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Implications from FRTB - Seminar takeaways

The final guidance for what has been known as the Fundamental Review of the Trading Book, published on 14 January 2016, has a new more risk-sensitive standard approach but also a more prescriptive guidance for internal model approval. Eligibility rules that are open to interpretation and desks that may require higher capital if the internal model is no longer approved affecting Front Office’s compensation and profitability, are among the biggest challenges the industry is facing.