This chapter addresses the emerging international capital standards, particularly the standards for market risks arising from the trading activities of banks. The basic framework under consideration for structuring new capital requirements is examined. The April 1993 proposals of the Basle Committee on Banking Supervision and some of the thoughts of the Committee regarding new standards are reviewed. The Committee was considering two risk-measurement techniques: one based on a so-called standard approach that applies risk weights to various trading positions, and another based on the results of a bank’s own internal models.