European Commission announces postponement of fundamental review of Basel market risk reforms

Mairead McGuinness, European Commissioner for Financial Services, Financial Stability and Capital Markets Union (CMU), delivered a speech in which she discussed the importance of continuing to make progress on the Banking Union and the CMU. Among the topics on the Commission’s agenda is the analysis of the EU securitisation market. The European Commission will launch a public consultation in the autumn on how to make the market more attractive to issuers and investors. Ms McGuinness also announced a one-year extension, until 1 January 2026, of the implementation date of the BCBS reforms on the Fundamental Review of the Trading Book (FRTB). Ms McGuinness explained that it is now clear that there will be a delay in the US in implementing the reforms and that a delay in the EU is therefore necessary to ensure a level playing field globally. The postponement will be adopted by delegated act, which will take at least three months.

(See source.)