Article 42 3

(a)

require the institution to provide the Monte Carlo statistical error at 95 % confidence level, and verify whether the method employed to measure such statistical error is sound;

(b)

require the institution to calculate the expected shortfall risk measures with several different seeds, all other assumptions being equal;

(c)

assess whether the differences in the expected shortfall risk measures with a different seed resulting from the calculation in accordance with point (b) are compatible with the statistical error referred to in point (a).

(d)

where competent authorities deem the results referred to in point (c) incompatible, assess the root cause of such incompatibility, and assess the number of simulations needed to ensure that the statistical error is below 5 %.