More NewsIndustry Bodies Discuss Application of Basel II to Trading Activities

Industry Bodies Discuss Application of Basel II to Trading Activities

The International Swaps and Derivatives Association (ISDA), the Institute of International Finance (IIF), the London Investment Banking Association (LIBA) and the Bond Market Association (BMA) met with a group of banking and securities regulators in New York to discuss the consultative document issued jointly by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) on the application of Basel II to trading activities and the treatment of double default effects. Overall, the associations are pleased with the proposals put forward in the field of counterparty credit risk and thanked the regulators for the openness and co-operation with which they have sought to work with the industry. The high degree of engagement with the industry has been most pronounced on Strand 1 (counterparty credit risk), and to a lesser extent, Strand 2 (double default risk) of the review. The dialogue on the complex Strand 3 (trading book issues and unsettled transactions), by contrast, has suffered the most from time constraints and has thus benefited the least from the thorough discussion that the subjects would merit. The proposed changes in this area are substantial and need further discussion. The formal consultation phase is therefore a critical step, which the associations hope will produce much needed changes to the package.

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

3w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

5m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

5m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha