Isda gives cautious welcome to Basel Committee progress report

The International Swaps and Derivatives Association today issued a cautious welcome to the Basel Committee on Banking Supervision’s latest progress report on the state of the new capital adequacy directive, Basel II.

Isda said it “strongly welcomes” the committee’s decision to set up a new working group to review its capital treatment of bank trading books. Isda, and the financial services community, have heavily petitioned Basel regulators to review trading book procedures, believing the current Basel II proposals to be too punitive.

“We had long been advocating the creation of such a group and hope that it can be established as soon as possible,” said Emmanuelle Sebton, head of risk management at Isda. She

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