Recital 2

(2)Given the highly competitive nature of international trading activities, the FRTB standards were adopted on the premise that their implementation across jurisdictions, both in terms of substance and timelines, would ensure an international level playing field for institutions’ trading activities. The monitoring of the implementation of the FRTB standards in other BCBS member jurisdictions, and more specifically in those jurisdictions with many internationally active banks, has pointed to delays and a number of deviations from the international standards, and hence, to a significant risk of distortions to the international level playing field. To address that risk and to gather more information on other jurisdictions’ implementation timelines and actual rules, the Commission has twice used the empowerment in Article 461a(2), point (b), of Regulation (EU) No 575/2013 to defer via delegated acts ⁴ the application of the FRTB standards for the calculation of own funds requirements for market risk in the Union to 1 January 2027.