On April 1, 2021, ISDA and the Association for Financial Markets in Europe submitted a joint response to HM Treasury (HMT) on its consultation on implementing the Basel III standards.
The UK Financial Services Bill allows HMT to revoke provisions from the Capital Requirements Regulation (CRR) so the Prudential Regulatory Authority (PRA) can introduce updated prudential rules for credit institutions and PRA-designated investment firms equivalent to the EU’s CRR2.
Chapter two of the consultation paper is a statement of how HMT intends to exercise its revocation power, and chapter three seeks respondents’ views on HMT’s approach to applying the standardized approach (SA) reporting requirements under the Fundamental Review of the Trading Book (FRTB).
The industry appreciates the objective of this consultation for FRTB SA reporting is to leverage the existing regulations, now entered into force in the EU. However, there are areas that we believe require consideration, particularly on how the UK can align with the Basel Committee on Banking Supervision’s international standards. Furthermore, the industry is concerned with the supervisory authorizations that might be necessary ahead of the start of FRTB SA reporting in the first quarter of 2022.
Documents (1) for Response to HM Treasury Consultation on the Implementation of Basel III Standards
Latest
ISDA Launches Pre-adherence Period for Notices Hub
ISDA has begun a pre-adherence process for the ISDA Notices Hub, enabling firms to sign up to a free protocol that will allow them to use the new platform when it launches on July 15. Under the ISDA Master Agreement,...
ISDA SIMM EU Regulatory Approval Requirements
ISDA published ISDA SIMM version 2.7+2412 on May 22 – the first recalibration under the new semiannual cycle. The release triggered a new requirement for EU counterparties to apply for regulatory authorization to use the model – a submission that...
Creating Value - IQ June 2025
Ever since its establishment 40 years ago, ISDA has worked to enhance the safety and efficiency of derivatives markets. That has motivated everything we do – from the development of standard documentation and the rollout of new digital solutions to...
Paper on EC’s Sustainability Omnibus Proposal
On June 9, ISDA published a position paper setting out its views on the European Commission’s (EC) Sustainability Omnibus Package. In the paper, ISDA urges European authorities to: Ensure a proportionate, harmonized and symmetrical approach to the use of derivatives...