The European Commission has introduced targeted, time-limited amendments to the EU’s implementation of the Fundamental Review of the Trading Book, the market risk capital framework for banks. Adopted through a delegated act under the Capital Requirements Regulation, the changes are intended to reduce competitive distortions for EU banks while major jurisdictions delay their own FRTB implementation, and include a multiplier to temporarily offset capital impacts for EU banks adversely affected by the framework. The measures will apply for three years from 1 January 2027. The Commission had already postponed the market risk rules for two years, exhausting the full deferral period available under the Capital Requirements Regulation. The amendments follow a public consultation and technical assessment and are intended to support a smoother EU rollout while allowing further monitoring of how the framework is implemented globally. The delegated act will now be reviewed by the European Parliament and the Council under a three-month scrutiny period, which can be extended by a further three months. If neither objects, the measures will enter into application on 1 January 2027 for three years.
European Commission2026-06-04
European Commission adopts three year amendments to EU trading book market risk rules including a temporary capital offset multiplier
The European Commission has adopted a delegated act introducing targeted, time-limited amendments to the EU implementation of the Fundamental Review of the Trading Book, including a multiplier to temporarily offset capital impacts for adversely affected EU banks. The measures, intended to reduce competitive distortions and support a smoother rollout while global implementation is monitored, will apply for three years from 1 January 2027, subject to European Parliament and Council scrutiny.