On May 3, the Basel Committee on Banking Supervision issued a consultative document on the fundamental review of trading book capital requirements. The consultative document proposals include: (i) a more objective boundary between the trading book and banking book that reduces the scope for regulatory arbitrage; (ii) moving from value-at-risk to expected shortfall to better capture tail risk; (iii) calibrating the revised framework to a period of significant financial stress; (iv) incorporating the risk of market illiquidity; (v) measures to reduce model risk; and (vi) a revised standardized approach that is intended to be more risk-sensitive. Comments must be submitted by September 7.  Basel Release.