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 potential policy options in relation to the application of the EU’s prudential framework for market risk. Having already postponed the implementation of the market risk rules by two years (the maximum allowed under the empowerment in the Capital Requirements Regulation (CRR)), the Commission is seeking feedback on a potential policy option that introduces targeted amendments offsetting the negative capital impacts for EU banks for three years.

We note that recent developments (i.e. UK’s communication around their Basel standards implementation and a potential US reproposal in the first quarter of 2026) point to an impactful misalignment in implementation timelines. 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.