How banks should organise themselves for FRTB
New market risk rules require a rethink on trading and ops, argue market risk experts
The Fundamental Review of the Trading Book aims to tighten holes in the market risk capital framework exposed by the financial crisis, forcing banks to allocate more capital to less liquid risks. Banks are planning wholesale changes to their trading desks to prepare for the new rules – but only those that restructure their operations properly to match will be able to implement the new framework successfully.
We believe FRTB requires a newly invigorated relationship between the front office and
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