Bankers are pressing for a flexible approach to calculating capital requirements for trading operations, but could soon face more rigid regulation on an interim basis.

The Federal Reserve is expected to propose two ways of calculating capital levels in the requirements for trading portfolios on Tuesday, one a virtual copy of the regulation proposed this year by the Bank for International Settlements and the other a more lenient rule developed by the Fed that allows banks to use their own models.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.