The European Commission adopted a delegated act postponing by one year, to 1 January 2027, the EU application of the Fundamental Review of the Trading Book (FRTB), the last remaining element of the Basel III standards still to apply in the EU. The change delays the start of the revised market risk capital requirements for banks’ trading activities. Most Basel III requirements entered into force on 1 January 2025 under the 2024 Banking package, which also allows the Commission to postpone or temporarily amend the FRTB by delegated act. A first delegated act had already deferred the FRTB application date to 1 January 2026; the Commission now points to further delays in implementation by some major global jurisdictions, as well as input from a public consultation and its own technical assessment, as the basis for extending the deferral. The FRTB is intended to introduce more sophisticated risk measurement techniques to align capital charges more closely with actual trading risks. The delegated act is subject to scrutiny by the European Parliament and the Council for three months, which can be extended by a further three months. The Commission indicated it will use the additional time to assess international developments and carry out further work on the next steps for FRTB implementation in the EU.
European Commission 2025-06-12
European Commission adopts delegated act delaying EU Fundamental Review of the Trading Book to 1 January 2027
The European Commission has adopted a delegated act delaying the EU application of the Fundamental Review of the Trading Book (FRTB) by one year to 1 January 2027, postponing revised market risk capital requirements for banks. This decision follows implementation delays by major global jurisdictions and input from public consultation and technical assessment. The delegated act is subject to scrutiny by the European Parliament and the Council for up to six months.