Market Risk Considerations Under the US Basel Endgame Proposal
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While the recent US Basel Endgame proposal will affect many elements of the capital rules, it will have a particularly significant effect on market risk, where it may increase the capital requirement by more than 50%. Midsize and larger US banking organizations and others with significant trading activity also will need to develop extensive position identification, modeling, and governance systems to comply with new market risk requirements. Smaller banking organizations, while not required to hold capital for market risk, will at least need to implement revised position identification processes to ensure that they do not become subject to this part of the proposal.
Please join Mayer Brown partners Jeffrey Taft and Matthew Bisanz for a discussion of the proposed market risk requirements and key issues banking organizations should consider during the comment period.
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