Overcoming the FRTB Challenge

Under the Fundamental Review of the Trading Book, having quality data can mean a world of difference in capital charges. Joanna Wright reports

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Thomas Obitz, consultant, RiskTransform

The Fundamental Review of the Trading Book (FRTB) is just that—a fundamental and massive change in how regulators expect banks to calculate market risk and their capital buffers. The Basel Committee on Banking Supervision-mandated regulation therefore presents a significant set of infrastructural and operational challenges to banks, and the sourcing and management of quality, consistent data is at the heart of meeting these challenges, according to experts.

"When I read the regulation for the fi

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