Mitigating Risk

Three Data Sources Are Better than One: FRTB Data Strategy

By DTCC Connection | Sep 24, 2020

Banks are continuing to prepare for the Fundamental Review of the Trading Book (FRTB), which was recently moved to 2023 due to the coronavirus pandemic. They should also take this opportunity to complete the design and deployment of a data sourcing and management strategy, which by most estimates should be well articulated and in place no later than mid-2021, to allow for timely submission to regulators and ensure maximized business results.

No single data source can capture all trade activity around the world. Banks looking to optimize their FRTB’s Risk Factor Eligibility Test (RFET) results should consider using a combination of three data sources that can provide access to the deepest and widest data coverage across asset classes. DTCC recommends a three-tiered approach:

Three Data Sources Are Better than One: FRTB Data Strategy

 

 

 

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