FCA seeks views on market risk capital requirements

The FCA is asking for views on whether it would remove unnecessary barriers and free up capital if it creates tailored market risk rules for non-bank trading firms. The current rules we designed to ensure banks were holding enough capital to absorb big trading losses and protect depositors. But given the potential failure of non-banks is arguably likely to cause less harm, placing similar requirements on them as for banks places a burden on these firms which could limit their ability to provide liquidity.

So the FCA is looking to see what it could do to boost liquidity and foster innovation.

It’s asking for views on various different options, and seeks views by 10 February. It will then follow up with a consultation in 2026 and look to bring in new rules in 2027.