Basel Committee may adjust 'blunt' CCP default fund capital
Netting treatment in controversial current exposure method is up for discussion at an April stakeholder meeting, but regulators reject other criticisms
Regulators could revise proposals for the calculation of default fund capital requirements - possibly trimming the cost of joining a central counterparty (CCP) - after admitting the original approach, based on the current exposure method (CEM), is blunt and fails to take account of netting between different members of a CCP.
"We accept the CEM needs to be reviewed to ensure the way netting is accounted for reflects how netting works in a CCP - that's what we're working on right now. CEM is
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