Regulatory Alerts2026-08-03
Added
Opinion on the application of the provisions relating to the boundary between trading book and banking book, and on internal risk transfer between books
Competent authorities should not prioritise supervisory or enforcement action regarding the FRTB boundary framework provisions (Articles 104, 104a, 106(2) to (7), 204a, and 325j(5) of Regulation (EU) No 575/2013) and the associated reporting requirements under Commission Implementing Regulation (EU) 2024/3117 until the earlier of 31 December 2029 or the application of a legislative proposal modifying these articles. Institutions applying the multiplier under Article 495v of Regulation (EU) No 575/2013 may base their own funds requirements for market risk on the CRR2 boundary framework, and institutions not using the multiplier should be afforded the same flexibility to ensure a level playing field. The reporting of information on the composition of the trading book and reclassifications between books is suspended until the FRTB boundary framework applies for the calculation of own funds requirements.