Today, the Basel Committee issued a second proposal on the fundamental review of capital requirements for the trading book.
The first proposal, issued in May 2012, described a number of specific measures to improve trading book capital requirements. The second proposal provides more detail on the approaches introduced in May 2012, and sets out a draft text for a revised market risk capital framework.
The key features of the proposed revised framework include:
- A revised boundary between the trading book and banking book.