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PRA struggles to follow Fed’s FRTB modelling moves

Market risk experts say minor differences in US rules add up to more incentives for IMA adoption

Two tango dancers with a merging of US and UK flags as a background
Credit: Risk.net montage

As US regulators change their tune on the details of globally agreed standards for trading book capital, the UK’s Prudential Regulatory Authority has tried to dance along. But sometimes they find themselves out of step.

Practitioners have noticed when the PRA misses a beat, and are now fretting that the differences will hand US banks a capital advantage.

“The PRA has done a good job aligning mostly with the US,” says Gregg Jones, a director in the International Swaps and Derivatives Association’s

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