Basel Committee releases revised minimum capital requirements for market risk. The Basel Committee on Banking Supervision has modified its market risk framework to revise the minimum capital requirements. The framework includes a revised boundary between the trading book and banking book; revised internal models and standardized approaches for market risk; a shift from value-at-risk to an expected shortfall measure of risk under stress; and the incorporation of the risk of market illiquidity. The revised framework will become effective on January 1, 2019. (1/14/2016) BIS press release.
FSB releases public responses to consultation on resolution strategies for systemically important insurers. The Financial Stability Board (FSB) has published the responses it received to its consultation document “Developing Effective Resolution Strategies and Plans for Systemically Important Insurers.” (1/13/2016) FSB press release.
ISDA expands board and revises mission and strategy statement. The International Swaps and Derivatives Association (ISDA) announced that it has expanded the size of its board to 30 members and revised its mission and strategy statement. (1/12/2016) ISDA press release.
ISDA Determinations Committees propose rule changes to strengthen standards of conduct at DC member firms. ISDA’s Credit Derivatives Determinations Committees (DCs) approved changes to DC rules that would require DC member firms to establish written policies and procedures regarding the identification and management of any conflicts of interest arising from DC membership, the handling of any material non-public information obtained through the DC process, and the firm’s internal process of deciding how to vote. The changes will be implemented starting in mid-February 2016. (1/11/2016) ISDA press release.