White Paper

Fundamental Review of the Trading Book: Impacts & Market Perspectives

Company: Chappuis Halder

Chappuis Halder case study

Category: Market Risk

Published: 24 February 2016

Format:

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Overview

The purpose of the Fundamental Review of the Trading Book (FRTB) is to cover shortcomings that both regulations and internal risk processes failed to capture during the 2008 financial crisis.

The introduction of the FRTB demonstrates that regulators are willing to look at:

  • A convergence between risk measurement methods.
  • An integrated assessment of risk types
  • An alignment between prudential and accounting rules.
     

This white paper analyses the FRTB, covering its origins, responsibilities and priorities. The paper further identifies how market participants interpret the reform and examines some of the FRTB’s key issues. 

 

Categories related to Market Risk