(16)The implementation of the FRTB standards introduces more risk sensitive and complex methodologies that may be unnecessary for institutions with small trading activities. That is particularly the case for those small institutions that qualify for the derogation for small trading book business under Article 94 of Regulation (EU) No 575/2013, but exceed the thresholds set out in Article 325a of that Regulation due to foreign exchange risk or commodity risk resulting from non-trading book positions. To avoid disproportionate implementation costs and operational complexity for such Union credit institutions, given that other major jurisdictions either have similar measures in place, or do not apply the market risk own funds requirements to banks with small trading book businesses, Union credit institutions with small trading books should be allowed to use the simplified standardised approach for their non-trading book positions subject to foreign exchange risk and commodity risk.