Internal Transfers & Desk Trading Strategies

Banks need to review existing strategies, make changes, and document trading movements.

This requires new processes and gap analysis, including:

Internal Transfers
Desk Topology
Documenting and Reporting

FRTB stipulates that banks cannot benefit from internal transfers and therefore must adhere to strict enforcement of the Banking Book/Trading Book boundary and fully document transfers between Trading Desks.

Any movement of instrument booking must be fully documented and approved by regulators.

Strategy & Structure

Banks must review Desk Trading Strategies, implementing significant changes to maintain an optimal structure, whilst balancing profitability to avoid failure under the strict FRTB regulation.

Target Operating Model Service

We offer expert advice on developing your Target Operating Model, giving you:

  1. Consultation on the trading book/banking book boundary process

  2. Identification of gaps in desk supervision and calculation

  3. Computational and storage demands of FRTB, including parallel operation with existing Risk systems

machine learning