EU banks fear capital hit from CCP approval delays

Risk-weights set to jump after June 15

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European banks fear delays to Europe's approval regime for central counterparties (CCPs) could lead to big jumps in capital for trades cleared at a number of non-EU venues. Europe's version of Basel III allows banks to treat non-EU clearers as so-called qualifying CCPs (QCCPs) until June 15, meaning cleared exposures receive a rock-bottom 2% risk-weight. Market participants initially expected authorisation decisions by the European Securities and Markets Authority (Esma) and the European Comm

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