Regulation
Regulation: International Standards
The G20 OTC derivatives reforms and international standards such as the Basel framework, margin requirements, FRTB and SA-CCR.
Introductory2 pagesPractitioner1 pageAdvanced3 pages
1International Standards
- IntroductoryThe G20 OTC Derivatives ReformsThe items are platform trading, central clearing, trade reporting, and capital for uncleared trades, and margin was added later.
- IntroductoryThe Basel Framework and DerivativesThe Basel Framework is the set of international standards developed by the BCBS, and it rests on three pillars (minimum capital requirements, banks' own risk management and supervisory review, and disclosure).
- PractitionerBCBS-IOSCO Margin Requirements for Uncleared DerivativesThe framework aims to reduce the systemic risk of uncleared trades and to encourage central clearing.
- AdvancedThe Fundamental Review of the Trading Book (FRTB)The FRTB is the market risk capital regulation that the BCBS published and later revised to address issues left over from Basel 2.5.
- AdvancedThe Standardized Approach for Counterparty Credit Risk (SA-CCR)The exposure is 1.4 times the sum of replacement cost and PFE, calculated for each netting set.
- AdvancedThe CVA Risk Capital ChargeThe CVA risk capital charge requires capital for changes in CVA, separate from the capital held against default.