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Reviewing the FRTB: Commentary on the Basel Committee's Fundamental Review of the Trading Book

The Basel Committee on Banking Supervision published its Fundamental Review of the Trading Book (FRTB) in May 2012. The Review is a response to the shortcomings of trading book regulations that were exposed during the financial crisis, and sets out a vision for the future state of capital standards for trading risks. This note outlines the key points of the Review, and summarizes the remarks made by MSCI in its formal response.