Risk.net Regulation

Risk.net Regulation News, analysis, research and events on prudential regulation of banks and other financial firms and rules on financial products, platforms and markets.

The regulation desk of Risk.net focuses on the content of financial regulation and its implications for banks and buy-side firms. A key topic is prudential regulation, which includes Basel II, 2.5, III, the Fundamental review of the trading book (FRTB), Interest rate risk in the banking book (IRRBB), rules relating to global systemically important banks, clearing houses, insurers, reinsurers and a

sset managers, regulatory stress tests such as the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR), recovery and resolution rules for banks and market infrastructures, bank structure rules such as Volcker, Liikanen and ring-fencing in the UK. Our journalists also cover macroprudential rules, designed mainly to enable central banks and supervisors avoid or manage asset bubbles, and regulation on specific products, platforms or markets – primarily the G20 derivatives reform agenda, which imposes clearing, ex*****on and reporting requirements on swaps and in some cases futures and includes European Market Infrastructure Regulation (Emir) and the Dodd-Frank Act, as well as their equivalents in other G20 jurisdictions. Our target readers comprise a wide variety of bank professionals – from senior executives and traders to risk managers and treasurers – as well as bank clients and other market participants that experience the second-order impacts of regulation, such as higher costs, lower liquidity and increased volatility (most notably corporates and buy-side firms). The desk’s coverage will also be of interest to other firms that are directly affected by relevant regulations, such as clearing houses, data repositories, trading platforms, exchanges, non-bank market-makers, brokers, post-trade infrastructure (limit hubs, middleware, margining utilities, netting and compression services); and firms that help banks and others cope with the effects of regulation, such as software and systems vendors, lawyers and consultants.

“We should not go from administration to administration watching regulations shift far in one direction and far in the o...
08/09/2025

“We should not go from administration to administration watching regulations shift far in one direction and far in the opposite direction” – Kristin Johnson, newly departed CFTC commissioner

Lack of commissioners risks stalling rulemaking at critical juncture for new crypto initiatives

“There’s no chance of the [CFTC’s] operational resilience proposal being resurrected any time soon. The industry… will n...
04/09/2025

“There’s no chance of the [CFTC’s] operational resilience proposal being resurrected any time soon. The industry… will not mourn its loss – it’s completely superfluous” – Stephen Morris, former CFTC lawyer.

Commissioner Johnson touts framework as response to Ion hack, but lawyers say it misses target

“The Fed can do whatever it wants in its stress test without being Basel-non-compliant, since it’s bespoke to the US” – ...
28/08/2025

“The Fed can do whatever it wants in its stress test without being Basel-non-compliant, since it’s bespoke to the US” – Sarah Flowers, Bank Policy Institute

A sacrifice will have to be made to ensure new market risk rules meet demands for capital neutrality

“This is an interesting approach by the Japanese. The [FSA] regulation is very practical. Maybe we could import this” – ...
26/08/2025

“This is an interesting approach by the Japanese. The [FSA] regulation is very practical. Maybe we could import this” – market risk manager, European bank

Relief granted due to scarcity of vendors offering pricing data for market risk models

ECB recommends Dora tweaks.
19/08/2025

ECB recommends Dora tweaks.

EU regulator pushes multi-cloud strategy for banks, but guidance will not be binding

Exclude special collateral repo from haircut discussions, say market participants.
18/08/2025

Exclude special collateral repo from haircut discussions, say market participants.

Industry experts say negative haircuts on scarcer collateral shouldn’t be seen as alarming

15/08/2025

Is the end in sight for the Consolidated Audit Trail?

Consolidated Audit Trail’s funding order setback could herald its demise

Fed proposals could increase G-Sib balance sheet capacity by $6.6 trillion – but will banks use the increased leverage f...
14/08/2025

Fed proposals could increase G-Sib balance sheet capacity by $6.6 trillion – but will banks use the increased leverage for Treasury trading or opt for higher-yielding assets instead?

Most of the biggest dealers aren’t leverage constrained now, and experts are sceptical that banks will use the extra capacity for Treasuries

UK’s Upper Tribunal ruling shows market manipulation charges can be upheld even without direct evidence of traders collu...
13/08/2025

UK’s Upper Tribunal ruling shows market manipulation charges can be upheld even without direct evidence of traders colluding, finds.

Decision shows trading patterns alone can be enough for UK regulators to demonstrate market manipulation

EBA looking to reduce long waiting times for European banks’ credit model approvals.
11/08/2025

EBA looking to reduce long waiting times for European banks’ credit model approvals.

Europe’s banking watchdog is planning to streamline how it authorises credit model updates. Not a moment too soon, say bankers

Interview: “The Federal Reserve’s financial independence from Congress has been really destroyed as one pillar of its in...
06/08/2025

Interview: “The Federal Reserve’s financial independence from Congress has been really destroyed as one pillar of its independence as an institution” – Judy Shelton, senior fellow, Independent Institute

Potential successor to Jerome Powell makes the case for cutting rates and tamping down dollar volatility

EC set to propose temporary changes to FRTB to maintain competitiveness with US banks.
29/07/2025

EC set to propose temporary changes to FRTB to maintain competitiveness with US banks.

As EC runs out powers to delay rules again, proposal for temporary capital relief is on the agenda

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