FRTB Reloaded: New Consultation Paper

The Basel Committee (BCBS) published the new standards “Minimum capital require-ments for market risk” on 14 January 2016. On 22 March 2018, BCBS published a new consultative document on the Fundamental Review of the Trading Book (FRTB) along with updated FAQs. This is a reac-tion to the challenges observed both with regard to the implementation of the new rules as well as the shift of the implementation and regulatory reporting date by the Group of Governors and Heads of Supervision (GHOS) from December 2019 to January 2022. The impact of the new proposals in the consulta-tive document will be assessed based on the data, which are currently collected in the con-text of the Basel III monitoring for end-December 2017. Comments can be submit-ted until 20 June 2018. The document further proposes to extend the introduction of the disclosure requirements to 2022. This paper highlights and discusses the changes compared to the standard of 2016.