​The EBA publishes a no-action letter and technical considerations to support the implementation of the market risk framework for EU banks

​The European Banking Authority (EBA) today published a no-action letter on the boundary between the banking book and the trading book and shared technical clarifications on issues linked to the European Commission’s Delegated Act modifying the calculation of own funds requirements for market risk based on the Fundamental Review of the Trading Book (FRTB) framework. The measures support a consistent and harmonised implementation of the revised framework across the EU.

​The European Commission’s Delegated Act is currently under scrutiny by the European Parliament and Council. The EBA’s no-action letter and technical considerations will become relevant once the Delegated Act enters into force.

​In its no-action letter, the EBA recommends that competent authorities do not prioritise supervisory or enforcement action in relation to the provisions of the FRTB framework governing the boundary between the banking book and the trading book and internal risk transfers between these books, as well as certain related reporting requirements. 

​Without these clarifications, institutions applying the institution-specific multiplier introduced by the Delegated Act (‘multiplier banks’) would face an operationally complex and costly implementation of multiple versions of the boundary framework. Making all other institutions apply a different boundary framework than those ‘multiplier banks’ would create level-playing-field concerns within the Union. 

​To support a consistent application of the revised framework, the EBA is also hereby providing technical considerations on material implementation issues for the application of the market risk framework as modified by the Delegated Act. 

​Finally, the EBA clarifies the treatment of institutions for the purposes of the supervisory benchmarking exercise.​

Legal basis and background 

The no-action letter is issued under Article 9c of Regulation (EU) No 1093/2010 (EBA Founding Regulation), which provides that the EBA may issue no-action letters if it considers that the application of one of the relevant legislative acts is liable to raise significant issues, as provisions contained in such act may directly conflict with another relevant act.

On 4 June 2026, the European Commission adopted a Delegated Act (‘3rd FRTB DA’) under Article 461a of Regulation (EU) No 575/2013 (CRR), that, upon entry into force, will modify the calculation of own funds requirements for market risk for from 1 January 2027 for a period of three years. The Delegated Act introduced targeted adjustments to the FRTB framework and was accompanied by question and answers on some aspects of its application, including the application of the boundary between the trading and non-trading book. The EBA's no-action letter and technical clarifications intend to facilitate a smooth, consistent and proportionate implementation of the revised framework across the EU.