MANAGEMENT

Detailed explanation-1: -The Fundamental Review of the Trading Book (FRTB): An Introductory Guide-SIFMA-The Fundamental Review of the Trading Book (FRTB): An Introductory Guide-SIFMA.

Detailed explanation-2: -The Fundamental Review of the Trading Book (FRTB) is a comprehensive suite of capital rules developed by the Basel Committee on Banking Supervision (BCBS) as part of Basel III, intended to be applied to banks’ wholesale trading activities.

Detailed explanation-3: -The Fundamental Review of the Trading Book is an international standard that sets out rules governing capital banks must hold against market risk exposures.

Detailed explanation-4: -FRTB requires banks to prove their intent to move an asset to the trading book as the assets in the trading book are there with an intent to trade and the banks are required to physically manage the risk that are associated with the underlying asset.

Detailed explanation-5: -FRTB is a set of regulations developed by the Basel Committee on Banking Supervision, to improve the way banks calculate and hold regulatory capital for market risk. The new framework replaces a pre-existing one, incorporating lessons learned from the Global Financial Crisis of 2008.