Targeted consultation on the application of the market risk prudential framework

The Commission is interested in evidence and substantiated views from relevant stakeholders. Contributions are particularly sought from EU national regulators and supervisors, banks and other financial institutions, and organisations representing end-users of financial services, think tanks and academics.

The European Commission aims to gather views from stakeholders on the 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 the empowerment in Article 461a of the 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.