-06-05.txt (SHA-256 5b52b72681dbea4d0ded7a317ea06ca15241c115478efa5dba0fc38f6df9d99d, copy of the official file).
  2. The finding holds if the quoted passages read as shown and the comparison gives the result stated at the top of this page. If it does not, write to us with the record ID.

How this finding was made

AI models read the texts, built the examples and reviewed the findings.

Responsible institutions

Reported to

DateInstitutionChannelReference
2026-10-31Basel Committee on Banking Supervisione-mailhttps://mail.google.com/mail/u/0/#sent/KtbxLthRTjRNkqRtWGvxMWmXhVdckfWkGV

Responses

No response recorded.

History

  1. 2026-10-31Confirmed by Arxo
  2. 2026-10-31Entered in the register
  3. 2026-10-31Reported to Basel Committee on Banking Supervision (e-mail)

Cite this record

Arxo Law, Arxo Findings Register, ARXO-2026-0373, https://arxo.io/findings/ARXO-2026-0373/ (status as of 2026-10-31). Data: ARXO-2026-0373.json.