Baskets will suffer in trading book regime, warns HSBC exec

Capital charges will be ‘very difficult to explain’, conference hears

Manoj Bhaskar
Manoj Bhaskar

Proposed new trading book capital rules will run into fundamental problems when they are applied to basket products, producing capital numbers that are difficult to explain to trading desks and clients, according to Manoj Bhaskar, global head of regulatory and risk analytics at HSBC.

"It's always nice to have a number, but what does it mean? How will it change as time passes? It's going to be very difficult to explain that," he said, adding that this lack of transparency could ultimately mean

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free membership? Click here

This address will be used to create your account

The new rules of market risk management

Amid 2020’s Covid-19-related market turmoil – with volatility and value-at-risk (VAR) measures soaring – some of the world’s largest investment banks took advantage of the extraordinary conditions to notch up record trading revenues. In a recent…

ETF strategies to manage market volatility

Money managers and institutional investors are re-evaluating investment strategies in the face of rapidly shifting market conditions. Consequently, selective genres of exchange-traded funds (ETFs) are seeing robust growth in assets. Hong Kong Exchanges…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here