FRTB

FRTB stands for the Fundamental Review of the Trading Book. It is a set of rules from the Basel Committee on Banking Supervision (BCBS), which is an international group of banking regulators. The rules are designed to make sure that banks who trade in financial markets have strong risk management processes in place, so that they can manage the risk of their investments. The FRTB rules set out how banks should calculate, measure and manage their trading book risks. This includes things like setting up their own risk models, keeping records of their trading activity, and having a plan in place to limit the amount of risk they take. This helps make sure that banks are better prepared if something goes wrong and they lose money on their investments.