Suspend bank capital rules following an FCM default, CFTC told
Banks may be more likely to bid in post-default auctions if temporary capital relief is granted
Market participants want regulators to temporarily suspend bank capital requirements when a member of a central counterparty (CCP) defaults as a means to encourage the surviving firms to take on the positions of the failed member's customers.
A group of clearing experts tasked by the US Commodity Futures Trading Commission (CFTC) with recommending ways to strengthen CCP default management
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