12:02 PM EDT, 06/11/2024 (MT Newswires) -- (Updates with additional details and European Commission spokesperson response in the third and fourth paragraph.)

The European Union is poised to delay the implementation of rules that impact banks' trading businesses by one year since those activities are global in nature and the bloc's lenders would be disadvantaged by the ongoing wrangling over standards in the US, Bloomberg reported Tuesday, citing people familiar with the matter.

The European Commission has the authority to delay rules on banks' trading operations without consulting with the European Parliament or governments, the report said.

A Commission spokesperson told MT Newswires in an emailed response that the Basel III standards are being finalized for implementation by Jan. 1, 2025, and that the Commission will support EU banks and stakeholders in this process.

"Given the uncertainty around the implementation of the standards in other jurisdictions, the Commission monitors the international developments and stands ready to act if necessary in specific areas," the spokesperson said.

"The exercise of this power would not delay the implementation of all new Basel rules, but only the rules on market risk," Bloomberg quoted a European Commission spokesperson as saying.

There has been no formal decision yet regarding a partial delay, but the EU may introduce new Basel rules by this summer, Bloomberg said, citing the sources.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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