Fundamental Review of the Trading Book: Impacts on financial institutions in Australia

The Fundamental Review of the Trading Book (FRTB) is a Basel Committee for Banking Supervision (BCBS) revision of trading book capital rules. It hones the current Basel measures which were implemented in the aftermath of the financial crisis. 

Today it has become increasingly important for firms to pay attention to developments around the FRTB. As a result many institutions are planning how they will organize themselves and their internal processes to achieve compliance within the tight deadline.

This white paper aims to outline the FRTB’s key requirements, and how they translate into processes in and around the trading book. It offers suggestions with respect to best practices for the design and development of a platform to meet concerns raised by Australia’s banking industry.