Basel to propose IM offset in leverage ratio

Four sources say draft will make concession; it could also revive EU-US segregation drama

Basel Trendline

The Basel Committee on Banking Supervision is about to wade into one of regulation’s longest-running beefs, with a consultation on how banks should treat client margin on cleared trades when calculating the leverage ratio.

Currently, initial margin (IM) cannot be deducted from exposure, generating heavy capital requirements for bank clearing businesses. But any concession – which banks, clearing houses and some regulators have been calling for since 2013 – is entangled in a separate

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here