EBF has published its response to the final report of the High-level Expert Group on reforming the structure of the EU banking sector. It says that the report does not make a compelling case for mandatory separation of trading activities. Instead, EBF supports strengthening the use of Recovery and Resolution Plans, which the report considered but eventually discarded. EBF also expresses concerns on other proposals in the report, such as those for a designated bail-in instrument category, a floor for risk weights and a non-risk based capital buffer for the trading book on top of those already proposed under CRD4/CRR. In a joint letter, ISDA and AFME also warn that requirements to ring-fence market making could lead to a reduction in banks’ ability to provide liquidity to the capital markets. (Source: EBF Response to Liikanen Report and AFME Letter on Bank Separation Rules)