ECB tells IMA banks to apply before rules are complete

Dealers criticise “unreasonable” timetable for FRTB model approvals, revealed in September call

ECB may require IMA applications while rules are still under construction

European banks that want to calculate their own trading book capital requirements will have to apply for approval before the rules have been finalised, under a timeline sketched out by the European Central Bank in a September 29 conference call with banks.

The schedule gives banks just over a year to build their models. Dealers say this is unrealistic, in large part because key elements of the rules will not be finalised – including a revised version of the test that acts as a gateway to the