Fundamental review of the trading book

The Basel Committee on Banking Supervision has released the consultative document “Fundamental Review of the Trading Book” (FRTB). This review of the trading book is likely to have far-reaching implications for trading activities.

The consultation document outlines a revised trading book framework and proposes a number of specific measures. The scope is wide and covers:

  • trading book definition
  • capturing all risks in the trading book
  • improving risk measurement, and
  • achieving comparable levels of capital across internal model and standardised approaches.

In our latest point of view, you can find out what the impacts could be for firms, individual business units and the industry. We have compared the differences between Basel 2.5 and this review, and looked at what you should be doing today.