7. For the purposes of paragraph 3, point (c), and paragraph 4, point (c), competent authorities shall:
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(a)
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require the institution to provide a sample of buckets relating to a set of curves, surfaces or cubes, and the corresponding verifiable and representative prices;
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(b)
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for the verifiable prices referred to in point (a), verify, for the buckets for which there are multiple verifiable prices on a given observation date, that only one verifiable price per each date is considered when assessing whether the conditions referred to in Article 1 of Delegated Regulation (EU) 2022/2060 are met;
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(c)
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for the verifiable prices referred to in point (a), assess that the methodology employed by the institution to map a verifiable price to a given bucket is appropriate.
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For the purposes of point (a), the sample of buckets shall include, among others, buckets that narrowly met the conditions for being assessed modellable and buckets that changed their modellability status over the previous year. Where applicable, that sample shall include buckets for which verifiable prices are obtained solely by the institution, solely by third-party vendors, and by both the institution and third-party vendors.
For the purposes of point (c), the competent authority shall verify whether:
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(a)
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the points in a bucket are a strong driver of the price considered representative,
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(b)
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the method used by the institution to conclude that there is a close relationship between any point in the bucket and that price is sound,
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(c)
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the methodology employed by the institution to extract the value of that point in the bucket from that price is sound.
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