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Fundamental Review of the Trading Book (FRTB)

Refinitiv Trade Discovery

Our Refinitiv Trade Discovery solution supports our customers with the Risk Factor Eligibility Test (RFET) and provides you with evidence of "real" observations across a range of asset classes 

Our take on FRTB in 60 seconds

Fundamental Review of the Trading Book (FRTB) addresses the shortcomings of the current (Basel 2.5) market risk framework. The objective being to make the financial system more robust whilst not unduly inhibiting the efficiency of the market.

The regulation introduces a wide range of changes, including:

  • creation of a basic standard, which all banks need to adopt
  • more stringent requirements to get approval to use internal models; and
  • an improved risk governance framework 

With the rules finalised in January 2019, there is no better time for banks to progress implementation of new systems and processes for this regulation. Although these new rules don’t come into effect until January 2023, the complex nature means banks have much work to do, so need to commence their implementation imminently.

This is particularly true for any bank seeking to gain or retain internal model status due to the complex nature of both the P&L attribution requirements and introduction of the Risk Factor Eligibility Test (RFET).

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On-demand Webinar

FRTB: Time to address implementation challenges

Our latest complimentary webinar explores the ambiguous aspects of the FRTB regulation, including remaining challenges for practitioners, disruptions like COVID and LIBOR, alongside solutions, in advance of the January 2023 deadline. We’ve invited a regulation authority representative and business leaders from the banking industry to discuss how they are approaching the rules, timelines, and implementation.

Our solution

Refinitiv Trade Discovery

Refinitiv Trade Discovery provides you with machine-readable “real price” observations data that maximizes your chance of passing RFET.

In addition, our web-based interface makes it easy to explore the data, refine your risk factor to instrument mapping rules and enrich your existing internal datasets.

Contact us to find out more.

FRTB RFET challenges

What are the challenges of FRTB RFET?

Jacob Rank-Broadley (Director of Regulatory and Market Structure Propositions) and Fausto Marseglia (Head of Product Management, FRTB, Regulatory Propositions) - both at Refinitiv - discuss the biggest challenges that financial firms are facing with regards to implementing the Risk Factor Eligibility Test (RFET), part of the Fundamental Review of the Trading Book.

Passing the FRTB RFET

The bucketing approach

"One observation per month" requirement

Delayed publication of MiFID II data

Implementing FRTB RFET

Key takeaways

Here are the essentials

Prepare ahead

With the FRTB rules finalised, there is no better time to accelerate your implementation program. This is particularly true for those banks seeking IMA, as there is much work to do prior to the January 2023 deadline.

Think strategically

The demands of FRTB are considerable. Working with the right partner is essential, not only for compliance but to build a solid foundation from which to build your business.

Engage a trusted partner

We are your trusted partner, providing you with the knowledge, data and tools to put you in control of the outcome.