Manipulation threat to FRTB data pooling

Concerns over the governance of submitted data and costs could spawn rival initiatives

Hands off: a data utility would need a validation and monitoring system

A strong governance framework to prevent the manipulation of submitted data will be essential for any data-pooling initiative to aid compliance with Basel's Fundamental review of the trading book (FRTB), consultants warn. The costs, however, could deter participants and prompt alternative approaches.

"There needs to be a very carefully thought out governance framework around this. I think, looking through history, given how Libor was manipulated, there need to be a lot of checks and balances [a