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 re
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