The European Commission has opened a public consultation on planned changes to how EU banks calculate capital for market risk in their trading activities.
The consultation covers a draft delegated act linked to the “fundamental review of the trading book” (FRTB), a set of rules that updates how banks measure risks from trading in financial instruments such as shares, bonds and derivatives, according to the Commission's statement released on Wednesday.
The FRTB is part of the Basel III global banking standards developed by the Basel Committee on Banking Supervision.
All Basel III requirements except the FRTB have applied in the EU since 1 January 2025.
Under the draft act, the Commission proposes targeted amendments to the EU’s FRTB-related rules that are due to apply from 1 January 2027 under the Capital Requirements Regulation.
The proposed changes would offset the negative capital impact of the FRTB for three years for EU banks competing internationally in trading activities.
Timeline and background
The measures reflect feedback from a two-month targeted consultation held at the end of 2025 and input from member state experts, the Commission said.
The formal adoption of the delegated act is expected after a four-week period ending on 19 May 2026.
The Commission noted the timeline is intended to give banks and national supervisors enough visibility to implement the framework from 1 January 2027.
