What better way to kick off 2017 than by analyzing some upcoming banking regulations, right? OK, that might not sound like your idea of a good time, but there’s at least one worth talking about. It’s so huge, so impactful and so fundamental to the financial services industry that it presents a unique opportunity to reconsider technology design in a way that unifies back- and front-office functions across.
Fundamental Review of the Trading Book, or FRTB, is due to hit in 2019 and its scope is so broad that many in the business jokingly refer to it as “Basel IV.” Not only that, but FRTB’s requirements are so explicit they will definitely influence technology strategy – which presents a unique opportunity because most banks are actively looking for ways to cut cost and complexity with clouds and virtualization.
Among other things, FRTB will require banks to report their actual risk relative to their stated risk appetite, which will hopefully eliminate the need for the kind of bailouts it took to square things away in 2008.… Read the rest