EBA consults on draft technical standards related to the specific risk of debt instruments in the trading book

The European Banking Authority (EBA) launched today a consultation on draft Regulatory Technical Standards (RTS) assessing the minimum materiality needed to implement internal approaches for calculating own fund requirements related to risks associated with debts instruments in the trading book. These RTS will be part of the Single rulebook aimed at enhancing regulatory harmonisation in the EU banking sector. The consultation runs until 15 October 2013.

In particular, these draft RTS set out criteria for assessing when the specific risk of debt instruments in the trading book is ‘material' enough to trigger an evaluation by the competent Authority.

After this evaluation, competent Authorities will be able to determine whether they shall encourage banks to enhance their internal assessment capacity and increase the use of internal models for capital calculations.

Consultation process

Comments can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 15 October 2013.

All contributions received will be published following the close of the consultation, unless requested otherwise.

Legal basis

The proposed draft RTS have been developed on the basis of Regulation 575/2013 of 26 June 2013. The EBA is expected to submit these draft RTS to the European Commission for endorsement by 1 January 2014.