When global standard-setters first revealed their planned revamp of trading book capital rules, bankers responded with furrowed brows. The new regime was dizzyingly complex, costly to implement and, worse, packed a huge capital hit.
Several consultation periods later, the Basel Committee on Banking Supervision has released its latest – and supposedly final – version of the Fundamental Review of the Trading Book. The good news for banks? The capital impact is lower. The bad news? The rules are