Part 2 - Fundamental Review of the Trading Book - Internal Model vs Standardized Approach by London Financial Studies

In the second part of this podcast, Dr Simon Acomb gives us additional insights into the Fundamental Review of the Trading Book (FRTB) - the recent piece of regulation by the Basel Committee affecting capital standards for market risk. In particular, Simon addresses the differences between the Standard model and the Internal model approaches for financial institutions of different sizes. He also describes new concepts such as vega risk and residual risk add-on, which were introduced by the new standardized approach.

This podcast was produced by London Financial Studies Limited.