Fundamental Review of the trading book
Preparing for the future in trading
In January 2016, the Basel Committee on Banking Supervision (BCBS), after three consultative papers since 2014, published its final rules on the Fundamental Review of the Trading Book (FRTB).
The FRTB rules, which represent a key post-crisis banking reform in the regulatory landscape, require all banks to implement the revised market risk standards by January 2019. The FRTB rules pose significant challenges for banks, which will be required to reconsider their business model and approaches for measuring market risks, and to refine their balance sheet management strategy.