Isda and Liba protest against CAD3 divergences from Basel II

The two banking industry associations, which have worked closely together on many of the Basel II-related regulatory initiatives, were greatly concerned about places in which the CAD3 document departed from the most recent releases from the Basel committee, including the Technical Guidance to the third Quantitative Impact Study (QIS3).

Specifically, the two groups were concerned about:
- the hedging criterion for trading book eligibility, which is not mentioned in the CAD3 text;
- the fact that cro

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