Session dates: 11 & 12 November
10:00 - 18:00 CET | Time Zone Converter

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Prudential regulation requires banks and other financial firms to maintain adequate capital and liquidity and control risks. This protects customers (e.g. bank depositors) but imposes costs that influence whether firms are willing to provide liquidity (e.g. by acting as security dealers) and how and where they trade (e.g. by using centrally cleared or non-centrally cleared derivatives).  

This course describes the Basel framework for prudential regulation as it has evolved since the financial crisis, explains how it is applied and enforced in local markets, and shows how it affects liquidity, risk-taking, and trading opportunities in fixed income markets.

Learning Outcomes

By completing this course, you will be able to:

  • Explain the objectives and structure of the Basel framework
  • Understand the implications for financial firms of the finalized Basel III reforms
  • Assess the impact of prudential regulation on markets for sovereign and corporate bonds, repo and securities lending, and credit and interest rate derivatives.

Who should attend?

This course is suitable for anyone with exposure to interest rate or credit sensitive products who wants a better understanding of how prudential regulation affects liquidity, risk-taking, and trading opportunities in fixed income markets. Examples might include bond traders, sales teams, portfolio managers, research analysts, risk managers, debt managers, and financial market regulators.

Certification and Programme Recognition

This course is certified by ICMA.

ICMA recommends that 12 learning hours can be associated with this course, based on attended/undertaken hours of study required to successfully complete the learning outcomes.

A Certificate of Attendance will be awarded to those who meet the minimum attendance requirements for this course.

ICMA is a member of the CPD® Certification Service, an FCA-approved qualifications provider and approved by the Securities & Futures Commission of Hong Kong as provider of Continuous Professional Training (CPT).

Please note that your course certificate of attendance or completion should be sufficient to satisfy any professional development requirements – if you require further evidence, please contact us at

Course Trainer

David Oakes

The course is divided into the following key topic areas:

Capital adequacy

  • Why banks hold capital
  • Evolution of Basel framework
  • Basel III minimum regulatory capital requirements
  • Capital conservation buffer and countercyclical buffer
  • Leverage ratio requirement and leverage ratio buffer

Risk capture

  • Risk-weighted assets (RWA)
  • Revisions to standardised approaches for credit risk, credit valuation adjustment (CVA) risk and operational risk
  • Constraints on use of internal models approaches
  • Output floor


  • Sources and uses of liquidity
  • Liquidity Coverage Ratio (LCR) and High Quality Liquid Assets (HQLA)
  • Liquidity monitoring tools
  • Net Stable Funding Ratio (NSFR)

Market risk

  • Sources of market risk
  • Deficiencies in pre-crisis market risk framework
  • Revised and amended minimum capital requirements for market risk
  • Clarifying the trading book/banking book boundary
  • Internal models approach, including expected shortfall (ES) metric, non-modellable risk factors (NMRF) requirement and default risk capital (DRC) requirement
  • Standardised approach, including sensitivities-based method, residual risk add-on (RRAO) and DRC requirement

Counterparty risk

  •  Sources and consequences of counterparty risk
  • Revised CVA risk framework
  • Central counterparties (CCPs)
  • Capital requirements for bank exposures to CCPs
  • Margin requirements for non-centrally cleared derivatives

Impact on bond markets

  •  Basel III treatment of sovereign and corporate bond exposures
  • Impact of Basel capital, leverage, and liquidity requirements on sovereign and corporate bond market liquidity
  • Evidence from the Covid-19 crisis

Impact on repo and securities lending markets

  • Role of repo and securities lending in fixed income markets
  • Impact of Basel capital, leverage, and liquidity requirements on the sovereign bond and credit repo markets
  • Consequences for bond market liquidity and trading

Impact on derivative markets

  • Role of interest rate and credit derivatives in fixed income markets
  • Impact of Basel credit risk reforms on the credit default swap (CDS) market
  • Impact of Basel capital and margin requirements on derivative markets
  • Consequences for bond market liquidity and trading

Application and enforcement

  • Local adoption and adaptation of the Basel framework
  • Prudential regulation in the euro area, the United Kingdom, the United States, and other regions

Classroom Course

Our classroom courses are delivered in-person at a confirmed location.

The Prudential Regulation and Fixed Income markets classroom training course will be delivered in London over 2 full days. Tea, coffee and light refreshments will be provided during the course but please note these courses are not catered. If you have any dietary requirements please let us know when you complete the registration form.

Delegates will be given access to our learning management system and the course materials before the live sessions, and will have access for a total of three months. During these three months you will have the option to keep working through the course materials at your own pace. Please note to ensure you book and take the exam within these six months.

Location Address

110 Cannon Street, London

Classroom course fees*

ICMA Members: EUR 2,400 + VAT (if applicable)
Non-members: EUR 2,900 + VAT (if applicable)

*Our prices do not include travel/accommodation. Please do not book any logistics until you receive email confirmation that the course will go ahead. This will be provided 4 weeks in advance of the start date.

For security reasons, delegates who have not registered in advance will not be admitted to the live sessions.

Please note:
  • All payments must be made in Euro.


Should you have any queries, please contact

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