The European Commission is consulting on policy options in relation to the application of the EU’s prudential framework for market risk. Following the postponement by one year of the new market risk own funds requirements in 2024 to preserve the international level playing field for EU banks’ trading activities, the European Commission is considering acting under Capital Requirements Regulation (CRR) to adopt a Delegated Regulation by the end of June 2025.
“We note that recent developments in the US and UK give no clarity on the future implementation of the Basel standards in these jurisdictions. This raises questions regarding the international level playing field and the impact on EU financial markets, and the possible EU response to address these concerns,” the EC wrote.