Algorithmic trading risks assessment. Senior financial supervisors from 10 countries issued a report discussing the risks associated with algorithmic trading and identifying principles and questions for supervisors and supervised firms to consider. (4/30/3015) New York Federal Reserve press release.
Basel Committee update on adoption of Basel standards. The Basel Committee on Banking Supervision issued an updated progress report on the adoption of the Basel regulatory framework as of March 31, 2015. (4/27/2015) BIS press release.
Basel Committee removes selected national discretions and provides guidance on funding valuation adjustment. The Basel Committee on Banking Supervision has agreed to remove certain national discretions from the Basel capital framework. They include treatment of past-due loans; definition of retail exposures; transitional arrangements for corporate, sovereign, bank and retail exposures; and rating structure standards for wholesale exposures. The Basel Committee also issued a response to a frequently asked question (FAQ) on funding valuation adjustment. The FAQ notes that a bank should continue to derecognize its debit valuation adjustment in full, whether or not it has adopted a funding valuation-type adjustment. (4/21/2015) BIS press release.