Following the adoption today by the European Commission of the Delegated Act implementing market risk rules under the Basel global bank accords – including a “multiplier,” which offsets any rise in capital requirements for market risk until the end of 2029 - Caroline Liesegang, Managing Director, Head of Capital & Risk Management at the Association for Financial Markets in Europe (AFME), commented:
“AFME supports the Commission’s decision to implement the market risk rules from 1 January 2027 alongside a multiplier that effectively offsets increases in FRTB capital requirements until 2029. We also welcome the targeted amendments the Commission has introduced in the meantime.
“The Delegated Act reflects the need for further clarity and alignment between jurisdictions, which is particularly important for internationally active banks and critical to avoid unnecessary regulatory fragmentation. We now urge authorities to provide the remaining essential clarifications as soon as possible.”
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