As the CRD IV and Basel III implementation date approaches, those sell-sides and buy-sides which best adapt to the changing regulatory requirements will reap the highest rewards.
Our white paper shows why we believe it’s crucial for both sides to assess their own long-term trading strategy and to choose their next steps as early as possible – or be forced into a decision by the market.
Keppel Ltd. 1Q 2024 Business Update Presentation Slides
CRD IV Rules Tighten Capital Requirements for Counterparty Credit Risk
1. Final CRD IV Rules
www.catalyst.co.uk
Impact on Capital Requirements for
Counterparty Credit Risk
November 2012
Introduction
In July 2011, the European Commission published a proposal version of the Capital Requirements
Directive, which is the European implementation of the Basel III rules and provides a much
needed refresh of the existing capital requirements framework.
All European entities will have to comply with
CRD IV, while their counterparts in other
jurisdictions (ie the US) will need to comply with
their local Basel III implementation.
A vote on the final text by the Commission was
expected to take place during 2012, but has
been repeatedly delayed and at the time of
writing (end November 2012) has still not been
released.
What is known is that EU Member States have
to transpose, and firms of the financial service
industry have to apply, the CRD from January 1,
2013, although the UK FSA is postponing the
implementation date of CRD IV to July 1, 2013.
It is likely that other EU member states will
follow.
CRD IV introduces
New liquidity requirements
A re-definition of what constitutes
‘capital’
Amended capital deductions
Increased levels of capital required
A number of new capital buffers