FRTB implementation is out of sync across Asia

Author: Karry Lai | Published: 23 Apr 2019

Across Asia, wide discrepancies remain in how jurisdictions are dealing with Basel III rules including the Fundamental Review of the Trading Book (FRTB).

Some have implemented the global rules to a high standard, while others are still not Basel-compliant, explained panellists at the International Swaps and Derivatives Association (Isda) AGM in Hong Kong. Differences in how regulators approach the FRTB – also known as Basel III minimum capital requirements for market risk – are creating uncertainty for banks.

The Basel Committee on Banking Supervision (BCBS) issued its final version of the FRTB on January 14 2019. The proposed framework means that banks need to overhaul their internal systems and processes, particularly in the...