Aite Group expects adoption of third-party tools for FRTB compliance to take flight in 2020.
While most regulations have led to concerns at financial institutions given the costs of compliance—from staffing and technology to shifts in operating models—the FRTB rules have challenged both market participants and regulators to such a degree that a number of changes to its implementation timeline have resulted. Now Is the Time to Get Serious About the Fundamental Review of the Trading Book, Aite Group’s latest report, highlights some of the latest developments focused on risk management technology and provides details of third-party solutions designed to get banks ready for FRTB.
“Delay to the regulation has meant many institutions, especially lower-tiered banks, have dragged their feet in preparation for the changes. Aite Group believes this is the time for banks to get serious, even with the lifeline of an additional year to prepare due to the COVID-19 pandemic,” explains Audrey Blater, senior analyst at Aite Group.
This Impact Report provides a recap of the regulatory requirements of FRTB, a review of the timeline, and the implications to banks’ operational models around risk, data management, and technology. It also unearths the challenges market participants are experiencing with the regulation and what the industry should expect by 2023.